Cigarette & Tobacco Products Wholesaling in Canada
In line with a long-term decline in demand for tobacco products, the Cigarette and Tobacco Products Wholesaling industry has endured challenging operating conditions in recent years. Health-conscious Canadian consumers are currently less inclined to pick up smoking than ever before. Meanwhile, federal and provincial governments have levied higher excise taxes on cigarette products in an effort to raise tax revenue and reduce tobacco consumption. To sustain profit margins amid declining sales volumes, cigarette manufacturers have consistently raised prices on their products, though the revenue benefits of this practice have been largely offset by ongoing wholesale bypass. Industry revenue is expected to fall over the five years to 2022 as wholesalers struggle to stay afloat amid declining tobacco consumption, higher excise taxes and rising compliance costs.
This industry acquires packaged cigarettes and other tobacco products from manufacturers and sells the goods to various retail stores, such as supermarkets, convenience stores, specialized tobacco stores and bars. They may also sell to other wholesalers. The sales and distribution offices of tobacco product manufacturers are included in this industry.
This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.
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