Smoking Tobacco in Italy, 2019
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
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