Cigarettes in PhilippinesSummary
Conditions for the future development of the Philippine cigarette market are in theory good. GDP growth has recently been its strongest since the 1950s with output expanding by 6.1% in 2014. Theoretically, such a buoyant economy should benefit consumer expenditure although in the case of cigarettes it has been changes to excise taxes which have been more important. As part of the tax reforms, the level at which tax is applied is set to progressively rise until 2017. These changes look set to help international companies and new entrants in particular.
A shift towards lower-priced brands, with down trading helping to sustain overall demand, has been a feature recently, this type of cigarette accounting for 71.0% of sales in 2013. High and medium priced brands have seen their share of sales decline in the face of rising prices. They accounted for 19.0% and 10.0% of the market respectively in 2013.
The domestic cigarette market is controlled by PMI following its 2010 merger with Fortune Tobacco. The combined company accounted for 92.8% of the market in 2010, 94.0% of sales in 2011 but a reduced 79.4% in 2013. JTI licensed brands are reported to account for around 3.2% of the market currently.
With major tax hikes expected between 2013 and 2017, prices will continue to rise and sales will be hit as a result. Per capita consumption is forecast to contract by 26.5% between 2013 and 2023.Duty paid sales over the same period is set decline at a rate of 13.0%.
“Cigarettes in Philippines”, is an analytical report by Canadean which provides extensive and highly detailed current and future market trends in the Philippine 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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