Tobacco in AustriaReport SummaryGood performance of tobacco market in 2010The overall tobacco market in Austria registered a good performance over the review period. In spiteof the stricter tobacco legislation imposed in 2009 and then implemented in 2010, the consumption ofcigarettes did not decline and Austrian consumers did not turn away from smoking completely.Furthermore, the emergence of economy brands also contributed to the stable number of smokers in2010. These positive developments contributed to an overall good value and volume growth of theentire tobacco market in 2010.Partial smoking ban and shift to economy brandsThe restriction on smoking in foodservice outlets introduced in 2009 were completely implemented in2010, however, this has had little effect on the number of smokers in Austria as well as on the sales oftobacco products in general. Since there are now foodservice outlets with partial and total smokingbans and since the majority of outlets have a partial smoking ban, Austrians did not consume fewercigarettes but simply shifted to foodservice outlets where smoking is allowed. Another observabletrend in 2010 was the trend towards economy cigarette brands as well as the consumer shift fromcigarettes to RYO tobacco. In order to cut down on spending on tobacco, Austrians are increasinglyturning to mass market brands and to cheaper alternatives.Multinationals lead salesThe leading manufacturers Austria Tabak, Philip Morris and Imperial Tobacco were able to obtain themajority of market share within the tobacco category offering their well-known global flagship brandsas well as cheaper economy brands that are increasingly gaining popularity. All three manufacturersemployed the strategy of offering a wide range of products across all price segments thus meetingdemands from a wider consumer base.Specialist tobacconists lead in distributionIn 2010, the retail distribution of Austria Tobacco market remained under the control of the MonopolyAdministrator, which has legislation in place that protects the interests of specialist tobacco outlets. Asa result, tobacco specialists were again the leading distributors in all tobacco categories. The otherretailers permitted to sell tobacco products in Austria are newsagents-tobacconists/kiosks, foodserviceoutlets, vending and forecourts. More mainstream retailers, such as supermarkets/hypermarkets anddiscounters, are not permitted to sell tobacco products under Austrian legislation.Fair future developmentOver the forecast period, the overall tobacco market in Austria is expected to register a goodperformance although at a slower growth rate than that seen over the review period. The slower
growth rate in the future will come as a consequence of higher prices of cigarettes and higher taxationon tobacco, which was imposed at the beginning of 2011. Due to this, consumers will either only optfor economy brands or switch completely to other categories. The drop in value growth withincigarettes might slow down the growth of the entire market in the future.Browse to view similar reports on:Tobacco in SlovakiaTobacco in SloveniaTobacco in UkraineTobacco in IrelandTABLE OF CONTENTSTobacco in Austria - Industry OverviewEXECUTIVE SUMMARYGood performance of tobacco market in 2010Partial smoking ban and shift to economy brandsMultinationals lead salesSpecialist tobacconists lead in distributionFair future developmentOPERATING ENVIRONMENTLegislative overview/FCTC ratificationSummary 1 Legislation Summary at a GlanceCountry-specific legislation:Minimum legal smoking ageSmoking prevalenceTable 1 Smoking Prevalence in Adult Population 2005-2010Table 2 Number of Smokers by Gender 2005-2010Tar levelsHealth warningsAdvertising and SponsorshipPoint-of-sale display bansSmoking in public placesLow Ignition Propensity (LIP) regulationElectronic cigarettesLitigationDeath by causeTable 3 Death by Cause 2005-2010TAXATION AND PRICINGDuty paid packet marksTaxation rates
