Tobacco Product Manufacturing in the UK Industry Market Research Report Now Updated by IBISWorld

April 28, 2013

The Tobacco Product Manufacturing industry is under fire with smoking rates in the UK having fallen from over 50% in the 1960s to 20% in 2011 as people became aware of the link between smoking and diseases such as cancer and the subsequent increase in government regulations on smoking. The industry is expected to continue to decline over the next five years through 2018-19 as older smokers die off or kick the habit whilst less young people take up smoking to replace them.

London, United Kingdom (PRWEB) April 29, 2013

The Tobacco Product Manufacturing industry is under fire. Since the 1960s, smoking rates in the United Kingdom have fallen from over 50% to 20% in 2011 as people became aware of the link between smoking and diseases such as cancer. Although the price of tobacco products is relatively static, there have been some rises, which have also contributed towards the decline in smoking rates. The price rises have also led to a shift away from premium brands towards economy brands. For instance, demand for roll-your-own cigarettes has increased at the expense of filter cigarettes.

According to IBISWorld industry analyst Steven Connell, “government measures designed to reduce smoking rates have added to the negative press surrounding health-related smoking risks and contributed to declining smoking rates”. Examples of regulations introduced over the past five years include an increase of the minimum age of purchase from 16 to 18 and the inclusion of pictorial health warnings on tobacco packages. Industry revenue is expected to fall at a compound annual rate of 2.9% over the five years through 2013-14 to reach £9.1 billion. This figure includes excise tax, which accounts for approximately 78% of industry revenue. Industry revenue is expected to decline 4.4% in 2013-14.

IBISWorld expects the industry will continue to decline over the next five years to 2018-19, as smokers die off or kick the habit, while less young people take up smoking to replace them. Connell adds, “cigarette consumption is expected to continue its downward trend, while regulation and taxes on tobacco increase”. Plain packaging of cigarette packets should deal a further blow to the industry over the next five years. Smokers are also expected to continue trading down from expensive cigarettes to cheaper cigarettes and hand-rolled varieties.

The Tobacco Product Manufacturing industry has a very high level of market share concentration with the top two companies, Imperial Tobacco and Gallaher, estimated to account for over 97% of industry revenue in 2012-14.

For more information on the Tobacco Product Manufacturing industry, including latest industry trends, statistics, analysis and market share information, purchase the full report from IBISWorld, the nation´s largest publisher of industry research.

IBISWorld industry Report Key Topics

This industry includes companies that manufacture cigarettes, fine-cut tobacco, cigars and pipe tobacco. The industry also includes companies that are involved in the stemming and re-drying of tobacco leaf.

Industry Performance

Executive Summary

Key External Drivers

Current Performance

Industry Outlook

Industry Life Cycle

Products & Markets

Supply Chain

Products & Services

Major Markets

Globalisation & Trade

Business Locations

Competitive Landscape

Market Share Concentration

Key Success Factors

Cost Structure Benchmarks

Barriers to Entry

Major Companies

Operating Conditions

Capital Intensity

Key Statistics

Industry Data

Annual Change

Key Ratios

About IBISWorld

Recognised as the nation´s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on many UK industries. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in London, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.co.uk or call (020) 3008 6568.

For the original version on PRWeb visit: http://www.prweb.com/releases/prweb2013/4/prweb10674842.htm

Source: prweb

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