China’s Low Tar Cigarette Keeps Fast Development in First Nine Months

Source from:  Tobacco China Magazine 11/27/2012

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 the first nine months 2012.

From January to September 2012, the tobacco industry reached record highs over 250 billion cigarettes (5 million cases) and 245 billion cigarettes (4.9 million cases) in the production and the marketing of low-tar-level cigarettes (with a tar level of 8mg or lower) respectively, and among it, the output and sales volume of cigarette with a tar level of 6mg or lower both reached 10 billion cigarettes (0.20 million cases) and 9.5 billion cigarettes (0.19 million cases) respectively.

Judged by the situation of development of low-tar-level cigarettes production and marketing in China in the first nine months 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 reached over 200 billion cigarettes (4 million cases) and near 200 billion cigarettes (4 million cases) respectively. And among it, the output and sales volume of cigarette with a tar level of 6mg or lower both reached 8.5 billion cigarettes (0.17 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 30 billion cigarettes (0.6 million cases), Lanzhou, over 27.5 billion cigarettes (0.55 million cases).  Judged by output and sales volume of single brand of cigarette with a tar level of 6mg or lower, the top three brands, Zhongnanhai, Huanghelou and Septwolves, were key brands, with the output and sales volume of Zhongnanhai both reaching 2 billion cigarettes (0.04 million cases), and Huanghelou and Septwolves both over 1 billion cigarettes (0.02 million cases). 

From January to September 2012, both the production and marketing of low-tar-level cigarettes went up relatively sharply over 90 percent. And both the production and marketing of cigarettes with a tar 6mg or lower increased by 50 percent.

In the first nine months, 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 18 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 27.5 billion cigarettes (0.55 million cases) in the period. With the Top Three producers respectively being Shanghai Tobacco Group in east China’s Shanghai, China Tobacco Hubei Industrial Corporation, Xiamen Tobacco Industrial Corp. and whose output of cigarettes with a tar 6mg or lower each topped 1.5 billion cigarettes (0.03 million cases) in the period.

In the first nine months, 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 (0.2 million cases) or more in 8 of total 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 sales volume in them respectively reaching 17.5 billion cigarettes (0.35 million cases). And the Top Three provincial-level markets on term of growth were respectively Fujian Province in east China, Shandong Province in east China and Jiangsu Province in east China, with the sales volume of cigarettes with a tar 6mg or lower in them respectively reaching 0.5 billion cigarettes (0.01 million cases). Enditem