The tobacco industry of China was generally in a trend of steady growth in 2008, characterized with balanced increases in both production and marketing, rational maintenance of cigarette inventories, improvement of the structure of cigarette products, stable growth of efficiency, fine market performance of key cigarette brands, and obvious strengthening of overall competitiveness.
CIGARETTE PRODUCTION
In 2008, the tobacco industry produced a total of 2,205.9 billion cigarettes (44.118 million cases), an increase of 80.2 billion cigarettes (1.604 million cases), or 3.8 percent, over the level of 2,125.7 billion cigarettes (42.514 million cases) in 2007.
CIGARETTE SALES
In 2008, the tobacco industry sold a total of 2,180.5 billion cigarettes (43.61 million cases), an increase of 56.15 billion cigarettes (1.123 million cases), or 2.6 percent, over the level of 2,124.35 billion cigarettes (42.487 million cases) in 2007.
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The average monthly cigarette sales volume in the year reached 181.7 billion cigarettes (3.634 million cases), an increase of 4.65 billion cigarettes (93,000 cases) over the monthly average of 177.05 billion cigarettes (4.541 million cases) in 2007.
Also in 2008, the proportions of Grades One, Two and Three cigarettes in the total cigarette sales volume respectively went up 1.3 percent, 3.5 percent and 1.8 percent year-on-year, while the proportions of Grades Four and Five cigarettes respectively went down 1.8 and 4.8 percent year-on-year.
CIGARETTE INVENTORIES
At the end of December 2008, the cigarette inventories held by the tobacco industry of China amounted to 152.35 billion cigarettes (3.047 million cases), an increase of 29.45 billion cigarettes (589,000 cases) over the level of 122.9 billion cigarettes (2.458 million cases) at the end of December 2007.
LOW-GRADE CIGARETTES
In 2008, the tobacco industry sold a total of 590.15 billion low-grade cigarettes (11.803 million cases), an excess of 9.65 billion cigarettes (193,000 cases) over the low-cigarette sales base volume of 580.5 billion cigarettes (11.61 million cases) for the year.
KEY CIGARETTE BRANDS
In 2008, the tobacco industry of China sold 2,119.61 billion cigarettes (42.392 million cases) of the Top 100 Chinese cigarette brands, an increase of 4.1 percent over 2007, accounting for 97.2 percent of the total cigarette sales nationwide.
In the year, the sales volume of the Top 10 Chinese cigarette brands reached 863.8 billion cigarettes (17.276 million cases), accounting for 39.6 percent of the total cigarette sales nationwide.
Also in the year, the total number of cigarette brands in production in China was 155, down 20 from the level 175 in 2007. The total number of cigarette specifications in production in China was 871, down 5 from 2007. The average single-brand output was 14.25 billion cigarettes (285,000 cases) in the year, up 2.1 billion cigarettes (42,000 cases), or 17.3 percent, over the level 12.15 billion cigarettes (243,000 cases) in 2007.
In 2008, the degree of concentration of Grades One and Two cigarettes went up year-on-year. The annual sales volume of 13 cigarette brands topped the level of 50 billion cigarettes (1 million cases) in the year. Meanwhile, the annual sales value of 21 cigarette brands topped the level 10 billion yuan (1.43 billion U.S. dollars). Enditem
