Volume sales of cigarettes continued on a downward trajectory in 2020, which was in line with an ongoing trend seen over the review period, with more and more smokers looking to quit. Some New Zealanders saw the lockdown as an opportunity to reduce their consumption of cigarettes by switching to e-vapour products, which are seen as a longer-term cost-effective method, or attempted to quit smoking altogether.
Cigarettes in New Zealand retained a highly consolidated competitive landscape in 2020, dominated by British American Tobacco which holds a wide portfolio of leading brands including Pall Mall and Rothmans. Nevertheless, while these brands gained share in 2020, the company’s premium brands Benson & Hedges and Dunhill continued to lose share.
All major cigarettes producers have had to ensure that their portfolios now include economy cigarettes as consumers increasingly turn to this more affordable option following further tax rises and the economic pressures created by COVID-19. Therefore, economy brands such as Choice Blue from Philip Morris continued to gain retail volume share in 2020.
The New Zealand government’s various efforts to drive the country towards a smoke-free environment are set to continue, resulting in a further notable drop in the smoking prevalence rate amongst the adult population over the forecast period. Meanwhile, with the average unit price of cigarettes set to more than double over the forecast period lower-income consumers are likely to find it increasingly hard to afford to buy even economy price band cigarettes.
British American Tobacco is likely to retain its dominant position over the forecast period, although there is likely to be a continuation of the downtrading trend seen during the review period. In line with this, the previously popular Winfield range is expected to lose further retail volume share, while more affordable brands such as Easy and Chesterfield are expected to pick up share.
Pressure is growing on the New Zealand government to take action to reduce smoking prevalence in the country in line with its Smoke-free 2025 goals. For example, the Cancer Society launched a petition to reduce the number of stores permitted to sell tobacco across the nation.
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Understand the latest market trends and future growth opportunities for the Cigarettes industry in New Zealand with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
If you're in the Cigarettes industry in New Zealand, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
This report originates from Passport, our Cigarettes research and analysis database.
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