Tobacco in Canada

Tobacco in Canada

EXECUTIVE SUMMARY

Smoking prevalence continues to experience steady decline in 2018 under strict regulations and higher prices

Plain packaging regulations negatively impact tobacco companies in all categories

Competition increases in e-vapour products and heated tobacco with new brand entries and new launches

The distribution of e-vapour products and heated tobacco products sees the greatest changes in 2018

Strong growth expected in e-vapour products as vaping products with nicotine are legalised

OPERATING ENVIRONMENT

Legislation

Legislative overview
Summary 1 Legislation Summary at a Glance

Smoking prevalence

Health warnings

Plain packaging

Point-of-sale display bans

Flavoured tobacco product ban

“Reduced harm”

Vapour products

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

SOURCES

Summary 2 Research Sources

Cigarettes in Canada

HEADLINES

PROSPECTS

Government actions to reduce smoking prevalence continue to reduce demand for cigarettes

“Reduced harm” products pose a threat to traditional cigarettes as consumers switch to vaping to quit smoking or try something new

Manufacturers’ strong pricing power keeps value growth positive for cigarettes

COMPETITIVE LANDSCAPE

Players battle to maintain their volume shares of cigarettes while faced with plain and standardised packaging regulations

Imperial Tobacco Canada Ltd maintains a direct communications channel to consumers through retailer partnerships

Large players focus on revamping their products regularly to maintain their shares while smaller players rely on their niches

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 Canada

HEADLINES

PROSPECTS

Demand for cigars and cigarillos weakens as the consumer base fails to be sustained by younger generations

Cross-border purchases have a negative impact on Canadian sales of cigars and cigarillos as consumers seek cheaper and more varied products

New product development in smoking tobacco may help revive sales

COMPETITIVE LANDSCAPE

Scandinavian Tobacco Group invests in a global sales management system to support its business

McClelland Tobacco ceases production

Premium cigars enjoy more growth opportunities with annual premium launches

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 Sales of Cigarillos by Price Platform 2013-2018
Table 38 NBO Company Shares of Cigars and Cigarillos: % Volume 2014-2018
Table 39 LBN Brand Shares of Cigars and Cigarillos: % Volume 2015-2018
Table 40 NBO Company Shares of Cigars: % Volume 2014-2018
Table 41 LBN Brand Shares of Cigars: % Volume 2015-2018
Table 42 NBO Company Shares of Cigarillos: % Volume 2014-2018
Table 43 LBN Brand Shares of Cigarillos: % Volume 2015-2018
Table 44 NBO Company Shares of Smoking Tobacco: % Volume 2014-2018
Table 45 LBN Brand Shares of Smoking Tobacco: % Volume 2015-2018
Table 46 NBO Company Shares of Pipe Tobacco: % Volume 2014-2018
Table 47 LBN Brand Shares of Pipe Tobacco: % Volume 2015-2018
Table 48 NBO Company Shares of Fine Cut Tobacco: % Volume 2014-2018
Table 49 LBN Brand Shares of Fine Cut Tobacco: % Volume 2015-2018
Table 50 Distribution of Cigars and Cigarillos by Format: % Volume 2013-2018
Table 51 Distribution of Smoking Tobacco by Format: % Volume 2013-2018
Table 52 Forecast Sales of Cigars, Cigarillos and Smoking Tobacco by Category: Volume 2018-2023
Table 53 Forecast Sales of Cigars, Cigarillos and Smoking Tobacco by Category: Value 2018-2023
Table 54 Forecast Sales of Cigars, Cigarillos and Smoking Tobacco by Category: % Volume Growth 2018-2023
Table 55 Forecast Sales of Cigars, Cigarillos and Smoking Tobacco by Category: % Value Growth 2018-2023

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

HEADLINES

PROSPECTS

Decline of smokeless tobacco leads manufacturers to shift towards “reduced harm” products such as heated tobacco

Legalisation of vaping products with nicotine boosts value sales of e-vapour products in 2018

Stronger government regulation is expected to limit the growth of e-vapour products and heated tobacco products

COMPETITIVE LANDSCAPE

Iqos remains the top brand in heated tobacco products but is forced to change its shop front signage

The entry of JUUL shakes up competition in e-vapour products

Imperial Tobacco launches e-vapour products as the consumer base is seen to expand

CATEGORY INDICATORS

Table 56 Number of Adult Vapers 2013-2018

CATEGORY DATA

Table 57 Sales of Smokeless Tobacco, E-Vapour Products and Heated Tobacco by Category: Volume 2013-2018
Table 58 Sales of Smokeless Tobacco, E-Vapour Products and Heated Tobacco by Category: Value 2013-2018
Table 59 Sales of Smokeless Tobacco, E-Vapour Products and Heated Tobacco by Category: % Volume Growth 2013-2018
Table 60 Sales of Smokeless Tobacco, E-Vapour Products and Heated Tobacco by Category: % Value Growth 2013-2018
Table 61 Sales of Tobacco Heating Devices: Volume 2013-2018
Table 62 Sales of Tobacco Heating Devices: Value 2013-2018
Table 63 Sales of Heated Tobacco: Volume 2013-2018
Table 64 Sales of Heated Tobacco: Value 2013-2018
Table 65 Sales of E-Liquids by Nicotene Strength: % Value 2018
Table 66 NBO Company Shares of Smokeless Tobacco: % Volume 2014-2018
Table 67 LBN Brand Shares of Smokeless Tobacco: % Volume 2015-2018
Table 68 NBO Company Shares of E-Vapour Products: % Value 2014-2018
Table 69 LBN Brand Shares of E-Vapour Products: % Value 2015-2018
Table 70 NBO Company Shares of Tobacco Heating Devices: % Volume 2014-2018
Table 71 LBN Brand Shares of Tobacco Heating Devices: % Volume 2015-2018
Table 72 NBO Company Shares of Heated Tobacco: % Volume 2014-2018
Table 73 LBN Brand Shares of Heated Tobacco: % Volume 2015-2018
Table 74 Distribution of Smokeless Tobacco by Format: % Volume 2013-2018
Table 75 Distribution of E-Vapour Products by Format: % Value 2013-2018
Table 76 Distribution of Tobacco Heating Devices by Format: % Volume 2013-2018
Table 77 Distribution of Heated Tobacco by Format: % Volume 2013-2018
Table 78 Forecast Sales of Smokeless Tobacco, E-Vapour Products and Heated Tobacco by Category: Volume 2018-2023
Table 79 Forecast Sales of Smokeless Tobacco, E-Vapour Products and Heated Tobacco by Category: Value 2018-2023
Table 80 Forecast Sales of Smokeless Tobacco, E-Vapour Products and Heated Tobacco by Category: % Volume Growth 2018-2023
Table 81 Forecast Sales of Smokeless Tobacco, E-Vapour Products and Heated Tobacco by Category: % Value Growth 2018-2023
Table 82 Forecast Sales of Tobacco Heating Devices: Volume 2018-2023
Table 83 Forecast Sales of Tobacco Heating Devices: Value 2018-2023
Table 84 Forecast Sales of Heated Tobacco: Volume 2018-2023
Table 85 Forecast Sales of Heated Tobacco: Value 2018-2023

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