The Cigarette Market in Italy

Product Code: CG0146MR

Published Date: April 2015

Report Price: US$ 975 (Single Copy)

Synopsis “Cigarettes in Italy” report is a qualitative report providing extensive and highly detailed consumption

data on the Cigarettes industry in Italy.

This report is the result of ERC’s extensive market research covering Cigarettes across Italy.

The report provides consumption data based upon a unique combination of industry research,

fieldwork, market sizing work and our in-house expertise in the Cigarettes industry in order to

offer extensive data about the trends and dynamics affecting the Cigarettes industry.

This report is aimed at companies operating in the Cigarettes industry and for new companies

considering entry into Cigarettes industry.

This report provides detailed data of the manufacturers operating in the Cigarettes industry in

Italy.

This report also provides market size of the Cigarettes industry in Italy along with other data

relating to the regulations, retail price, smoking population, production & trade and forecast

data

Summary “The Cigarette Market in Italy” is a new report by ERC that focuses on the extent to which Italy

Cigarettes market has evolved in line with changing smoking habits, the competitive environment and

economic developments, as well as analyzing the implications market realignments have had on top

multinational companies.

Scope

This report provides a comprehensive analysis of Cigarettes market in Italy

It provides volume and per-capita consumption of cigarettes for 2013 and forecast figures for

2023

It provides value and volume break-up of the Cigarettes market at segment level.

Reasons to Buy Cigarettes companies require a detailed understanding of Cigarettes consumption in order to align

their sales and marketing efforts with the latest trends in the market. This report clarifies in detail, by

region and company, where the growth opportunities are in Cigarettes industry to enable effective

marketing plan

As consumers’ product demands evolve, the dynamics between different countries also change –

favoring some countries and leaving others increasingly out of line with demand patterns. As a result,

understanding the shifting market dynamics is key to ensuring maximum sales in the future

The differing growth rates in overall regional product sales drive fundamental shifts in the market. This

report provides detailed, authoritative data on these changes for marketers

The report provides the latest data on market dynamics in the Cigarettes industry across Italy,

providing marketers with essential data in order to understand their own position in the market and to

identify where to compete in the future

1 Market Size

The Italian cigarette market is one of the largest in Western Europe although recently sales have been

in decline. Volumes dropped by 6% in 2013 to stand almost 20% behind 1990 levels. Until recently

Italy was one of the most buoyant cigarette markets in Western Europe. Consumption had been fairly

stable during much of the 1990s and experienced a significant upturn from 1998 onwards.

Cigarette Consumption, 1990-2014

Million Pieces % Annual Change Index 1990 = 100.0

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

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2003

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2005

2006

2007

2008

2009

2010

2011

2012

2013

2014f

Per Capita Consumption, 1990-2014

Per Capita Consumption

Population Millions

Pieces/Day Pieces/Week Pieces/Year % Change Index 1990 = 100.0

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014f

Retail Sales, Value, 1990-2014

Litre

Billion € Million

% Annual Change

Index 1990=100.0

Per Capita

‘000 Litre €

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005e

2006e

2007e

2008e

2009e

2010e

2011

2012

2013

2014f

2 Production and Trade

In 2010, production is estimated some 11.2% ahead of 2009 levels, but BAT Italia ceased production

at Lecce at the end of December 2010. The result has been a major slump in output in 2011.

Production of Cigarettes, 1990-2013

Million Pieces % Annual Change Index 1990 = 100.0

1990

1991

1992

1993

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1995

1996

1997

1998

1999

2000

2001

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2012

2013

Imports of Cigarettes, 1990-2013

Million Pieces % Annual Change Index 1990 = 100.0 As % of Consumption

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

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Exports of Cigarettes, 1990-2013

Million Pieces % Annual Change Index 1990 = 100.0 As % of Production

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011r

2012

2013

Methodology

ERC’s research methodology includes the following steps in order to ensure a robust research programme to deliver the highest quality market insights: Information Scanning Thorough investigation of all published sources worldwide to highlight gaps and decide means of obtaining information requirements. Economic Intelligence Gathering all relevant: • Statistical data • financial information • Industrial data • economic information Collection of Published Research A thorough search to identify and obtain relevant published material using: • Media sources • corporate literature • Trade journals • on-line services • ERC databank • national press • Research institutes. In-Country Research Field research conducted in each country designed to: • collect informed and up-to-date information from interviews to gauge attitudes, expectations and current market developments. • monitor product and brand availability, prices and facings allocation through specially commissioned retail store checks. In-House Research & Analysis Based on a solid knowledge of the current market scenario and years of experience in the area of global tobacco market research, further telephone interviews are carried out with leading manufacturers and industrial competitors. The result is first-hand knowledge of new product developments, user-ship patterns, new investments and inherent market trends.

