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Tobacco Market in Sweden

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  • 1. Tobacco Market in SwedenReport Details:Published:September 2012No. of Pages:Price: Single User License – US$1900Discover the latest market trends and uncover sources of future market growth for the Tobaccoindustry in Sweden with research from Euromonitors team of in-country analysts.The Tobacco in Sweden market research report includes:•Analysis of key supply-side and demand trends•Detailed segmentation of international and local products•Historic volumes and values, company and brand market shares•Five year forecasts of market trends and market growth•Production, imports by origin, exports by destination•Robust and transparent market research methodology, conducted in-countryOur market research reports answer questions such as:•What is the market size of Tobacco in Sweden?•What are the major brands in Sweden?•Which sector of the tobacco products market is the largest by value sales in Sweden?•Which sector of the tobacco products market has been growing the fastest, by volume and value, in Sweden?•Which sector is the most heavily taxed in Sweden?•Which companies dominate in the total tobacco market in Sweden in terms of market share?•What is the distribution channel split for the tobacco products market in Sweden?Why buy this report?•Gain competitive intelligence about market leaders•Track key industry trends, opportunities and threats•Inform your marketing, brand, strategy and market development, sales and supply functionsEXECUTIVE SUMMARYRaised specific tax hits economy cigarettesFrom 1 January 2011, ad valorem excise on cigarettes was lowered at the same time as specifictaxes were raised. The decision to lower ad valorem excise was made in order to preventeconomy brands in particular becoming more popular. With the relatively high ad valorem excisewhich existed before 2011, manufacturers had an incentive to introduce economy brands.However, with the new focus on specific taxes, low-priced brands will be relatively higher taxedthan premium brands. The new tax structure was also introduced in order to prevent young peoplefrom starting smoking cigarettes. In 2012, taxes were further raised on cigarettes.
  • 2. Occasional cigar smokers on the riseIn 2011, sales of cigars continued to decline. Although cigar sales are falling in Sweden, there area growing number of occasional cigar smokers. Cigars still have a glamorous image and areincreasingly smoked during celebrations. There are also a growing number of young men whosmoke cigars as a status symbol, with, for example, the packaging of cigars becoming increasinglyimportant in communicating this status to others. As a result of advertising restrictions, packaginghas also become an increasingly important marketing tool for manufacturers. Due to this trend,premium cigars are in demand while interest in mass-market cigars is on the wane.Manufacturers introduce reduced-harm products due to rising health awarenessThanks to rising health awareness, smoking prevalence among the Swedish population isdeclining. With this rising health awareness an increasing number of Swedes have also switchedto tobacco products which are perceived to be less harmful, for example snuff. Rising healthawareness has also spurred the development of new types of products with a reduced tobaccocontent. In 2011, for example, there were several new launches of Swedish-style snus with areduced amount of tobacco. Also seen were a growing number of electronic cigarettes which aresold illegally over the internet, a phenomenon which the Medical Products Agency is currentlyinvestigating.Swedish-style snus still in demandAlthough sales of tobacco products in general are declining, sales of Swedish-style snus are stillrising. Swedish-style snus has benefited from the fact that snuff is perceived to be less harmfulthan cigarettes and many who stop smoking switch to snuff. The smoking ban in places wherefood is served, which was introduced in 2005, has also benefited sales of snuff. Due to the factthat sales of Swedish-style snus are still growing, a large number of new products are launchedevery year, with 2011 for example seeing the first snuff made from certified organic tobacco.Point-of-sale display ban heavily debated in Swedish mediaA point-of-sale display ban has still not been introduced in Sweden but is currently being heavilydebated in the Swedish media. Several bodies