Table 4 Taxation and Duty Levies 2005-2010Average cigarette pack price breakdownTable 5 Average Cigarette Pack Price Breakdown: Brand Examples 2010PRODUCTION/IMPORTS/EXPORTSTable 6 Production/Imports/Exports 2005-2010Table 7 Trade Statistics – Tobacco Leaf 2006-2010Illicit trade in cigarettesMARKET INDICATORSTable 8 Illicit Trade Estimate of Cigarettes by Volume 2005-2010MARKET DATATable 9 Sales of Tobacco by Category: Volume 2005-2010Table 10 Sales of Tobacco by Category: Value 2005-2010Table 11 Sales of Tobacco by Category: % Volume Growth 2005-2010Table 12 Sales of Tobacco by Category: % Value Growth 2005-2010Table 13 Forecast Sales of Tobacco by Category: Volume 2010-2015Table 14 Forecast Sales of Tobacco by Category: Value 2010-2015Table 15 Forecast Sales of Tobacco by Category: % Volume Growth 2010-2015Table 16 Forecast Sales of Tobacco by Category: % Value Growth 2010-2015DEFINITIONSSummary 2 Research SourcesTobacco in Austria - Company ProfilesAustria Tabak GmbH in Tobacco (Austria)STRATEGIC DIRECTIONKEY FACTSCOMPANY BACKGROUNDPRODUCTIONSummary 5 Austria Tabak GmbH & Co KG: Production Statistics 2010COMPETITIVE POSITIONINGSummary 6 Austria Tabak GmbH & Co KG: Competitive Position 2010Imperial Tobacco Austria Marketing Service GmbH in Tobacco (Austria)STRATEGIC DIRECTIONKEY FACTSCOMPANY BACKGROUNDPRODUCTIONCOMPETITIVE POSITIONING
Summary 9 Imperial Tobacco Austria Marketing Service GmbH: Competitive Position 2010Philip Morris GmbH in Tobacco (Austria)STRATEGIC DIRECTIONKEY FACTSCOMPANY BACKGROUNDPRODUCTIONCOMPETITIVE POSITIONINGSummary 12 Philip Morris GmbH: Competitive Position 2010Cigarettes in Austria - Category AnalysisHEADLINESTRENDSThe cigarettes market registered a very good performance in Austria in 2010. Even though thegovernment’s imposition of stricter regulations is ongoing, there is still a significant number ofAustrians who do not wish to give up smoking. This is closely related to the Austrian tradition of greatcafé culture. The majority of Austrians still prefer going for a coffee with friends and chatting whileenjoying their favourite coffee and a cigarette. The majority of Austrians are happy with the currentstate of affairs, which offers physically divided spaces for smokers and non-smokers. This is especiallyobservable in the state capital, Vienna. Viennese café culture is still cherished and, along with it, thetradition of smoking. Even though many Austrians are fond of healthier lifestyles and smoke-freeenvironments, there are significant numbers of people who are not willing to give up smokingcompletely but rather tend to switch to lower tar cigarettes. As a result, the cigarettes marketregistered a good performance in 2010 maintaining positive value as well volume growth.COMPETITIVE LANDSCAPEUntil 1995, when Austria joined the EU, the cigarette industry was fully controlled by the state ownedMonopoly Administrator, which controlled production, importation and exportation. At present, the100% state owned Monopolverwaltung GesmbH (Monopoly Administrator), which was established in1995, holds total control over the retail distribution of cigarettes in Austria.NEW PRODUCT DEVELOPMENTSSummary 13 Cigarettes - New Product LaunchesDISTRIBUTIONPROSPECTSThe cigarettes market is expected to show a good performance over the forecast period. The maintrend will be towards cigarettes with lower tar content. Just as consumers have gradually started toswitch from high tar cigarettes to mid tar cigarettes in the past, the same switch from mid tarcigarettes to low and ultra cigarettes will be ongoing in the future. Even though the price of cigarettes
is expected to increase significantly in 2011, as well as the taxation on tobacco, consumers are notexpected to buy fewer cigarettes but to switch to cheaper brands instead. Another trend that will beseen in the future within cigarettes in Austria will be the trend towards new product launches speciallyproduced to target female smokers. As there is a growing number of females in Austria, producers areexpected to follow this trend and place greater emphasis on this consumer group.CATEGORY BACKGROUNDCigarettes: Price BandsSummary 14 Cigarette Price Band DefinitionsCigarettes: Menthol/standardCigarettes: Filter/non-filterCigarettes: Carbon/standard filterCigarettes: Filter lengthCigarettes: Slims/superslims vs regularCigarettes: Pack sizeCigarettes: Pack typeCATEGORY DATATable 17 Sales of Cigarettes by Tar Level: Volume 2005-2010Table 18 Sales of Cigarettes by Tar Level: Value 2005-2010Table 19 Sales of Cigarettes by Tar Level: % Volume Growth 2005-2010Table 20 Sales of Cigarettes by Tar Level: % Value