Cigarettes in South Africa, 2016
"Cigarettes in South Africa, 2016", is an analytical report by GlobalData that provides extensive and highly detailed current and future market trends in the South African market. It covers market size and structure along with per capita and overall consumption. Additionally, it focuses on brand data, retail pricing, prospects and forecasts for sales and consumption to 2025.
With a population of just over 48 million, South Africa is one of the most important regional cigarette markets. However, sales have for many years been badly affected by tax-induced price hikes, as well as more recently by an expanding non-duty paid market and the increasing health concerns of smokers. Duty paid volumes have largely followed a downward trend, although they recorded some degree of recovery in 2011 and 2012 before falling in 2013 to just over 20 billion pieces. The non-duty paid sector has expanded considerably since 2009. Latest data put non-duty paid volumes at 31% of total sales. The market is dominated by one company: British American Tobacco South Africa (BATSA), albeit with a reduced share in 2013. Other suppliers include JTI and PMI. The government's desire to raise revenue and reduce the incidence of smoking is playing a major part in shaping the market. Tax increases since 1994 have led to substantial price rises, a resultant explosion in smuggling and a fall in official sales. Restrictions on the promotion of tobacco products and the stipulation of requirements for the labelling of cigarette packs have also been significant.
- In contrast to its neighbors, the structure of the market resembles that of western countries. Filter-tipped cigarettes account for 95.0% of sales; king-size products are the most popular format, although a number of 100 and 120mm length cigarettes are available as a result of the popularity of certain brands. Tar and nicotine yields are limited by legislation and consumer pressures, and Virginia blends are overwhelmingly popular, although American blends hold a not insignificant share of the market.
- The market is dominated by one company: British American Tobacco South Africa (BATSA) albeit with a reduced share in 2014. Other suppliers include JTI and PMI.
- The rate of smoking is declining.
Reasons to buy
- Get a detailed understanding of consumption to align your sales and marketing efforts with the latest trends in the market.
- Identify the areas of growth and opportunities, which will aid effective marketing planning.
- The differing growth rates in regional product sales drive fundamental shifts in the market.
- This report provides detailed, authoritative data on these changes - prime intelligence for marketers.
- Understand the market dynamics and essential data to benchmark your position and to identify where to compete in the future.
Table of Contents
1. Overview 5
2. Market Size 6
3. Market Structure 10
4. Manufacturers & Brands 12
5. Taxation & Retail Prices 17
5.1. Taxation 17
5.2. Retail Prices 19
6. The Smoking Population 24
7. Production 32
7.1 Imports 34
7.2 Exports 37
8. Operating Constraints 42
8.1. Advertising Restrictions 42
8.2. Health Warnings 42
8.3. Other Restrictions 44
9. Company Profiles 46
10. Prospects & Forecasts 47
11. Appendix 49
11.1. What is this Report About? 49
11.2. Time Frame 50
11.3. Product Category Coverage 51
11.4. Methodology 52
11.5. About GlobalData 54
11.6. Disclaimer 55
11.7. Contact Us 56
List of Tables
Table 1: Cigarette Consumption , 1990-2015 6
Table 2: Duty Paid v Non-Duty Paid Sales in South Africa, 2006-2015 8
Table 3: Per Capita Consumption in Myanmar, 1990-2015 8
Table 4: Cigarette Sales by Price Band in South Africa, 2004-2009 10
Table 5: Market Breakdown by Pack Type: Hard v Soft Pack, 1998-2003 10
Table 6: Regular v Light Cigarettes in South Africa, 2004-2007 11
Table 7: Manufacturer Sales & Market Shares, 2000-2015 12
Table 8: Leading Cigarette Brands, 2005-2007 14
Table 9: Peter Stuyvesant Market Share, 2000-2008 15
Table 10: Taxation on Cigarettes, 1992-2016 17
Table 11: Tax Incidence, 1994-2012 18
Table 12: Retail Price Breakdown by Category for South Africa, 2009 19
Table 13: BATSA: Retail Prices, 2008-2012 20
Table 14: Average Retail Price of Cheapest Legal v Cheapest Illicitly Traded Cigarettes, 2013 23
Table 15: Reynolds American: Global Cigarette Sales & Share Development 24
Table 16: Number of Smokers by Consumption Pattern & Race, 1999 26
Table 17: Number of Smokers by Race (Students), 2006 26
Table 18: Incidence of Cigarette Smoking by Province, 2003 27
Table 19: Incidence of Smoking Amongst Youths by Province, 2002 28
Table 20: Smoking Prevalence by Ethnicity, 2009 28
Table 21: Incidence of Smoking by Income in Nguni/Sotho adults, 1999 29
Table 22: Incidence of Smoking by Gender, 1999 29
Table 23: Incidence of Smoking by Age, 1999 30
Table 24: Incidence of Smoking by Level of Education, 1999 30
Table 25: Incidence of Smoking by Size of Community, 1999 31
Table 26: Cigarette Production, 1990-2014 32
Table 27: Cigarette Factories, 2009 33
Table 28: Cigarette Imports , 1990-2014 34
Table 29: Cigarette Imports by Country of Origin, 2000-2014 35
Table 30: Cigarette Imports by Country of Origin, 2000-2014 - Percentage of Total Imports per country 36
Table 31: Exports of Cigarettes, 1990-2014 37
Table 32: Cigarette Exports by Country of Origin, 2000-2014 39
Table 33: Cigarette Exports by Destination, 2000-2014 - Percentage of Total Exports per Country 40
Table 34: Key Company Facts 46
Table 35: Consumption Forecasts to 2025 47
List of Figures
Figure 1: Methodology 52
Figure 2: Global Data at a glance 54
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