Although tobacco product manufacturing in Australia is restricted to two companies, heavy government regulation results in extremely fierce competition. Demand for cigarettes has declined over the past five years due to rising health concerns, frequent anti-smoking campaigns, increasing regulation and higher excise taxes. As a result, industry revenue is estimated to fall at a compound annual 0.8% over the five years through 2014-15. Revenue is forecast to drop by 3.8% in 2014-15 to reach $1.8 billion. Smoking tobacco has been proven to cause a range of health issues such as lung cancer, throat cancer and respiratory diseases.
Companies in the industry primarily manufacture tobacco products such as cigarettes, cigars, roll-your-own cigarettes and loose pipe tobacco. These products are sold to specialist tobacco wholesalers and retailers, supermarkets and convenience stores. Smokeless tobacco products such as chewing tobacco and snuff are banned in Australia and are therefore not included in the industry. Industry revenue does not include excise taxes.
The report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecast, growth rates and an analysis of the industry key players and their market shares.