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SOURCE: Global Industry Analysts, Inc.
GIA announces the release of a comprehensive global report on the Cigarettes markets. Global market for Cigarettes is projected to reach US$910 billion by the year 2018. Sales of cigarettes continue to rise in volume terms but face increasing pressure from anti-smoking campaigns, legislations and taxes apart from rising health concerns.
San Jose, California (PRWEB) February 06, 2013
Follow us on LinkedIn – Cigarettes represent the most popular tobacco product worldwide, dominating the global tobacco market in volume and value terms. Worldwide, over 5.0 trillion cigarettes are consumed each year. The global cigarette market can best be described as a mature and largely stable market. While sales in the developed region continue to decline at a significant rate, the overall impact is offset by sales in developing market owing to rising population. The market posts a relatively higher rate in terms of value, driven mainly by price increases from manufacturers, as a result of increase in taxes from various governments worldwide.
Major issues daunting the cigarette industry in the present context include increasing regulations, rising taxes and growth of illicit cigarette trade. The cigarette market is marred by implementation of excessive regulations in the form of ban in public places, restrictions on advertising and packaging, among others, which are resulting in decline in volume sales. Additionally, governments worldwide have embarked on tax rises as a means to discourage smoking by making them expensive and unaffordable, which also fills their coffers with tax revenue. Price increase represents a perpetual phenomenon in the cigarette industry worldwide. The intended outcome of this strategy is to reduce smoking prevalence. The effect of price rises is expected to be substantial in developing countries with lower customer spending power when compared to developed countries. However, in practice this does not apply to all countries and the outcomes are not uniform, as several other factors come into the equation that may aggravate or alleviate the effect of price on consumption. These factors include a recession that affects the spending ability of consumers, existing laws such as a ban on smoking in public places, the rise or fall of illicit trade and down-trading, among others.
As stated by the new market research report on Cigarettes, China represents the single largest market for cigarettes worldwide. Russia and the US represent the other two leading markets for cigarettes worldwide. Growth in volumes, however, is expected to remain positive in China, Indonesia and several other Asia-markets throughout the analysis period, although the rate of grow expected to decelerate in these markets as well. Meanwhile, Western Europe emerges as the most profitable region worldwide, as its share in profits is fairly larger than its volume share. Middle East and Africa (MEA) and Latin America represent lucrative markets for cigarette manufacturers given the largely similar contribution of the market towards volumes and profits.
The Western European region has seen some of the most stringent anti-tobacco laws being implemented over the last few decades. The laws, along with rising awareness on the perils of the smoking habit, have ensured that cigarette volumes and prevalence rates decline with each passing year. However, the prevalence rates today continue to be high when compared to prevalence rates in some of the developing regions such as Asia-Pacific. Consecutive increases in taxation resulted in volume sales decline at retail level throughout the European region. The other effect of the approach was the shift to economy cigarettes and use of other low cost tobacco products such as Roll-Your-Own cigarettes.
Presently, the global cigarette industry is largely consolidated. The last decade has witnessed several public tobacco companies involved in mergers and privatization. Major players profiled in the report include British American Tobacco, China National Tobacco Corporation, Imperial Tobacco Group PLC, Japan Tobacco Group, and Philip Morris International.
The research report titled “Cigarettes: A Global Strategic Business Report” announced by Global Industry Analysts Inc., provides a comprehensive review of market trends, issues, drivers, company profiles, mergers, acquisitions and other strategic industry activities. The report provides market estimates and projections in value (US$) and volume (sticks) for global and regional markets including the US, Canada, Japan, Europe (France, Germany, Italy, UK, Spain, Russia, Greece, Poland, Turkey, Ukraine, and Rest of Europe), Asia-Pacific (Australia, China, India, Indonesia, Malaysia, Philippines, Singapore, South Korea, Taiwan, Thailand, Rest of Asia-Pacific), Latin America (Argentina, Brazil, Chile, Colombia, Ecuador, Mexico, Peru, and Venezuela), and Rest of World.
For more details about this comprehensive market research report, please visit –
About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a leading publisher of off-the-shelf market research. Founded in 1987, the company currently employs over 800 people worldwide. Annually, GIA publishes more than 1300 full-scale research reports and analyzes 40,000+ market and technology trends while monitoring more than 126,000 Companies worldwide. Serving over 9500 clients in 27 countries, GIA is recognized today, as one of the world's largest and reputed market research firms.
Global Industry Analysts, Inc.
Web Site: http://www.StrategyR.com/
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