Showing posts with label Tobacco. Show all posts
Showing posts with label Tobacco. Show all posts

Global Tobacco: Survival strategies for a savage market

Global Tobacco: Survival strategies for a savage market
25 Nov 2008

Euromonitor International's new global briefing on the tobacco market entitled “Global Tobacco: Survival strategies for a savage marekt" offers a forward-looking appraisal at a time when the tobacco industry faces the most challenging and turbulent period in its long history.

The big global story in 2007 and 2008 is the tightening grip of tobacco control on world consumption. Western Europe, North America and Australasia all recorded volume declines in 2007 as smoking bans, pack warnings and tax hikes ramped up prices and took their toll on prevalence and per capita consumption.

How is the industry expected to react to the legislative onslaught? Five key trends and the questions for the future which they pose are analysed in this new format report. The trends and the questions are as follows:Tobacco control – how far can it go? Developing markets – can they maintain global volumes? Premium prices – can they stay robust? Industry consolidation – have we reached the endgame? Cigarette alternatives – will they replace cigarette volume decline?
Tobacco control is driving up prices and encouraging public smoking bans, both of which drive down volumes.

Consumption in many developed markets is contracting but 'premiumisation' – improving the mix with a higher proportion of premium international brands, has meant values rising even where volumes fall. Can the formula continue as higher prices tempt consumers to down-trade?Tobacco is more concentrated in terms of ownership than any other industry, a great competitive advantage for the companies.

Is there anyone else to acquire? Will China join the acquisitions fray? And will cigars, smoking tobacco and smokeless products such as moist snuff make up for fewer cigarette smokers? These and other questions are answered in this new format report designed for easy understanding and swift insights for those involved in the industry in any capacity.For further insight, please contact Zora Milenkovic.

KeywordsAsia Pacific, Australasia, Eastern Europe, Latin America, Middle East and Africa, North America, Western Europe, World Cigarettes, Cigars, Smoking tobacco Industry trends, The big picture