Cigarettes and Smoking Cessation Aids - US

Published by: Mintel International Group Ltd.

Published: Mar. 1, 2008 - 91 Pages

Table of Contents

SCOPE AND THEMES

What you need to know

Definition

Data sources

Sales data

Consumer survey data

Abbreviations and terms

Abbreviations

Terms

EXECUTIVE SUMMARY

Cigarette market remains strong, despite legislation, social mores

Cessation market tiny relative to cigarette market

Retailing separately not beneficial to NRT sales

Convenience stores main retail location, followed by tobacco stores

Hard to compete with big tobacco companies

GlaxoSmithKline dominates smoking cessation market

Product innovation directly addresses increased difficulty of lighting up

MARKET SIZE AND FORECAST—TOBACCO PRODUCTS

Key points

Smoking rates stabilize

Cost drives the market for cigarettes down

Smoking fewer cigarettes means less sales

Smoking habits follow trends set by legislation

Strong potential for growth in NRTs, smokeless tobacco

Figure 1: Total U.S. sales and forecast of cigarettes and tobacco products, at current prices, 2003-10

Figure 2: Total U.S. sales and forecast of cigarettes and tobacco products, at constant prices, 2003-10

MARKET SIZE AND FORECAST—CESSATION PRODUCTS

Key points

Are NRTs effective as a cessation aid?

Continued increase in cigarette prices should benefit cessation aids

Chronic use benefits market

Figure 3: U.S. FDMx sales and forecast of smoking cessation products, at current prices, 2003-11

Figure 4: U.S. FDMx sales and forecast of smoking cessation products, at current prices and constant prices,

2003-11

COMPETITIVE CONTEXT

Smokeless cigarettes and nicotine delivery systems

Zyban (buproprion/Wellbutrin)

Figure 5: Brand of smoking cessation aid used, 2003 and 2007

Non-product-based methods of quitting smoking

SEGMENT PERFORMANCE—OVERVIEW

Key points

Tobacco segment performance

New products and private label cannibalize sales, rather than adding to them

Smokers have an oral fixation, as it turns out

Figure 6: FDMx sales of cessation products, by segment, 2003-07

Figure 7: FDMx sales of cessation product, by segment, 2005 and 2007

RETAIL CHANNELS

Key points

Promotion affects retail distribution of cigarettes

Consumers perceive smoking cessation aids as a pharmaceutical

Competition from Internet, black market sales

Figure 8: Cigarette sales, by retail channel, 2003 and 2007

RETAIL CHANNELS—C-STORES

Key points

Convenience and price make c-stores/gas stations the leading distribution outlet

Price

Figure 9: Convenience store sales of cigarettes and tobacco products, at current prices, 2003-07

Figure 10: Convenience store sales of cigarettes and tobacco products, at constant prices, 2003-07

RETAIL CHANNELS—TOBACCO STORES

Key points

Quality and selection important to today’s smoker

Internet necessary for tobacco store success

Figure 11: Tobacco store sales of cigarettes and tobacco products, at current prices, 2003-07

Figure 12: Tobacco store sales of cigarettes and tobacco products, at constant prices, 2003-07

MARKET DRIVERS

Health-concerned city and state policies make smoking difficult

Figure 13: Attitudes towards smoking legislation, January 2008

Corporate wellness programs

Reward and punishment

LEADING COMPANIES

Key points

Philip Morris carries over half the market

Figure 14: FDMx sales of leading tobacco and anti-smoking companies, 2006 and 2007

BRAND SHARE—CIGARETTES AND OTHER TOBACCO PRODUCTS

Key points

If I’m going to do it, I might as well do it up

New lines, new campaigns bolster Camel sales

Newport aided by popularity in urban market

Brand awareness stronger than manufacturer awareness

Figure 15: FDMx brand sales of cigarettes and tobacco products in the U.S., 2006 and 2007

Lighter smokers spend more per pack

Figure 16: Branded or private label cigarette smoked, by daily cigarette consumption, May 2006-June 2007

