Increasing taxation over the review period continued to impact unit prices of cigarettes in 2018 with manufacturers forced to pass on these higher costs to consumers, resulting in the category recording positive current value growth. However, this negatively influenced demand for cigarettes in New Zealand with retail volume sales recording a stronger decline compared to the previous year.
Another factor influencing the weak performance of cigarettes in 2018, and will continue to be a major restrictive factor for cigarettes producers, was the implementation of the Smoke-free Environments (Tobacco Standardisation Packaging) Amendment Act of 2016. All packaging of cigarettes is now required to be standardised with generic plain packaging with brand and product names for all companies to be in a standard colour, position, font size and style.
In addition to various regulations that the New Zealand government has introduced in its efforts to reduce smoking amongst the local population, it also continued to highlight its Smoke-free New Zealand campaign, which is a long-term programme to make New Zealand smoke-free by 2025. To achieve this, a number of deterrents have been put into place to discourage young people from taking up smoking and to encourage smokers to attempt to give up by using funded smoking cessation aids.
With such a concentrated competitive landscape within cigarettes in New Zealand, which sees British American Tobacco (New Zealand) Ltd continue to dominate retail volume sales, Philip Morris International plans to stop selling cigarettes in the country to focus its efforts on developing and marketing its tobacco heating device IQOS, which launched at the end of the review period. With declining share and sales for its cigarettes such as Choice Kingsize Filter, Marlboro Gold and Longbeach Filter, the player clearly sees its future in the potential that heated tobacco products can offer.
Although recording declining retail volume sales in line with the performance of the category, cigarettes continued to be dominated by British American Tobacco (New Zealand) Ltd, supported by its vast portfolio including leading brands Club Classic Red, Pall Mall Red Baseline and Rothmans Red. However, its newer brand Winfield Select, which launched in 2017, was one of the stronger performers in the category with double-digit retail volume growth.
Consumers of cigarettes in New Zealand are increasingly looking for brands which offer them the best value for money and are gradually shifting towards brand loyalty based on price. Often, their first selection criteria at the point of sale is to seek the lowest price pack of cigarettes.
You have no recently viewed reports.
Why not browse through our Featured or Trending Reports to see what we have to offer?
Discover the latest market trends and uncover sources of future market growth for the Cigarettes industry in New Zealand with research from Euromonitor's team of in-country analysts.
Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.
If you're in the Cigarettes industry in New Zealand, our research will save you time and money while empowering you to make informed, profitable decisions.
The Cigarettes in New Zealand market research report includes:
Our market research reports answer questions such as:
Why buy this report?
This industry report originates from Passport, our Tobacco market research database.