Jump to full article: Euromonitor International, 2009-09-24
Intro: Euromonitor International's Tobacco in Germany market report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data, allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market - be they new product developments, packaging innovations, economic/lifestyle influences, distribution or pricing issues. Forecasts illustrate how the market is set to change. . . .
Executive summary
Downturn in volume sales continues
Volume sales of tobacco products in Germany continued to register significant declines in 2008 as a result of continued pressure deriving from a combination of the smoking ban, high unit prices and generally increased health awareness, all of which further lowered smoking prevalence. High levels of illicit trade and legitimate cross border sales further contributed to the legal market’s overall decline, resulting in additional turnover losses, especially in the cigarettes sector.
Market segments impacted differently
Least affected by volume declines was RYO tobacco, often acting as a value-for-money alternative to cigarettes for many smokers. Worst affected was cigarillos after a change in taxation on 1 January 2008 ruled that the previously strong performing eco-cigarillos be taxed at the same rate as cigarettes. Sales of cigars were also particularly affected by the smoking ban, which diminished the largest smoking platforms for cigars - restaurants and bars. Value gains were achieved in the two biggest segments, mid-tar cigarettes and RYO tobacco, as a result of successfully implemented unit price increases.
Pseudo pipe tobaccos faced with change in taxation
As of July 2008, the German government ruled that the so-called pseudo pipe tobaccos be taxed at the same rate as RYO tobacco. This change in taxation ended two consecutive years of strong performance for pseudo pipe tobaccos, which had been introduced in 2006 by manufacturers of both pipe tobacco and RYO tobacco as a cheap low-taxed alternative to standard RYO tobacco. Subsequently, all pseudo pipe tobacco brands vanished from the market in the second half of 2008, brining an end to the strong growth of pipe tobacco in recent years.
Economy brands continue to post strongest growth
Jump to full article » |