are lobbying for the introduction of a ban, includingorganisations such as A Non Smoking Generation. Major retailers have also expressed an interestin a ban. With a point-of-sale display ban, tobacco products would no longer be visible in retailoutlets. A point-of-sale display ban would mean that it would become increasingly difficult formanufacturers to launch new brands. It would also mean that the tobacco market would becomemore concentrated.Get your copy of this report @http://www.reportsnreports.com/reports/194461-tobacco-market-in-sweden.htmlMajor points covered in Table of Contents of this report includeTable of ContentsTobacco in Sweden - Industry OverviewEXECUTIVE SUMMARYRaised specific tax hits economy cigarettesOccasional cigar smokers on the rise
  • 3. Manufacturers introduce reduced-harm products due to rising health awarenessSwedish-style snus still in demandPoint-of-sale display ban heavily debated in Swedish mediaOPERATING ENVIRONMENTLEGISLATIONSummary 1 Legislation Summary at a GlanceCOUNTRY-SPECIFIC LEGISLATIONEU Directives:Minimum legal smoking ageSmoking prevalenceTable 1 Smoking Prevalence in Adult Population 2006-2011Table 2 Number of Smokers by Gender 2006-2011Tar levelsHealth warningsAdvertising & sponsorshipPoint-of-sale display bansSmoking in public placesLow ignition propensity (LIP) regulation‘Reduced harm’Electronic cigarettesLitigationDeath by causeTable 3 Death by Cause 2007-2011TAXATION AND PRICINGDuty paid packet marksTaxation ratesTable 4 Taxation and Duty Levies 2006-2011Average cigarette pack price breakdownTable 5 Average Cigarette Pack Price Breakdown: Brand ExamplesPRODUCTION/IMPORTS/EXPORTSIllicit trade in cigarettesMARKET INDICATORSTable 6 Illicit Trade Estimate of Cigarettes by Volume 2006-2011MARKET DATATable 7 Sales of Tobacco by Category: Volume 2006-2011Table 8 Sales of Tobacco by Category: Value 2006-2011Table 9 Sales of Tobacco by Category: % Volume Growth 2006-2011Table 10 Sales of Tobacco by Category: % Value Growth 2006-2011Table 11 Forecast Sales of Tobacco by Category: Volume 2011-2016Table 12 Forecast Sales of Tobacco by Category: Value 2011-2016Table 13 Forecast Sales of Tobacco by Category: % Volume Growth 2011-2016Table 14 Forecast Sales of Tobacco by Category: % Value Growth 2011-2016
  • 4. DEFINITIONSSOURCESSummary 2 Research SourcesTobacco in Sweden - Company ProfilesBritish American Tobacco Sweden AB in Tobacco (Sweden)STRATEGIC DIRECTIONKEY FACTSCOMPANY BACKGROUNDPRODUCTIONCOMPETITIVE POSITIONINGSummary 5 British American Tobacco Sweden AB: Competitive Position 2011JTI Sweden AB in Tobacco (Sweden)STRATEGIC DIRECTIONKEY FACTSCOMPANY BACKGROUNDPRODUCTIONSummary 8 JTI Sweden AB: Production Statistics 2011COMPETITIVE POSITIONINGSummary 9 JTI Sweden AB: Competitive Position 2011Swedish Match AB in Tobacco (Sweden)STRATEGIC DIRECTIONKEY FACTSCOMPANY BACKGROUNDPRODUCTIONSummary 12 Swedish Match AB: Production Statistics 2011COMPETITIVE POSITIONINGSummary 13 Swedish Match AB: Competitive Position 2011Cigarettes in Sweden - Category AnalysisHEADLINESTRENDSFrom 1 January 2011 the taxation on cigarettes switched from a value-based to a volume-basedsystem. In 2010, the tax on cigarettes was SEK0.31per stick plus 39.2% of the retail selling price.In 2011, however, volume-based taxation on cigarettes increased from SEK0.31 to SEK1.27 andvalue-based taxation decreased from 39.2% to 1% of the retail selling price. At the same time, theminimum taxation of SEK1.29 per stick was abolished.COMPETITIVE LANDSCAPECigarettes in Sweden is a concentrated category, with JTI Sweden AB, British American TobaccoSweden AB and Philip Morris AB together accounting for more than 93% of volume sales.NEW PRODUCT DEVELOPMENTSSummary 14 Cigarettes - New Product LaunchesDISTRIBUTION
  • 5. PROSPECTSRetail volume sales of cigarettes in Sweden are expected to fall over the forecast period, thuscontinuing the trend firmly established during the review period. As over the review period, ageneral increase in consumer health consciousness will be the key reason behind the decline as itwill lead to consumers lowering their consumption of cigarettes or stop smoking altogether.Government initiatives such as tax increases and restrictions in the marketing and sale ofcigarettes are also likely to have a negative impact on both retail volume and value sales over theforecast period.CATEGORY BACKGROUNDCigarettes: Price bandsSummary 15 Cigarette Price Band DefinitionsCigarettes: Menthol/standardFlavour threads