Executive Summary

Jul 2019
Australian tobacco players continue to face tough operating environment

The tobacco industry in Australia continues to suffer from stringent regulations and increasing taxation, resulting in a strong decline in retail volume sales. On the other hand, current value growth remains positive, with sales being boosted by strong increases in unit prices.

Taxation increases impacting demand within smoking tobacco

As a result of recent tax changes, the price of cigars, cigarillos and fine cut tobacco continues to rise strongly, with tobacco in Australia set to become even more expensive for consumers over the next few years. Indeed, annual excise increases of 12.

Multinationals continue to dominate and innovate in an adverse trading environment

Multinationals remain the leading players within tobacco in Australia, with British American Tobacco (BAT), Imperial Tobacco and Philip Morris dominating sales. BAT’s success can be attributed to the popularity of its Winfield and Rothmans brands, while Imperial Tobacco continues to benefit from the strong performance of its economy-priced John Player Special brand.

Supermarkets continue to lead distribution, but tobacco specialists and internet retailers hold appeal for certain products

Supermarkets remains the leading distribution channel for tobacco in Australia, accounting for more than half of overall value sales. Indeed, supermarkets is the leading distribution channel for both cigarettes and smoking tobacco, with Australian consumers appreciating competitive prices and convenience.

Slowing growth due to increasing consumer price sensitivity

Cigarettes is expected to see slower value growth over the forecast period as smoking is becoming increasingly unaffordable, leading to a further decline in smoking prevalence and overall volume sales. In addition to tobacco excise increases, more restrictions on where smokers can consume tobacco products and the government’s ongoing strong stance against tobacco and vapour products have led to a fall in social acceptance of smoking.

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Tobacco in Australia

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Overview

Discover the latest market trends and uncover sources of future market growth for the Tobacco industry in Australia 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 Tobacco industry in Australia, our research will save you time and money while empowering you to make informed, profitable decisions.

When you purchase this report, you also get the data and the content from these category reports in Australia for free:

The Tobacco in Australia 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 by origin, exports by destination
  • Robust and transparent market research methodology, conducted in-country

Our market research reports answer questions such as:

  • What is the market size of Tobacco in Australia?
  • What are the major brands in Australia?
  • Which sector of the tobacco products market is the largest by value sales in Australia?
  • Which sector of the tobacco products market has been growing the fastest, by volume and value, in Australia?
  • Which sector is the most heavily taxed in Australia?
  • Which companies dominate in the total tobacco market in Australia in terms of market share?
  • What is the distribution channel split for the tobacco products market in Australia?

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.

Tobacco in Australia

EXECUTIVE SUMMARY

Australian tobacco players continue to face tough operating environment
Taxation increases impacting demand within smoking tobacco
Multinationals continue to dominate and innovate in an adverse trading environment
Supermarkets continue to lead distribution, but tobacco specialists and internet retailers hold appeal for certain products
Slowing growth due to increasing consumer price sensitivity

OPERATING ENVIRONMENT

Legislation
Legislative overview
Summary 1 Legislation Summary at a Glance
Minimum legal smoking age
Smoking prevalence
Plain packaging
Advertising and sponsorship
Advertising through media (television, radio, billboards, consumer press, trade press, cinema, etc)
Advertising through retail point-of-sale
Sponsorship of sporting/music events
Point-of-sale display bans
Smoking in public places
Flavoured tobacco product ban
“Reduced harm”
Vapour products
Electronic cigarettes

PRODUCTION/IMPORTS/EXPORTS

MARKET INDICATORS

Table 1 Number of Adult Smokers by Gender 2013-2018

MARKET DATA

Table 2 Sales of Tobacco by Category: Volume 2013-2018
Table 3 Sales of Tobacco by Category: Value 2013-2018
Table 4 Sales of Tobacco by Category: % Volume Growth 2013-2018
Table 5 Sales of Tobacco by Category: % Value Growth 2013-2018
Table 6 Forecast Sales of Tobacco by Category: Volume 2018-2023
Table 7 Forecast Sales of Tobacco by Category: Value 2018-2023
Table 8 Forecast Sales of Tobacco by Category: % Volume Growth 2018-2023
Table 9 Forecast Sales of Tobacco by Category: % Value Growth 2018-2023

DEFINITIONS

SOURCES

Summary 2 Research Sources

Cigarettes in Australia

HEADLINES

PROSPECTS

Rising prices fuel shift towards economy brands
Unit price increases allow for positive growth
Strong concerns over illicit trade

COMPETITIVE LANDSCAPE

Focus on new innovative developments to attract consumers
British American Tobacco remains in pole position
Focus on value offerings attracting price sensitive consumers

TAXATION AND PRICING

Taxation rates
Summary 3 Taxation and Duty Levies 2013-2018
Average cigarette pack price breakdown
Summary 4 Average Cigarette Pack Price Breakdown: Brand Examples

