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Smoking Tobacco in Australia, 2019

Smoking Tobacco in Australia, 2019

Summary

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

Scope

  • Production of smoking tobacco in Australia is in the hands of the two main global manufacturers, BAT and Imperial Tobacco.
  • BAT announced further development in the sector, stating it was looking at offering make-your-own (MYO) tobacco as a way of tackling the illegal chop-chop sector.
  • The overall incidence of tobacco smoking among adults was 14.9% in 2016. This compares with 18% in 2010 and 29.5% in 1991.
  • 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.
Reasons to buy
  • Get a detailed understanding of consumption to align your sales and marketing efforts with the latest trends in the market.
  • Identify the areas of growth and opportunities, which will aid effective marketing planning.
  • 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.
  • Understand the market dynamics and essential data to benchmark your position and to identify where to compete in the future.


Introduction
Executive summary
Definitions
Market context
Tobacco products market, %, 2008 & 2018
Tobacco products market, tons, 2008-2018
Market size and structure
Consumption of smoking tobacco, tons, 2008-2018
Per capita consumption of smoking tobacco, grams per year, 2008-2018
Market segmentation by FCT and pipe tobacco, 2008-2018
Cigarette consumption, manufactured v FCT, 2008-2018
Production and trade
Imports, tons, 2007-2017
Imports by country of origin, %, 2017
Imports of smoking tobacco, volume, 2007-2017
Imports of smoking tobacco, % volume, 2007-2017
Exports, tons, 2007-2017
Exports by country of destination, %, 2017
Taxation and retail prices
Smoking Tobacco: duty/excise rates 2008-2018
Retail price list, A$ per pack, 2010-2016
FCT - Retail Price List (Victoria), A$ Per Pack, 2018
Pipe tobacco - retail price list, A$ per pack, 2017
Manufacturers and brands
Manufacturer shares, volume, %, 2017
Fine cut tobacco: Manufacturer shares, volume, %, 2011-2017
Fine cut tobacco: Brand family shares, volume, %, 2010-2017
Company profiles
The smoking population
Adults smoking prevalence, daily and occasional, %, 1991 to 2016
Adult smoking prevalence, total and by gender and territory, %, 2013 (daily consumers)
Smoking prevalence among regular smokers, by age and gender, 2016
Operating constraints
Advertising restrictions
Heath warnings and labeling requirements
Other restrictions
Distribution
FCT sales through the grocery sector, 2001-2012
FCT sales by channel, 2008/09-2017, % volume
FCT Sales by Pack Size, 2015-17, % Volume
Prospects and forecasts
Fine cut tobacco consumption, tons, 2018-2028
Per capita consumption, grams per year, 2018-2028
Appendix

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