China s Tobacco Industry in Favorable Development of Low-tar-level Cigarettes Production, Marketing in First Eight Months

Source from:  Tobacco China Magazine 10/23/2012

The tobacco industry of China, under promotion of the policy of active development of low-tar-level cigarette products and increasing growth in consumer demand for the supply of low-tar-level cigarettes, registered favorable development of rapid growth in both the production and marketing of low-tar-level cigarettes in first eight months in 2012. From January to August 2012, the tobacco industry reached record highs over 210 billion cigarettes (4.2 million cases) in both the production and marketing of low-tar-level cigarettes (with a tar level of 8mg or lower), and among it, the output and sales volume of cigarette with a tar level of 6mg or lower reached 7 billion cigarettes (0.14 million cases) and 7.5 billion cigarettes (0.15 million cases).

Judged by the situation of development of low-tar-level cigarettes production and marketing in China in the first eight months in 2012, key cigarette brands were the leading forces in the development of low-tar-level cigarettes production and marketing. Output and sales volume of key bands both over 170 billion cigarettes (3.4 million cases) and both above 80 percent in total volume of low tar cigarette. And among it, the sales and output volume of cigarette with a tar level of 6mg or lower both over 6.5 billion cigarettes (0.13 million cases). Judged by output and sales volume of single brand, the top three brands, Changbaishan, Huanghelou and Lanzhou, were key brands, with the output and sales volume of Changbaishan and Huanghelou reaching 25 billion cigarettes (0.5 million cases), Lanzhou, over 22.5 billion cigarettes (0.45 million cases). From January to August 2012, both the production and marketing of low-tar-level cigarettes went up relatively sharply over 100 percent. And both the production and marketing of cigarettes with a tar 6mg or lower increased by 50 percent. In the first eight moths in 2012, Chinese tobacco manufacturing enterprises all strengthened efforts for developing, producing and marketing low-tar-level cigarettes. There were 28 tobacco manufacturing enterprises producing low-tar-level cigarettes in China in this period, with 17 enterprises producing cigarettes with a tar level of 6mg or lower. With the Top Three producers respectively being China Tobacco Hubei Industrial Corporation in central China's Hubei Province, Jilin Tobacco Industry Co., Ltd. in northeast China's Jilin Province, Gansu Tobacco Industry Co., Ltd. in northwest China's Gansu Province and whose output of low-tar-level cigarettes each topped 22.5 billion cigarettes (0.45 million cases) in the period. In the first eight months in 2012, commercial enterprises of the tobacco industry made great efforts to promote sales of low-tar-level cigarettes. They realized a sales volume of low-tar-level cigarettes to the tune of 10 billion cigarettes (200,000 cases) or more in 7 of 33 provincial-level markets in the period. In particular, the Top Three provincial-level markets were respectively Hubei Province in central China, Zhejiang Province in east China and Gansu Province in northwest China, with the annual sales volume in them respectively over 15 billion cigarettes (0.3 million cases). And the Top Three provincial-level markets on term of sales cigarettes with a tar 6mg or lower were respectively Hubei Province in central China, Fujian Province in east China and Shandong Province in east China. Enditem