Executive Summary

Jul 2019
PROSPECTS
Stronger retail volume decline due to rising prices in 2018

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.

New regulations restrict differentiation for cigarette producers

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.

Government efforts to reduce smoking appear to be effective

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.

COMPETITIVE LANDSCAPE
Philip Morris to withdraw from cigarettes to focus on heated tobacco products

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.

Mixed results for dominant leader British American Tobacco

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.

Increasing number of economy brands likely to emerge over forecast period

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.

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Cigarettes in New Zealand

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Overview

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:

  • Analysis of key supply-side and demand trends
  • Detailed segmentation of international and local products
  • Historic volumes and values, company and brand market shares
  • Five year forecasts of market trends and market growth
  • Production, imports, and exports of finished cigarettes
  • Robust and transparent market research methodology, conducted in-country

Our market research reports answer questions such as:

  • What is the market size of Cigarettes in New Zealand?
  • What are the major brands in New Zealand?
  • What is the legislative environment like in New Zealand?
  • What are the rates of cigarette taxation in New Zealand?
  • Do premium, mid-price or economy cigarettes dominate in New Zealand?
  • What is the rate of illicit trade in New Zealand?
  • How many smokers are there in the country?

Why buy this report?

  • Gain competitive intelligence about market leaders
  • Track key industry trends, opportunities and threats
  • Inform your marketing, brand, strategy and market development, sales and supply functions

This industry report originates from Passport, our Tobacco market research database.

Cigarettes in New Zealand - Category analysis

HEADLINES

PROSPECTS

Stronger retail volume decline due to rising prices in 2018
New regulations restrict differentiation for cigarette producers
Government efforts to reduce smoking appear to be effective

COMPETITIVE LANDSCAPE

Philip Morris to withdraw from cigarettes to focus on heated tobacco products
Mixed results for dominant leader British American Tobacco
Increasing number of economy brands likely to emerge over forecast period

TAXATION AND PRICING

Taxation rates
Summary 1 Taxation and Duty Levies 2013-2018
Average cigarette pack price breakdown
Summary 2 Average Cigarette Pack Price Breakdown: Brand Examples

CATEGORY DATA

Table 1 Sales of Cigarettes: Volume 2013-2018
Table 2 Sales of Cigarettes by Category: Value 2013-2018
Table 3 Sales of Cigarettes: % Volume Growth 2013-2018
Table 4 Sales of Cigarettes by Category: % Value Growth 2013-2018
Table 5 Sales of Cigarettes by Blend: % Volume 2013-2018
Table 6 Sales of Cigarettes by Standard/Menthol/Capsule: % Volume 2013-2018
Table 7 Sales of Cigarettes by Regular/Slim/Superslim/Microslim: % Volume 2013-2018
Table 8 Sales of Cigarettes by Pack Size: % Volume 2013-2018
Table 9 Sales of Cigarettes by Price Band: % Volume 2013-2018
Table 10 NBO Company Shares of Cigarettes: % Volume 2014-2018
Table 11 LBN Brand Shares of Cigarettes: % Volume 2015-2018
Table 12 Sales of Cigarettes by Distribution Format: % Volume 2013-2018
Table 13 Illicit Trade Estimate of Cigarettes: Volume 2013-2018
Table 14 Forecast Sales of Cigarettes: Volume 2018-2023
Table 15 Forecast Sales of Cigarettes by Category: Value 2018-2023
Table 16 Forecast Sales of Cigarettes: % Volume Growth 2018-2023
Table 17 Forecast Sales of Cigarettes by Category: % Value Growth 2018-2023
Table 18 Forecast Sales of Cigarettes by Blend: % Volume 2018-2023
Table 19 Forecast Sales of Cigarettes by Standard/Menthol/Capsule: % Volume 2018-2023
Table 20 Forecast Sales of Cigarettes by Regular/Slim/Superslim/Microslim: % Volume 2018-2023
Table 21 Forecast Sales of Cigarettes by Pack Size: % Volume 2018-2023
Table 22 Forecast Sales of Cigarettes by Price Band: % Volume 2018-2023

Tobacco in New Zealand - Industry Overview

EXECUTIVE SUMMARY

Positive value sales for tobacco supported by rising prices due to tax hikes
Heated tobacco products launch in New Zealand
Plain packaging legislation proves restrictive for tobacco players
Supermarkets continue to gain share across many tobacco categories
Strong demand for smoking alternatives to drive growth over forecast period

OPERATING ENVIRONMENT

Legislation
Legislative overview
Summary 3 Legislation Summary at a Glance
Minimum legal smoking age
Smoking prevalence
Tar levels
Health warnings
Plain packaging
Point-of-sale display bans
Smoking in public places
Flavoured tobacco product ban
Reduced harm
Vapour products

PRODUCTION/IMPORTS/EXPORTS

MARKET INDICATORS

Table 23 Number of Adult Smokers by Gender 2013-2018

MARKET DATA

Table 24 Sales of Tobacco by Category: Volume 2013-2018
Table 25 Sales of Tobacco by Category: Value 2013-2018
Table 26 Sales of Tobacco by Category: % Volume Growth 2013-2018
Table 27 Sales of Tobacco by Category: % Value Growth 2013-2018
Table 28 Forecast Sales of Tobacco by Category: Volume 2018-2023
Table 29 Forecast Sales of Tobacco by Category: Value 2018-2023
Table 30 Forecast Sales of Tobacco by Category: % Volume Growth 2018-2023
Table 31 Forecast Sales of Tobacco by Category: % Value Growth 2018-2023

SOURCES

Summary 4 Research Sources