Demand for cigarettes has declined over the five years through 2011-12 due to increasing health concerns, anti-smoking campaigns, increasing regulations and higher excise taxes. However, price rises have offset this decline to some extent. As a result, industry revenue is expected to grow at an annualised 1.8% over the five years through 2011-12 to total $1.53 billion.
Demand for the industry's products is considered relatively price inelastic. However, increases in prices and excise taxes are expected to lead to lower demand. Excise taxes, which are excluded from the industry, have risen continuously over the past five years.
Companies in the industry manufacture smoking and smokeless tobacco products. These are sold to specialist tobacco wholesalers and retailers, general grocery distributors, supermarkets and convenience stores. Specifically, the products included in the industry are cigarettes, cigars and smoking and chewing tobacco. 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.