CATEGORY DATA

Table 10 Sales of Cigarettes: Volume 2013-2018
Table 11 Sales of Cigarettes by Category: Value 2013-2018
Table 12 Sales of Cigarettes: % Volume Growth 2013-2018
Table 13 Sales of Cigarettes by Category: % Value Growth 2013-2018
Table 14 Sales of Cigarettes by Blend: % Volume 2013-2018
Table 15 Sales of Cigarettes by Standard/Menthol/Capsule: % Volume 2013-2018
Table 16 Sales of Cigarettes by Regular/Slim/Superslim/Microslim: % Volume 2013-2018
Table 17 Sales of Cigarettes by Pack Size: % Volume 2013-2018
Table 18 Sales of Cigarettes by Price Band: % Volume 2013-2018
Table 19 NBO Company Shares of Cigarettes: % Volume 2014-2018
Table 20 LBN Brand Shares of Cigarettes: % Volume 2015-2018
Table 21 Sales of Cigarettes by Distribution Format: % Volume 2013-2018
Table 22 Illicit Trade Estimate of Cigarettes: Volume 2013-2018
Table 23 Forecast Sales of Cigarettes: Volume 2018-2023
Table 24 Forecast Sales of Cigarettes by Category: Value 2018-2023
Table 25 Forecast Sales of Cigarettes: % Volume Growth 2018-2023
Table 26 Forecast Sales of Cigarettes by Category: % Value Growth 2018-2023
Table 27 Forecast Sales of Cigarettes by Blend: % Volume 2018-2023
Table 28 Forecast Sales of Cigarettes by Standard/Menthol/Capsule: % Volume 2018-2023
Table 29 Forecast Sales of Cigarettes by Regular/Slim/Superslim/Microslim: % Volume 2018-2023
Table 30 Forecast Sales of Cigarettes by Pack Size: % Volume 2018-2023
Table 31 Forecast Sales of Cigarettes by Price Band: % Volume 2018-2023

Cigars, Cigarillos and Smoking Tobacco in Australia

HEADLINES

PROSPECTS

Rising taxes fuelling shift to fine cut tobacco
Launch of new innovative products help to attract consumers
Demand for cigars and cigarillos hit by price hikes

COMPETITIVE LANDSCAPE

Imperial Tobacco continues to dominate smoking tobacco
Affordable prices solidify Scandinavian Tobacco Group’s lead
Rising health awareness and price sensitivity fuelling shift away from cigarettes

CATEGORY DATA

Table 32 Sales of Cigars, Cigarillos and Smoking Tobacco by Category: Volume 2013-2018
Table 33 Sales of Cigars, Cigarillos and Smoking Tobacco by Category: Value 2013-2018
Table 34 Sales of Cigars, Cigarillos and Smoking Tobacco by Category: % Volume Growth 2013-2018
Table 35 Sales of Cigars, Cigarillos and Smoking Tobacco by Category: % Value Growth 2013-2018
Table 36 Sales of Cigars by Size: % Volume 2013-2018
Table 37 NBO Company Shares of Cigars and Cigarillos: % Volume 2014-2018
Table 38 LBN Brand Shares of Cigars and Cigarillos: % Volume 2015-2018
Table 39 NBO Company Shares of Cigars: % Volume 2014-2018
Table 40 LBN Brand Shares of Cigars: % Volume 2015-2018
Table 41 NBO Company Shares of Cigarillos: % Volume 2014-2018
Table 42 LBN Brand Shares of Cigarillos: % Volume 2015-2018
Table 43 NBO Company Shares of Smoking Tobacco: % Volume 2014-2018
Table 44 LBN Brand Shares of Smoking Tobacco: % Volume 2015-2018
Table 45 NBO Company Shares of Pipe Tobacco: % Volume 2014-2018
Table 46 LBN Brand Shares of Pipe Tobacco: % Volume 2015-2018
Table 47 NBO Company Shares of Fine Cut Tobacco: % Volume 2014-2018
Table 48 LBN Brand Shares of Fine Cut Tobacco: % Volume 2015-2018
Table 49 Distribution of Cigars and Cigarillos by Format: % Volume 2013-2018
Table 50 Distribution of Smoking Tobacco by Format: % Volume 2013-2018
Table 51 Forecast Sales of Cigars, Cigarillos and Smoking Tobacco by Category: Volume 2018-2023
Table 52 Forecast Sales of Cigars, Cigarillos and Smoking Tobacco by Category: Value 2018-2023
Table 53 Forecast Sales of Cigars, Cigarillos and Smoking Tobacco by Category: % Volume Growth 2018-2023
Table 54 Forecast Sales of Cigars, Cigarillos and Smoking Tobacco by Category: % Value Growth 2018-2023

Smokeless Tobacco, E-Vapour Products and Heated Tobacco in Australia

HEADLINES

PROSPECTS

Ban on vapour products remains in place
Australians remain open to vaping
Growth slows as vapour products matures

COMPETITIVE LANDSCAPE

Inconsistent regulation of vapour products fuels confusion
Leading brands losing sales share
Internet retailers continue to dominate distribution but losing sales share

CATEGORY INDICATORS

Table 55 Number of Adult Vapers 2013-2018

CATEGORY DATA

Table 56 Sales of Smokeless Tobacco, E-Vapour Products and Heated Tobacco by Category: Value 2013-2018
Table 57 Sales of Smokeless Tobacco, E-Vapour Products and Heated Tobacco by Category: % Value Growth 2013-2018
Table 58 Forecast Sales of Smokeless Tobacco, E-Vapour Products and Heated Tobacco by Category: % Value Growth 2018-2023