Executive Summary

Jul 2019
Positive value sales for tobacco supported by rising prices due to tax hikes

Tobacco in New Zealand continued to be influenced by rising unit prices, which resulted in increasing current value growth in 2018. However, higher unit prices through increasing taxation translated into retail volume declines for most traditional tobacco categories with the exception of cigarillos.

Heated tobacco products launch in New Zealand

In March 2018, tobacco heating device IQOS from Philip Morris, gained legal status to be sold in New Zealand following litigation with the New Zealand Ministry of Health, allowing heated tobacco products including heated tobacco sticks to be sold in the country. This category is predicted to record phenomenal growth in both retail volume and current value terms, increasing from a low sales base over the forecast period, as it offers local consumers an alternative to conventional tobacco products.

Plain packaging legislation proves restrictive for tobacco players

The largest category of cigarettes continued to be highly concentrated amongst a low number of multinationals, led by the dominant British American Tobacco (New Zealand) Ltd, and followed by Imperial Tobacco New Zealand Ltd and Philip Morris (New Zealand) Ltd. All major players suffered declining retail volume sales in line with the performance of cigarettes in 2018.

Supermarkets continue to gain share across many tobacco categories

Supermarkets continued to gain share as a distribution channel in a number of tobacco categories including cigarettes, smoking tobacco, and e-vapour products in 2018. The latter was supported by Progressive Enterprises stocking e-vapour products including e-liquids in a limited number of its Countdown supermarkets earlier in the year.

Strong demand for smoking alternatives to drive growth over forecast period

Tobacco is predicted to continue to record high current value growth over the forecast period, driven by increasing unit prices due to annual tax hikes in an attempt by the government to encourage a higher number of consumers to quit smoking.

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Tobacco in New Zealand

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Overview

Discover the latest market trends and uncover sources of future market growth for the Tobacco industry in New Zealand 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 New Zealand, 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 New Zealand for free:

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

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 New Zealand

EXECUTIVE SUMMARY

Positive value sales for tobacco supported by rising prices due to tax hikes
Heated tobacco products launch in New Zealand
Plain packaging legislation proves restrictive for tobacco players
Supermarkets continue to gain share across many tobacco categories
Strong demand for smoking alternatives to drive growth over forecast period

OPERATING ENVIRONMENT

Legislation
Legislative overview
Summary 1 Legislation Summary at a Glance
Minimum legal smoking age
Smoking prevalence
Tar levels
Health warnings
Plain packaging
Point-of-sale display bans
Smoking in public places
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

Cigars, Cigarillos and Smoking Tobacco in New Zealand

HEADLINES

PROSPECTS

Affordable cigarillos strongest performer in retail volume terms
Niche category of cigars mainly appeals to affluent consumers
Lack of innovation for pipe tobacco, while fine cut records strongest volume decline

COMPETITIVE LANDSCAPE

Positive performers within declining fine cut tobacco
In line with its stronger growth, cigarillos sees impressive performances
Consumers look to economy brands to make savings

CATEGORY DATA

Table 10 Sales of Cigars, Cigarillos and Smoking Tobacco by Category: Volume 2013-2018
Table 11 Sales of Cigars, Cigarillos and Smoking Tobacco by Category: Value 2013-2018
Table 12 Sales of Cigars, Cigarillos and Smoking Tobacco by Category: % Volume Growth 2013-2018
Table 13 Sales of Cigars, Cigarillos and Smoking Tobacco by Category: % Value Growth 2013-2018
Table 14 Sales of Cigars by Size: % Volume 2013-2018
Table 15 NBO Company Shares of Cigars and Cigarillos: % Volume 2014-2018
Table 16 LBN Brand Shares of Cigars and Cigarillos: % Volume 2015-2018
Table 17 NBO Company Shares of Cigars: % Volume 2014-2018
Table 18 LBN Brand Shares of Cigars: % Volume 2015-2018
Table 19 NBO Company Shares of Cigarillos: % Volume 2014-2018
Table 20 LBN Brand Shares of Cigarillos: % Volume 2015-2018
Table 21 NBO Company Shares of Smoking Tobacco: % Volume 2014-2018
Table 22 LBN Brand Shares of Smoking Tobacco: % Volume 2015-2018
Table 23 NBO Company Shares of Pipe Tobacco: % Volume 2014-2018
Table 24 LBN Brand Shares of Pipe Tobacco: % Volume 2015-2018
Table 25 NBO Company Shares of Fine Cut Tobacco: % Volume 2014-2018
Table 26 LBN Brand Shares of Fine Cut Tobacco: % Volume 2015-2018
Table 27 Distribution of Cigars and Cigarillos by Format: % Volume 2013-2018
Table 28 Distribution of Smoking Tobacco by Format: % Volume 2013-2018
Table 29 Forecast Sales of Cigars, Cigarillos and Smoking Tobacco by Category: Volume 2018-2023
Table 30 Forecast Sales of Cigars, Cigarillos and Smoking Tobacco by Category: Value 2018-2023
Table 31 Forecast Sales of Cigars, Cigarillos and Smoking Tobacco by Category: % Volume Growth 2018-2023
Table 32 Forecast Sales of Cigars, Cigarillos and Smoking Tobacco by Category: % Value Growth 2018-2023