and capsule filtersCigarettes: Filter/non-filterCigarettes: Carbon/standard filterCigarettes: Filter lengthCigarettes: Regular vs slims vs superslimsCigarettes: Pack sizeCigarettes: Pack typeCATEGORY DATATable 15 Sales of Cigarettes by Tar Level: Volume 2006-2011Table 16 Sales of Cigarettes by Tar Level: Value 2006-2011Table 17 Sales of Cigarettes by Tar Level: % Volume Growth 2006-2011Table 18 Sales of Cigarettes by Tar Level: % Value Growth 2006-2011Table 19 Sales of Cigarettes by Price Band: % Volume Breakdown 2006-2011Table 20 Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2006-2011Table 21 Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2006-2011Table 22 Sales of Cigarettes by Filter Vs Non-filter: % Volume Breakdown 2006-2011Table 23 Sales of Filter Cigarettes by Carbon Vs Non-carbon: % Volume Breakdown 2006-2011Table 24 Sales of Cigarettes by Length: % Volume Breakdown 2006-2011Table 25 Sales of Cigarettes by Regular/Slim/Superslim: % Volume Breakdown 2007-2011Table 26 Sales of Cigarettes by Pack Size: % Volume Breakdown 2006-2011Table 27 Sales of Cigarettes by Pack Type: % Volume Breakdown 2006-2011Table 28 Cigarettes Company Shares 2007-2011Table 29 Cigarettes Brand Shares 2008-2011Table 30 Sales of Cigarettes by Distribution Format: % Analysis 2006-2011Table 31 Cigarettes: Production, Imports and Exports: Total Volume 2006-2011Table 32 Forecast Sales of Cigarettes by Tar Level: Volume 2011-2016Table 33 Forecast Sales of Cigarettes by Tar Level: Value 2011-2016Table 34 Forecast Sales of Cigarettes by Tar Level: % Volume Growth 2011-2016Table 35 Forecast Sales of Cigarettes by Tar Level: % Value Growth 2011-2016Table 36 Forecast Sales of Cigarettes by Price Band: % Volume Breakdown 2011-2016
  • 6. Table 37 Forecast Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2011-2016Table 38 Forecast Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2011-2016Table 39 Forecast Sales of Cigarettes by Filter Vs Non-filter: % Volume Breakdown 2011-2016Table 40 Forecast Sales of Filter Cigarettes by Carbon Vs Non-carbon: % Volume Breakdown2011-2016Table 41 Forecast Sales of Cigarettes by Length: % Volume Breakdown 2011-2016Table 42 Forecast Sales of Cigarettes by Regular/Slim/Superslim: % Volume Breakdown 2011-2016Table 43 Forecast Sales of Cigarettes by Pack Size: % Volume Breakdown 2011-2016Table 44 Forecast Sales of Cigarettes by Pack Type: % Volume Breakdown 2011-2016Cigars in Sweden - Category AnalysisHEADLINESTRENDSThe underlying trend contributing to the retail volume decline of cigars and cigarillos has beengrowing social opposition to smoking and widespread knowledge about the dangers of the habit.Sales have also been hampered by the fact that this is a niche category, with only a few coresupporters. Young people in particular are less interested in smoking cigars and cigarillos with anydegree of regularity, which makes it difficult to recruit and retain customers.Table 45 Sales of Cigars by Handmade vs Machine-made: % Volume/Value Breakdown 2007-2011COMPETITIVE LANDSCAPECigars (excluding cigarillos) is a fragmented category in Sweden and as a result the majority of thecigar brands in the Swedish market command shares of less than 1%. One of the leadingcompanies in cigars is Habanos Nordic AB which offers, among others, the well-known Cubanbrands Cohiba, Montecristo, Partagás and Romeo y Julieta. In 2011, Habanos Nordic launchedthe Cohiba 1966 Limited Edition to celebrate the brand’s 45th anniversary.NEW PRODUCT DEVELOPMENTSSummary 16 Cigars - New Product LaunchesDISTRIBUTIONPROSPECTSRetail volume sales of cigars will continue to fall over the forecast period. In terms of cigars, therewill be growing demand for more premium products as cigars are increasingly being consumedduring special occasions. Although cigarillo manufacturers are increasingly trying to cater forcigarette smokers, it is unlikely that there will be a major shift from cigarette to cigarillo smoking.CATEGORY DATATable 46 Sales of Cigars by Category: Volume 2006-2011Table 47 Sales of Cigars by Category: Value 2006-2011Table 48 Sales of Cigars by Category: % Volume Growth 2006-2011Table 49 Sales of Cigars by Category: % Value Growth 2006-2011Table 50 Sales of Cigars by Handmade vs Machine-manufactured: % Volume Breakdown 2006-2011Table 51 Sales of Cigars by Handmade vs Machine-manufactured: % Value Breakdown 2006-
