Cigarettes in Norway

PROSPECTS

Cigarette volume sales continue to fall as smokers switch to other alternatives

In 2018, cigarettes in Norway posted a further decline in retail volume sales, with the category having been on a downward trajectory since 2009.

Smoking prevalence showing signs of stabilisation

For the first time in the review period, smoking prevalence in Norway remained fairly flat in 2018, with a rise in female smoking prevalence offset by a fall in smoking among men.

Cross-border trade remains a significant concern for retailers

Around 90% of the population in Norway live within a 2-hour drive from Sweden and this is one of the reasons why cross-border trade remains a problem for many local retailers. The most common form of cross-border trade concerns Norwegian consumers going on day trips to neighbouring Sweden, typically stockpiling products whose prices are lower across the border.

COMPETITIVE LANDSCAPE

British American Tobacco maintains its leading position thanks to its popular Prince brand

British American Tobacco remained the leading player in cigarettes in Norway in 2018, accounting for just over half of overall volume sales. The company benefits from offering the largest number of brands in mainstream channels such as grocery retailers, convenience stores and forecourt retailers, with these brands also profiting from their long-standing presence in the Norwegian market and thus strong consumer loyalty.

Cigarettes remains a concentrated category as the regulatory environment makes it difficult to launch new products

The competitive landscape in cigarettes remained both concentrated and stable in 2018. Philip Morris ranked second, some way behind British American Tobacco, with the only other notable manufacturers being Imperial Tobacco and Conrad Langaard.

Leading manufacturers all post a decline in volume sales in 2018

The four main cigarette manufacturers in Norway all struggled in 2018. British American Tobacco recorded a heavier volume sales decline than in both 2016 and 2017, while Philip Morris, Imperial Tobacco and Conrad Langaard all saw their sales fall following positive performances the previous year.

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