Smokeless Tobacco, E-Vapour Products and Heated Tobacco in New Zealand

HEADLINES

PROSPECTS

Nicotine e-vapour products set to emerge over forecast period
Smokeless tobacco remains prohibited in New Zealand
Phenomenal growth predicted for heated tobacco after being declared legal in 2018

COMPETITIVE LANDSCAPE

New leadership for e-vapour products in 2018
Significant investment in heated tobacco to reap rewards for Philip Morris
Positive sales for closed vaping systems niche

CATEGORY INDICATORS

Table 33 Number of Adult Vapers 2013-2018

CATEGORY DATA

Table 34 Sales of Smokeless Tobacco, E-Vapour Products and Heated Tobacco by Category: Value 2013-2018
Table 35 Sales of Smokeless Tobacco, E-Vapour Products and Heated Tobacco by Category: % Value Growth 2013-2018
Table 36 Sales of Tobacco Heating Devices: Volume 2013-2018
Table 37 Sales of Tobacco Heating Devices: Value 2013-2018
Table 38 Sales of Heated Tobacco: Volume 2013-2018
Table 39 Sales of Heated Tobacco: Value 2013-2018
Table 40 Distribution of E-Vapour Products by Format: % Value 2013-2018
Table 41 Forecast Sales of Smokeless Tobacco, E-Vapour Products and Heated Tobacco by Category: Value 2018-2023
Table 42 Forecast Sales of Tobacco Heating Devices: Volume 2018-2023
Table 43 Forecast Sales of Tobacco Heating Devices: Value 2018-2023
Table 44 Forecast Sales of Heated Tobacco: Volume 2018-2023
Table 45 Forecast Sales of Heated Tobacco: Value 2018-2023

Cigarettes in New Zealand

HEADLINES

PROSPECTS

Stronger retail volume decline due to rising prices in 2018
New regulations restrict differentiation for cigarette producers
Government efforts to reduce smoking appear to be effective

COMPETITIVE LANDSCAPE

Philip Morris to withdraw from cigarettes to focus on heated tobacco products
Mixed results for dominant leader British American Tobacco
Increasing number of economy brands likely to emerge over forecast period

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 46 Sales of Cigarettes: Volume 2013-2018
Table 47 Sales of Cigarettes by Category: Value 2013-2018
Table 48 Sales of Cigarettes: % Volume Growth 2013-2018
Table 49 Sales of Cigarettes by Category: % Value Growth 2013-2018
Table 50 Sales of Cigarettes by Blend: % Volume 2013-2018
Table 51 Sales of Cigarettes by Standard/Menthol/Capsule: % Volume 2013-2018
Table 52 Sales of Cigarettes by Regular/Slim/Superslim/Microslim: % Volume 2013-2018
Table 53 Sales of Cigarettes by Pack Size: % Volume 2013-2018
Table 54 Sales of Cigarettes by Price Band: % Volume 2013-2018
Table 55 NBO Company Shares of Cigarettes: % Volume 2014-2018
Table 56 LBN Brand Shares of Cigarettes: % Volume 2015-2018
Table 57 Sales of Cigarettes by Distribution Format: % Volume 2013-2018
Table 58 Illicit Trade Estimate of Cigarettes: Volume 2013-2018
Table 59 Forecast Sales of Cigarettes: Volume 2018-2023
Table 60 Forecast Sales of Cigarettes by Category: Value 2018-2023
Table 61 Forecast Sales of Cigarettes: % Volume Growth 2018-2023
Table 62 Forecast Sales of Cigarettes by Category: % Value Growth 2018-2023
Table 63 Forecast Sales of Cigarettes by Blend: % Volume 2018-2023
Table 64 Forecast Sales of Cigarettes by Standard/Menthol/Capsule: % Volume 2018-2023
Table 65 Forecast Sales of Cigarettes by Regular/Slim/Superslim/Microslim: % Volume 2018-2023
Table 66 Forecast Sales of Cigarettes by Pack Size: % Volume 2018-2023
Table 67 Forecast Sales of Cigarettes by Price Band: % Volume 2018-2023