Growth 2005-2010Table 21 Sales of Cigarettes by Price Band: % Volume Breakdown 2005-2010Table 22 Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2005-2010Table 23 Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2005-2010Table 24 Sales of Cigarettes by Filter Vs Non-filter: % Volume Breakdown 2005-2010Table 25 Sales of Filter Cigarettes by Carbon Vs Non-carbon: % Volume Breakdown 2005-2010Table 26 Sales of Cigarettes by Length: % Volume Breakdown 2005-2010Table 27 Sales of Cigarettes by Regular/Slim: % Volume Breakdown 2006-2010Table 28 Sales of Cigarettes by Pack Size: % Volume Breakdown 2005-2010Table 29 Sales of Cigarettes by Pack Type: % Volume Breakdown 2005-2010Table 30 Cigarettes Company Shares 2006-2010Table 31 Cigarettes Brand Shares 2007-2010Table 32 Sales of Cigarettes by Distribution Format: % Analysis 2005-2010Table 33 Cigarettes: Production, Imports and Exports: Total Volume 2005-2010Table 34 Forecast Sales of Cigarettes by Tar Level: Volume 2010-2015Table 35 Forecast Sales of Cigarettes by Tar Level: Value 2010-2015Table 36 Forecast Sales of Cigarettes by Tar Level: % Volume Growth 2010-2015Table 37 Forecast Sales of Cigarettes by Tar Level: % Value Growth 2010-2015Table 38 Forecast Sales of Cigarettes by Price Band: % Volume Breakdown 2010-2015Table 39 Forecast Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2010-2015Table 40 Forecast Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2010-2015Table 41 Forecast Sales of Cigarettes by Filter Vs Non-filter: % Volume Breakdown 2010-2015Table 42 Forecast Sales of Filter Cigarettes by Carbon Vs Non-carbon: % Volume Breakdown 2010-2015
Table 43 Forecast Sales of Cigarettes by Length: % Volume Breakdown 2010-2015Table 44 Forecast Sales of Cigarettes by Regular/Slim: % Volume Breakdown 2010-2015Table 45 Forecast Sales of Cigarettes by Pack Size: % Volume Breakdown 2010-2015Table 46 Forecast Sales of Cigarettes by Pack Type: % Volume Breakdown 2010-2015Cigars in Austria - Category AnalysisHEADLINESTRENDSAustria does not have a long tradition of smoking cigars and cigarillos. The habit of consuming thesetobacco products is relatively new. At present, Austria has a significant but also limited cigar consumergroup that mainly comprises of cigar and cigarillo aficionados who are loyal to specific brands. Prior toAustria’s joining the EU in 1995, the total control over tobacco products was held by the MonopolyAdministrator. After this, legislation relating to the production, wholesale distribution, importation andexportation of tobacco products was loosened and private companies were able to enter the market.After 2000, importers and wholesalers flooded the market with new and interesting products as wellas high quality items. This created a boom for cigars and cigarillos, which remains ongoing, while theproducts that were available prior to 1998 have disappeared almost entirely from retail.HAND-MADE VERSUS MACHINE MANUFACTURED SPLITSTable 47 Sales of Cigars by Handmade vs Machine-manufactured 2006-2010COMPETITIVE LANDSCAPEThe leading manufacturer within cigars excluding cigarillos in 2010 was Corporación Habanos holding a49% value share. This makes the company the undisputed leader within the market. Since theacquisition of Altadis in 2008, Imperial Tobacco Group now owns a 50% share of Corporación Habanos.However, Habanos, which has a monopoly on cigar production in Cuba, retained control over themarketing, selling and distribution of its products. The runner-up producer in 2010 was Davidoff & Cie,Genève holding a 4% share of value sales, followed by Austria Tabak with just under 4%..NEW PRODUCT DEVELOPMENTSSummary 15 Cigars and Cigarillos - New Product LaunchesDISTRIBUTIONPROSPECTSOver the forecast period, the cigars category is expected to be dominated by two major trends. On theone hand, consumers are expected to keep shifting to shorter cigar formats such as small cigars andcigarillos. This will mainly be the domain of consumers with average disposable income since they areexpected to shift to more favourable machine made cigar brands, which are mainly found in smallcigars and cigarillos. The category of large cigars will maintain its premium domain attracting wealthierconsumers who prefer Cuban cigars, which are hand-made and thus more expensive.