BRAND SHARE—SMOKING CESSATION PRODUCTS

Key points

Private label continues to gain ground

Figure 17: FDMx brand sales of nicotine replacement treatments, 2006 and 2007

BRAND QUALITIES—CHANGES FOR CAMEL, MARLBORO, KOOL

Overview

Camel chases women

Marlboro Smooth takes aim at Newport and Kool

Kool XL targets younger smokers

Waiting for the black market to sour

INNOVATION AND INNOVATORS

Key points

Marlboro offers up a quicker fix

Invasion of the potentially reduced-exposure products

Smokeless Snus

ADVERTISING AND PROMOTION

Regulated environment favors discounts and sponsorships

Online promotions limited to consumers with substantial initiative

Figure 18: Ad spending by tobacco and anti-smoking brands, 2005 and 2006

Marlboro continues to forego traditional avenues of promotion

Camel backs down from print ads

GlaxoSmithKline

NicoDerm

Figure 19: TV ad for GlaxoSmithKline’s NicoDerm CQ nicotine patch, 2008

Nicorette

Figure 20: TV ad for GlaxoSmithKline’s Nicorette Anti-smoking gum, 2007

Commit

Figure 21: TV ad for GlaxoSmithKline’s Commit anti-smoking lozenges, cherry flavor, 2007

Figure 22: TV ad for GlaxoSmithKline’s Commit anti-smoking lozenges, mint flavor, 2007

Figure 23: TV ad for GlaxoSmithKline’s Commit anti-smoking lozenges, 2007

SMOKING HABITS AND HISTORY

Two thirds of current regular smokers have tried to quit

Figure 24: Smoker status, by age, January 2008

Incidence of smoking

Figure 25: Cigarette smoking, 2001 and 2007

Figure 26: Usage of cigarettes, by age, May 2006-June 2007

EFFORTS TO QUIT SMOKING

Usage of nicotine replacement therapy products

Figure 27: Use of anti-smoking products in the previous year, 2001 and 2007

Vast majority of current smokers have tried to quit multiple times

Figure 28: Number of quit smoking attempts, by smoker status, January 2008

PRODUCTS USED IN EFFORTS TO QUIT SMOKING

“Cold turkey” remains the most popular quitting method

Figure 29: Type of anti-smoking product tried in last 12 months, by daily cigarette consumption, May 2006-June

2007

Cessation methods compared between all attempts and successful attempts

Figure 30: Ways of trying to quit smoking, by attempt, January 2008

Private label drives increased usage of nicotine gum

Figure 31: Method tried to quit smoking in previous year, 2001 and 2007

FREQUENCY OF CIGARETTE USAGE

Figure 32: Number of cigarettes smoked per day, 2001 and 2007

Men who smoke average two more cigarettes per day than women

Figure 33: Number of cigarettes smoked daily, by gender, May 2006-June 2007

Older smokers and whites should be targeted for cessation products

Figure 34: Number of cigarettes smoked daily, by age, May 2006-June 2007

Figure 35: Number of cigarettes smoked daily, by race/ethnicity, May 2006-June 2007

Targeting spouses and the gift market for cessation aids

Figure 36: Number of cigarettes smoked daily, by marital status, May 2006-June 2007

RACE AND ETHNICITY

Figure 37: Smoking, by race/ethnicity, 2003 and 2007

Figure 38: Attitudes towards smoking-related illness, by race/ethnicity, January 2008

Menthol use rising due to the increased importance of black smokers

Figure 39: Type of cigarette smoked, 2003 and 2007

ATTITUDES AND MOTIVATIONS REGARDING SMOKING

Introduction

Compromise solutions and addiction as an illness

Figure 40: Smoking/quitting, compromise solutions, and opinions on addiction as an illness, January 2008

More than one in three current smokers have never considered long-term health impacts

Figure 41: Expected outcome of smoking habit, January 2008

You get what you pay for

Figure 42: Existence of favorite brand and interest in quality, January 2008

Striking interest in better-for-you product

Figure 43: Attitudes towards making choices of what to smoke, January 2008

Figure 44: Attitudes towards quitting smoking, January 2008

Why the majority of current smokers will not try NRTs

Figure 45: Attitudes towards cessation aids, January 2008

REASONS FOR SMOKING

Smokers start young

Calming the nerves

Nicotine addiction may be a symptom of a larger psychiatric problem

Smoking may be a symptom of a larger health problem

Figure 46: Usage of cigarettes, by ailment, January 2008

Figure 47: General attitudes and behaviors around smoking, January 2008

APPENDIX: TRADE ASSOCIATIONS

Abstract

• Where should manufacturers turn for revenue growth?
• How health concerns are affecting the market, and where they offer potential for growth.
• The impact of increased competition offering nicotine delivery.
• How legislation affects the market.
• How retailers can increase sales, and how manufacturers can benefit from creative retail choices.

• How the number of smokers and the amount they are smoking is changing, and why.
• What is the primary deterrent to smoking cessation aid usage?
• What motivates changes in cigarette and NRT brand?
• How various demographics differ in attitudes towards cigarettes and quitting smoking.

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