No tax increases may be imposed in the 2015 budget, buttobacco control and anti-smoking campaigners continue to push for further increases, citing thecomparatively low tax burden, with taxes still only forming about 70.0% of prices.With a large menthol segment, the market has attracted some innovative introductions and can beexpected to continue to do so as the Hong Kong market is a sounding board and trend setter for mainlandChina.
Compared to independent figures of 8.3% - 14.0% in 2012, the tobacco industry puts the non-duty paid market as high as 41.0% in 2013. Volumes, regardless of which source is quoted, are clearly a problem. Tax increases such as that in 2014 are not going to bring about a reduction in the profile of this sector.
PMI's share grew further in the full year 2011, reaching 55.8%, increased to 57.6% in 2012, with a 58.0% share estimated for 2013. PMI is predicted to achieve 58.2% of volume sales by the end of 2014.
The 11.7% increase in excise duty in early 2014 is set to see domestic sales drop 12.3% following a period of recovery in the wake of the last major tax hike in 2011. Any further tax rises will cause volumes to fall back again but there may be intervals when taxes and prices are held again as previously.
“Cigarettes in Hong Kong”, is an analytical report by Canadean which provides extensive and highly detailed current and future market trends in the Hong Kong market.
What else does this report offer?
Market size and structure of the overall and per capita consumption based upon a unique combination of industry research, fieldwork, market sizing analysis and our in-house expertise
Detailed information such as market shares and recent developments of the manufacturers, leading brands along with company profiles
Regulations, taxation, retail pricing, smoking habit and the growing health concerns affecting overall production
Prospects and forecasts of overall sales and consumption for 2015 to 2023.
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The differing growth rates in regional product sales drive fundamental shifts in the market. This report provides detailed, authoritative data on these changes -prime intelligence for marketers.
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