Despite the Rising Taxation Rate, Most Large Cigarettes Producers Made Significant Gains in the Chinese Tobacco Market

Research and Markets (http://www.researchandmarkets.com/reports/c53148) has announced the addition of the Euromonitor International report: Tobacco in China to their offering.

Our Tobacco in China report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data (2000-2005), allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market – be they new legislative, distribution or pricing issues. Forecasts to 2010 illustrate how the market is set to change.

Product coverage includes: cigarettes, cigars and smoking tobacco

Data coverage: market sizes (historic and forecasts), company shares, brand shares and distribution data

Why buy this report?

Get a detailed picture of the tobacco industry

Pinpoint growth sectors and identify factors driving change

Understand the competitive environment, the market’s major players and leading brands

Use five-year forecasts to assess how the market is predicted to develop

Topics Covered Executive Summary Volume and Value Sales Expand Strongly Mid Tar Gains as Premium-priced Cigarettes Shrink China Becomes the 89th Country to Ratify the FCTC Industry Reform Sees More Action Than Retail Lack of Market Cultivation Effort Hampers Cigars Bright Outlook as the Large Population Continues to Light Up Key Trends and Impact Assessment Smoking Population Death by Cause Legislation Tar Health Warnings Duty Paid Packet Marks Advertising & Sponsorship Smoking in Public Places Sales Outlets Regulated in Major Cities Litigation Taxation and Duty Levies Contraband (cigarettes) Production/imports/exports The Role and Effect of Cannabis/marijuana Cigarettes: Price Bands Cigarettes: Filter Splits Cigarettes: Pack Splits Market Indicators Market Data Definitions

Summary

Mid tar gains as premium-priced cigarettes shrink

The fastest-growing sectors of the market during 2005 were mid tar cigarettes, thanks to deepened penetration and considerable efforts in new product development, promoted by the government to combat rising health concerns regarding smoking. With the mid tar and low tar sectors accounting for an extremely tiny share of the market, there is much potential for strong sales growth during the forecast period.

During 2005, premium and mid-priced products performed well across the regions in line with the rising trends of higher consumption power, coupled with high levels of activity in the premium segment. However, there was also strong growth in certain traditional economy areas, mostly famous high tar brands, triggered by vigorous launches of brand-extension new products. Despite the rising taxation rate, most large cigarettes producers made significant gains in the review period.

China becomes the 89th country to ratify the FCTC

China became the 89th country to ratify the Framework Convention on Tobacco Control (FCTC) in 2005, the international tobacco treaty negotiated under the auspices of the World Health Organisation (WHO).

Implementation of the treaty was carried out swiftly, including the setting up a coordination institution involving several critical state ministries. In five years time, a comprehensive ban on tobacco advertising, marketing and promotion, replacement of warnings on cigarette packs, increased taxation on tobacco, and smoke-free public spaces and workplaces are expected to reduce the illnesses caused by tobacco and curb healthcare costs relating to tobacco considerably.

Industry reform sees more action than retail

Continuous merger and acquisition activities, breakthroughs in international cooperation and revised policies on tariffs, supply coordination and product profile made 2005 a breathtaking reform year for tobacco industry.

The ongoing reform involves the formation of 10 giant manufacturers, cutting down of the tariffs, establishing production or research and development alliances with multinationals, creating “supply to order” model in regional retail market, and decreasing the average tar level to nearly 12mg in 2005.

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