Smoking tobacco, including pipe tobacco and roll-your-own (RYO), plunged 12% in volume and 9% in current value terms to reach 530 tonnes and C$311 million in 2015. This is a continuation of the decline that has been ongoing for over a decade now. The industry was hard hit due to tax increases for RYO, making its retail price comparable to that of packaged cigarettes and hence losing much of its appeal to consumers due to its previous low-price position. Its performance in 2015 largely follows the pattern seen in 2014.
Smoking tobacco market in Canada remained highly consolidated in 2015, with the top three major players, namely Rothmans Benson & Hedges, JTI MacDonald Corp, and Imperial Tobacco Canada, claiming 49%, 12% and 9% shares of total volume sales in 2015. Thus, these three top players, also dominant brand owners in cigarettes, hold a combined share of 69% in smoking tobacco in Canada.
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This industry report originates from Passport, our Tobacco market research database.