About ERC – a division of Canadean

Canadean is a full-service business information provider with in-house market research capabilities. We specialize in analysis across the Consumer Markets Value Chain, covering suppliers, producers, distribution, and consumers. Canadean’s dedicated research and analysis teams consist of experienced professionals with an industry background in marketing, market research, consulting, and advanced statistical expertise. We offer value-added market research, insight, and strategic analysis and our products help companies to make better, more informed, strategic and tactical sales, and marketing decisions. Canadean’s areas of expertise include online research, qualitative and quantitative research, industry analysis, custom approaches, and actionable insights. In addition, Canadean has built a network of consultants and specialist researchers across more than 60 countries, each with in-depth industry experience and expertise enabling us to conduct unique and insightful research via our trusted business communities. ERC's analysts and researchers are thoroughly experienced within the tobacco industry, with over 30 years’ experience of researching this challenging area. Their knowledge & expertise of specific market drivers, industry developments as well as regulatory and operating constraints in tobacco industry, ensure that clients benefit completely from ERC's high standards of research methodology and industry insights.

Disclaimer

All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher, Canadean. The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please note that the findings, conclusions and recommendations that Canadean delivers will be based on information gathered in good faith from both primary and secondary sources, whose accuracy we are not always in a position to guarantee. As such, Canadean can accept no liability whatsoever for actions taken based on any information that may subsequently prove to be incorrect.

Related Reports

The Cigarettes Market in Cyprus

The Cigarettes Market in Finland

The Cigarettes Market in France

The Cigarettes Market in Germany

The Cigarettes Market in Greece

The Cigarettes Market in Ireland

The Cigarettes Market in Italy

The Cigarettes Market in Malta

The Cigarettes Market in Netherlands

The Cigarettes Market in Norway

Table of Contents

Overview 1-2

Market Size 3-8

Cigarette Consumption, 1990-2014 4

Cigarette & RYO Sales, 2000-2014 5

Per Capita Consumption, 1990-2014 6

Consumption Including Non-Duty Paid Supplies, 1990-2013 7

Retail Sales Value, 1990-2014 8

Market Structure 9-12

Consumption by Type, Filter vs Plain Cigarettes, 1990-2013 9

Cigarette Sales by Price Sector, 2009-2011 9

Cigarette Sales by Price Sector, 2013 & 2014 10

Manufacturers & Brands 13-22

Manufacturer Sales & Market Shares, 2000-2014 15

Brands Family Shares, 2000-2013 17

Cigarette Brand Numbers, 2002-2011 17-18

Taxation & Retail Prices 23-36

Taxation 23-25

The Structure of Taxation, 2005-2014 24

EU Countries, Retail Price & Tax Incidence Comparison, 2014 26

Retail Prices 27-36

Retail Price Trends, Most Popular Price Category, 1990-2014 28

Retail Prices: Leading Brand Families, 2004-2015 29

Retail Prices: Selected Brands, 2005-2015 30

Retail Prices, January 2015 31-36

The Smoking Population 37-40

Smoking Population, 1990-2013 37

Smoking Population by Age & Gender, 2001, 2003, 2008 & 2013 38

Prevalence of Cigarette Smoking by Age & Gender, 2011 39

Smoking Prevalence by Region & Gender, 2009 39

Smoking Prevalence by Region, 2001-2005 39

Daily Cigarette Consumption, 1998-2003 40

Production & Trade 41-46

Production 41-42

Production of Cigarettes, 1990-2013 41

Imports 42-44

Imports of Cigarettes, 1990-2013 43

Imports of Cigarettes by Country of Origin, 2000-2013 44

Exports 44-45

Exports of Cigarettes, 1990-2013 45

Operating Constraints 47-50

Advertising Restrictions 47

Health Warnings/Labelling Requirements 47-48

Other Restrictions 48-50

Company Profiles 51-52

BAT Italia SpA 51

Prospects & Forecasts 53-55

Consumption Forecasts to 2023 55