CATEGORY DATATable 48 Sales of Cigars by Category: Volume 2005-2010Table 49 Sales of Cigars by Category: Value 2005-2010Table 50 Sales of Cigars by Category: % Volume Growth 2005-2010Table 51 Sales of Cigars by Category: % Value Growth 2005-2010Table 52 Sales of Cigars by Handmade vs Machine Manufactured: % Volume Breakdown 2005-2010Table 53 Company Shares of Cigars Excluding Cigarillos 2006-2010Table 54 Brand Shares of Cigars Excluding Cigarillos 2007-2010Table 55 Company Shares of Cigarillos 2006-2010Table 56 Brand Shares of Cigarillos 2007-2010Table 57 Sales of Cigars by Distribution Format: % Analysis 2005-2010Table 58 Forecast Sales of Cigars by Category: Volume 2010-2015Table 59 Forecast Sales of Cigars by Category: Value 2010-2015Table 60 Forecast Sales of Cigars by Category: % Volume Growth 2010-2015Table 61 Forecast Sales of Cigars by Category: % Value Growth 2010-2015Smoking Tobacco in Austria - Category AnalysisHEADLINESTRENDSAustria does not have long tradition of RYO smoking. This is a relatively new trend in Austria, which isperceived as an old school style of smoking tobacco. The tradition of pipe smoking has a longertradition in Austria. It was popular in Austria when the Monopoly Administrator controlled the tobaccocategory prior to 1995. Today, pipe smoking is widely regarded as old fashioned and its popularity hasdropped significantly. Nowadays, pipe smoking is mainly reserved for various cigar and tobaccoaficionado clubs and it is chiefly consumed by senior citizens.The role and effect of cannabis/marijuanaDISTRIBUTIONCOMPETITIVE LANDSCAPEThe leading producer within smoking tobacco in 2010 was Austria Tabak holding a 35% volume sharemainly generated through the good performance of its Smart, Altesse, Old Holborn and Landtabakbrands. The runner-up manufacturer was Imperial Tobacco Austria Marketing Service with 23% of thevalue shares in 2010. The company managed to establish itself as the runner-up producer due to thegood performance of its brands Drum, Golden Virginia, Gauloises, John Player, West and Amphora. Thethird-ranked producer in 2010 was British American Tobacco (Austria) holding a 9% share of valuesales thanks to its Pall Mall, Javaanse Jongens and Derby brands.NEW PRODUCT DEVELOPMENTSSummary 16 Smoking tobacco - New Product LaunchesPROSPECTS
Over the forecast period, smoking tobacco is expected to sustain a good performance. The trendtowards RYO tobacco is expected to be prolonged and increasing numbers of consumers are expectedto switch to this tobacco product in order to be cut down their spending on tobacco. In addition, withexpected price increases of cigarettes occurring in 2011, the trend towards shifting to RYO tobacco isexpected to be even more important in the future. Even though the producers are expected tocontinue making efforts to revive the market of pipe tobacco by launching new product launches fromthis category, the rather negative and old-fashioned image of pipe tobacco will also prevail in thefuture.CATEGORY DATATable 62 Sales of Smoking Tobacco by Category: Volume 2005-2010Table 63 Sales of Smoking Tobacco by Category: Value 2005-2010Table 64 Sales of Smoking Tobacco by Category: % Volume Growth 2005-2010Table 65 Sales of Smoking Tobacco by Category: % Value Growth 2005-2010Table 66 Company Shares of RYO Tobacco 2006-2010Table 67 Brand Shares of RYO Tobacco 2007-2010Table 68 Company Shares of Pipe Tobacco 2006-2010Table 69 Brand Shares of Pipe Tobacco 2007-2010Table 70 Sales of Smoking Tobacco by Distribution Format: % Analysis 2005-2010Table 71 Forecast Sales of Smoking Tobacco by Category: Volume 2010-2015Table 72 Forecast Sales of Smoking Tobacco by Category: Value 2010-2015Table 73 Forecast Sales of Smoking Tobacco by Category: % Volume Growth 2010-2015Table 74 Forecast Sales of Smoking Tobacco by Category: % Value Growth 2010-2015About Us:ReportsnReports is an online library of over 100,000+ market research reports and in-depth marketresearch studies & analysis of over 5000 micro markets. We provide 24/7 online and offline support toour customers. Get in touch with us for your needs of market research reports.Follow us on Twitter: http://twitter.com/marketsreportsContact:Mr.Priyank7557 Rambler road,Suite727,Dallas,TX75231Tel: + 1 888 391 5441E-mail: firstname.lastname@example.orgVisit our Market Research Blog