China's Tobacco Industry in Favorable Development of Low-Tar-Level Cigarettes Production, Marketing in Jan. 2012

Source from:  Tobacco China Magazine 04/20/2012

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 Jan. 2012 as that of the whole of 2011. In January 2012, the tobacco industry reached record highs in both the production and marketing of low-tar-level cigarettes (with a tar level of 8mg or lower), with the output hitting 45.20 billion cigarettes (0.90 million cases), and with the sales volume hitting 37.125 billion cigarettes (0.74 million cases).

Judged by the situation of development of low-tar-level cigarettes production and marketing in China in Jan. 2012, key cigarette brands designed by the State Tobacco Monopoly Administration were the leading forces in the development of low-tar-level cigarettes production and marketing. Of all the 30 low-tar-level cigarette brands in production, 24 were key brands. Meanwhile, of the 31 low-tar-level cigarette brands in marketing, 24 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 41.23 billion cigarettes (0.825 million cases), accounting for 91.21 percent of the total cigarette output by China's tobacco industry, while the sales volume of low-tar-level of cigarettes of key brands reached 33.52 billion cigarettes (0.67 million cases), accounting for 90.29 percent of the total cigarette sales volume by the tobacco industry. In January 2012, both the production and marketing of low-tar-level cigarettes went up relatively sharply, with the output going up by 34.78 billion cigarettes (0.695 million cases) year-on-year, and with the sales volume going up by 26.79 billion cigarettes (0.5359 million cases) year-on-year. There were 3 brands including the Yellow Crane Tower, Mount Changbai and Lanzhou, whose output of low-tar-level cigarettes each over 5 billion cigarettes (100,000 cases), and 2 brands including the Yellow Crane Tower, Mount Changbai, whose sales volume each over 5 billion cigarettes (100,000 cases) in the period. In particular, the output of the Yellow Crane Tower and Mount Changbaishan both went up by 5 billion cigarettes (100,000 cases), while the sales volume of the Yellow Crane Tower went up by 5 billion cigarettes (100,000 cases). In 2011, Chinese tobacco manufacturing enterprises all strengthened efforts for developing, producing and marketing low-tar-level cigarettes. There were 26 tobacco manufacturing enterprises producing low-tar-level cigarettes in China, 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, China Tobacco Gansu Industrial Corporation, in west China's Gansu Province, and whose output of low-tar-level cigarettes each topped 5 billion cigarettes (100,000 cases) in the period. In January, commercial enterprises of the tobacco industry made great efforts to promote sales of low-tar-level cigarettes. They realized an sales volume of low-tar-level cigarettes to the tune of 0.5 billion cigarettes (10,000 cases) or more in 20 provincial-level markets in the period. In particular, the Top Three provincial-level markets were respectively Hubei Province in central China, Gansu Province in northwest China and Jilin Province in northeast China, with the sales volume in them respectively reaching 6.04 billion cigarettes (0.1208 million cases), 3.28 billion cigarettes (65,600 cases) and 2.62 billion cigarettes (52,400 cases). Enditem