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Smoking Tobacco in Italy, 2019

Smoking Tobacco in Italy, 2019

Summary

The Italian tobacco products market is large. Total tobacco sales are forecast at 74,013 tons in 2018 which is 21.2% down on their level in 2008. Manufactured cigarettes dominate the market. Volume sales amounted to 67,900 tons in 2018, equivalent to 91.7% of the total market. Smoking tobacco is the largest of the other sectors with its importance growing as it has staked out its position as the main alternative to cigarettes. Accounting for 1.2% of volumes in 2018 it has grown its share to 5.9% in 2018.

FCT has long been the larger and more dynamic sector within the market taking 98.4% of sector sales in 2017, up from 70% in 1992. Volumes have recently been expanding as a direct consequence of taxation changes. Smoking tobacco sales have expanded during the past two decades with a strong upward trend evident since 2003, following a period of stagnating sales. However, this sector is also being hit by rising prices. Forecasts for 2018 are for a further, 5.2%, rise in volumes to 4,350 tons.

Production stood at 236 tons in 1990, but dropped to 52 tons by 2007. Although increases were recorded in 2007 and 2008, to 75.5 tons, they fell to 50 tons in 2009, and fell further to only 30 tons in 2014. As in a number of other European markets, smoking tobacco taxation in Italy comprises of an ad valorem excise duty and a general value added tax IVA (VAT) at 22%. An additional minimum duty of €120/kg is also applicable for fine cut as of 2018.

The tobacco market saw major changes with the privatisation of state-owned organisation, ETI, acquired by BAT in 2003. This led to the internationalization of the smoking tobacco sector. Together with the growing presence of brands from PMI, Imperial Tobacco, and JTI/Gallaher, the market is now dominated by multinationals. Boosted by the success of Chesterfield and Marlboro, PMI leads with 37.0% in 2017. JTI (26.2%), Pöschl (14.5%), and BAT (11.0%) are also notable.

Volumes are forecast to increase from 4,280 tons in 2018 to reach 5,000 tons by 2023/24 before falling back to 4,780 tons in 2028. In per capita terms, this is equivalent to an increase from 68.8g in 2018 to 79.9g in 2023/24 followed by a fall to 76.2g per annum in 2028. As of 2017, 58.6% of the current smoking population is male and 41.4% is female. There were an estimated 6.5 million adult male smokers and 4.6 million adult female smokers in 2017.

The FCT market is expected to see growth in the short- to medium-term, but will then fall back despite more consumers moving into this market from the cigarette sector as cigarette prices continue to rise.

Smoking Tobacco in Italy, 2019, is an analytical report that provides extensive and highly detailed current and future market trends in the Italian 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: PMI, Pöschl, JTI/Gallaher, Imperial Tobacco, BAT, Reynolds American, Heintz van Landewyck

Scope

  • Smoking tobacco sales have expanded during the past two decades with a strong upward trend evident since 2003, following a period of stagnating sales.
  • FCT has long been the larger and more dynamic sector within the market taking 98.4% of sector sales in 2017, up from 70% in 1992.
  • As in a number of other European markets, smoking tobacco taxation in Italy comprises of an ad valorem excise duty and a general value added tax IVA (VAT) at 22%.
  • The FCT market is expected to see growth in the short- to medium-term, but will then fall back despite more consumers moving into this market from the cigarette sector as cigarette prices continue to rise.
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
Smoking Tobacco Consumption, Tons, 2008-2018
Per Capita Consumption (Grams per Year), 2008-2018
Smoking Tobacco: Market Segmentation, 2008-2018
FCT by Format by Sales, %, 2010-2015
Natural Tobacco, Sales, %, 2008-2015
Fine-Cut-Tobacco by Pack Size, %, 2012 - 2014
Cigarette Consumption: Manufactured v FCT, 2008-2018
Production and trade
Production (Tons), 2005-2014
Imports (Tons), 2007-2017
Imports by Country of Origin, Top Countries by Volume (%), 2017
Imports by Country of Origin by Volume (Tons), 2007-2017
Imports by Country of Origin by Value, (€ ’000), 2007-2017
Exports (Tons), 2007-2017
Exports by Country of Destination, Top Countries by Volume (%), 2017
Exports by Country of Destination, Volume, Tons, 2007-2017
Exports by Country of Destination, Value, (€ ’000), 2007-2017
Taxation and retail prices
Structure of Taxation: FCT v Manufactured Cigarettes, 2018
EU: fine cut tobacco, tax incidence comparison, 2018
Retail Price List, € per pack, 2018
Manufacturers and brands
FCT: Manufacturer shares, volume, %, 2007-2017
FCT: Brand family shares, volume, %, 2003-2013
Company profiles
The smoking population
Adult smoking prevalence, total and by gender, 2007-2017
Smoking Prevalence Among Men and Women, by Age, %, 2008 & 2013
Smoking Prevalence Among Men and Women, by Age, %, 2015
Operating constraints
Advertising restrictions
Heath warnings and labeling requirements
Other restrictions
Distribution
Retail structure
Prospects and forecasts
Fine-cut tobacco consumption, pieces million, 2018-2028
Per capita consumption, grams per year, 2018-2028
Appendix

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