  • 7. 2011Table 52 Company Shares of Cigars Excluding Cigarillos 2007-2011Table 53 Brand Shares of Cigars Excluding Cigarillos 2008-2011Table 54 Company Shares of Cigarillos 2007-2011Table 55 Brand Shares of Cigarillos 2008-2011Table 56 Sales of Cigars by Distribution Format: % Analysis 2006-2011Table 57 Forecast Sales of Cigars by Category: Volume 2011-2016Table 58 Forecast Sales of Cigars by Category: Value 2011-2016Table 59 Forecast Sales of Cigars by Category: % Volume Growth 2011-2016Table 60 Forecast Sales of Cigars by Category: % Value Growth 2011-2016Smokeless Tobacco in Sweden - Category AnalysisHEADLINESTRENDSSmokeless tobacco has traditionally been popular in Sweden, with sales overwhelminglydominated by Swedish-style snus. Swedish-style snus offers a broad range of brands andvarieties, with portioned products being the most popular and continuing to grow in importance.Sweden is the largest Swedish-style snus market in the world in terms of per capita consumption.DISTRIBUTIONCOMPETITIVE LANDSCAPESnuff is dominated by domestic player Swedish Match AB which in 2011 held a volume share of86%. Ranked second was British American Tobacco subsidiary Fiedler & Lundgren AB with ashare of 9%. Other smaller players include the subsidiary of Imperial Tobacco Group, Skruf SnusAB, and the subsidiary of Japan Tobacco Inc, JTI Sweden AB.NEW PRODUCT DEVELOPMENTSSummary 17 Smokeless Tobacco - New Product LaunchesPROSPECTSOver the forecast period Swedish-style snus is projected to grow slowly. Portion snus will continueto take share from loose snus. In volume terms, Swedish-style portion snus is anticipated a CAGRof 1% while loose Swedish-style snus is predicted a slight decline.CATEGORY DATATable 61 Sales of Smokeless Tobacco by Category: Volume 2006-2011Table 62 Sales of Smokeless Tobacco by Category: Value 2006-2011Table 63 Sales of Smokeless Tobacco by Category: % Volume Growth 2006-2011Table 64 Sales of Smokeless Tobacco by Category: % Value Growth 2006-2011Table 65 Company Shares of Smokeless Tobacco 2007-2011Table 66 Brand Shares of Smokeless Tobacco 2008-2011Table 67 Sales of Smokless Tobacco by Distribution Format: % Analysis 2006-2011Table 68 Forecast Sales of Smokeless Tobacco by Category: Volume 2011-2016Table 69 Forecast Sales of Smokeless Tobacco by Category: Value 2011-2016Table 70 Forecast Sales of Smokeless Tobacco by Category: % Volume Growth 2011-2016Table 71 Forecast Sales of Smokeless Tobacco by Category: % Value Growth 2011-2016
  • 8. Smoking Tobacco in Sweden - Category AnalysisHEADLINESTRENDSThe smoking of pipe and RYO tobacco has always been relatively limited when compared to, forexample, cigarette smoking. RYO tobacco has never reached the same popularity in Sweden as inmany other European countries such as the Netherlands. The sale of pipe tobacco is generallylimited to elderly men. There is less interest in pipe tobacco among younger generations than incigars, for example.THE ROLE AND EFFECT OF CANNABIS/MARIJUANADISTRIBUTIONCOMPETITIVE LANDSCAPEIn 2011, British American Tobacco Sweden AB led RYO tobacco in Sweden thanks to the brandsEscort and Tiedemanns. The second largest company in RYO tobacco was JTI Sweden AB withvarious John Silver lines. In 2011, British American Tobacco AB held a volume share of 39% inRYO tobacco and JTI Sweden 25%.NEW PRODUCT DEVELOPMENTSSummary 18 Smoking Tobacco - New Product LaunchesPROSPECTSVolume sales are expected to decline further over the forecast period, marking a continuation ofthe review period trend. Similar to tobacco sales in general, a decline in smoking prevalence willhave a negative impact on sales. The decline in smoking prevalence will be largely related toincreased health consciousness.CATEGORY DATATable 72 Sales of Smoking Tobacco by Category: Volume 2006-2011Table 73 Sales of Smoking Tobacco by Category: Value 2006-2011Table 74 Sales of Smoking Tobacco by Category: % Volume Growth 2006-2011Table 75 Sales of Smoking Tobacco by Category: % Value Growth 2006-2011Table 76 Company Shares of RYO Tobacco 2007-2011Table 77 Brand Shares of RYO Tobacco 2008-2011Table 78 Company Shares of Pipe Tobacco 2007-2011Table 79 Brand Shares of Pipe Tobacco 2008-2011Table 80 Sales of Smoking Tobacco by Distribution Format: % Analysis 2006-2011Table 81 Forecast Sales of Smoking Tobacco by Category: Volume 2011-2016Table 82 Forecast Sales of Smoking Tobacco by Category: Value 2011-2016Table 83 Forecast Sales of Smoking Tobacco by Category: % Volume Growth 2011-2016Table 84 Forecast Sales of Smoking Tobacco by Category: % Value Growth 2011-2016Contact: sales@reportsandreports.com for more information.