Smoking Tobacco in Australia, 2019
The overall incidence of tobacco smoking among adults was 14.9% in 2016. This compares with 18% in 2010 and 29.5% in 1991. Smoking among males is most prevalent in the 25-29 age bracket, where 19.3% are daily smokers. Female smoking is also the most common in this age group, where 16.9% are daily smokers.
The Australian market for tobacco products is in long-term decline. In 2018, smoking tobacco accounted for 15.3% of all tobacco consumption, up from 6.8% in 2008. FCT dominates the wider smoking tobacco market, accounting for 99.7% of sector sales in 2018. Demand for pipe tobacco has more than halved since 1990, to only seven tons in 2018.
Despite the prospect of rising prices, the smoking tobacco sector is set to benefit from falling cigarette sales, which are forecast to drop by 32.5% between 2018 and 2028. By 2028, smoking tobacco sales are predicted to stand at 2,100 tons, 3.4% down on 2018 levels, but performing considerably better than cigarettes. Per capita consumption of smoking tobacco is set to drop by 11.9% over the same period to 81.7g in 2028.
Since 2014, the popularity of smoking tobacco has been growing, with legal intake at 93g in 2018. In addition to the 2,182 tons of smoking tobacco consumed in 2018, there is a considerable amount of “chop-chop” or illegal loose tobacco available to consumers. Total unbranded tobacco sales were estimated at 1,100 tons in 2017. Combined consumption of FCT cigarettes and FMC in 2018 was 14,719 million pieces.
Production of smoking tobacco in Australia is in the hands of the two main global manufacturers, BAT and Imperial Tobacco. Imports from 2000 to 2013 record a degree of fluctuation in volume terms. Volumes in 2011 grew by 193.5%, only to fall by 78% in 2012, and they have continued falling since, to 2,272 tons in 2017. Exports were expanding rapidly up until 2007 but have fallen back sharply. In 2017, exports were only 88 tons.
The three leading brands in 2017 were Champion (Imperial) with 21%, JPS (Imperial) with 18.6%, and Winfield (BAT) with 16.8%. Two manufacturers dominate the FCT tobacco sector, as of 2017: Imperial with 53.2% and BAT with 28.5%. Their dominance was initially assisted by the withdrawal of PMI from the sector in 2003, with the company having had a share of over 6%. PMI has since re-entered the market and grew to capture 17.9% in 2017.
Smoking Tobacco in Australia, 2019, is an analytical report provides extensive and highly detailed current and future market trends in the Australian tobacco market. It covers market size and structure along with per capita and overall consumption. Additionally, it focuses on brand data, retail pricing, prospects, and forecasts for sales and consumption until 2028.
Companies mentioned: Imperial Tobacco, BAT Australia, Philip Morris, Richland Express, Scandinavian Tobacco, and others
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