Australia Cigarettes Market Declined by 3% in 2012

Source from:  Trans World News  04/15/2014

Cigarette volume sales declined by 3% in 2012 to 19 billion sticks. The decline in volume was attributed to a movement towards RYO products, thanks to the lower unit prices found in this category, and the impact of the anti-smoking lobby in Australia. The decline in volume sales was less in 2012 than in previous years, especially 2010, reflecting changing rises in excise duty.

The Australian cigarettes category is dominated by three multinational players: British American Tobacco Australia Ltd, Philip Morris (Australia) Ltd and Imperial Tobacco Australia Ltd. In retail volume terms, other companies represented just 1% of sales in 2012.

The impact of plain packaging on retail sales in Australia is a key concern for operators moving into the forecast period. The cigarettes category is expected to see constant value sales decline at a CAGR of 4% over the forecast period. During this period volume sales are also expected to decline at a CAGR of 4%. The fall in volume sales represents a continuation of trends seen over the review period. The Australian Government's excise revenue projections are steady, implying declines will not be rapid following the introduction of plain packaging. Enditem