<strong>China''s Tobacco Industry in Stable Development of Low-tar-level Cigarettes Production in First Five Months</strong>

Source from:  Tobacco China Magazine 07/18/2014

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 marketing and less production of low-tar-level cigarettes in first five months of 2014.

From January to May 2014, the tobacco industry reached record highs in marketing of low-tar-level cigarettes (with a tar level of 8mg or lower), and lower record in production of low-tar-level cigarettes (with a tar level of 8mg or lower). The output over 150 billion cigarettes, down less 1 percent year-on-year, and the sales volume about 162.5 billion cigarettes, up about 4 percent year-on-year, the growth rate slowed compared 22% of the same period of last year.

From January to May 2014, the output of low-tar-level cigarettes (with a tar level of 6mg or lower) reached 17.5 billion cigarettes, increased by over 16% year-on-year, the sales volume reached 19billion cigarettes, increased by about 18% year-on-year, the growth rate slowed compared 243% of the same period of last year.

Judged by the situation of development of low-tar-level cigarettes production and marketing in China in first five months of 2014, key cigarette brands were the leading forces in the development of low-tar-level cigarettes production and marketing. Of all the 35 low-tar-level cigarette brands in production and marketing, 28 were key brands.

As far as the scope of production and marketing was concerned, the output of low-tar-level cigarettes of key brands reached 132.5 billion cigarettes, accounting for 88 percent of the total low-tar cigarette output by China's tobacco industry in this period, while the sales volume of low-tar-level of cigarettes of key brands reached 145 billion cigarettes, accounting for 89 percent of the total low-tar cigarette sales volume.

From January to May 2014, the top 3 brands by sales volume are Huanghelou, Baisha, and Lanzhou. The sales volume of Huanghelou reached 13.5 billion cigarettes. Enditem