The Cigarette Market in Spain

Product Code: CG0151MR

Published Date: April 2015

Report Price: US$ 975 (Single Copy)

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

consumption data on the Cigarettes industry in Austria.

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

Austria. 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

Austria.

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

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

forecast data

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

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 Austria

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 Austria,

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

Spain is a large and for much of the review period had been a relatively buoyant cigarette market; the

increase recorded in 2004 being the fifth consecutive year of positive growth, resulting in sales 13.8%

above 1990 levels. However, the market suffered a minor 0.6% decline in 2005 with a further 2.8%

drop recorded in 2006, following two tax rises early in the year and the imposition of a minimum excise

tax for the first time in Spain. In 2007 sales were down by 1.1% but staged a recovery in 2008, rising

by 1.3%. However, this proved a short-lived boost and since then the market has suffered a steep

downturn, dropping by 9.9% in 2009, by 11% in 2010, and by an accelerated rate of 16.7% in 2011,

some 26.4% below 1990 levels. The marked downward trend continued in 2012 and 2013 with

volumes down more than 11% over consecutive years, although the rate of decline is forecast slowed

to just 1.5% in 2014.

Cigarette Consumption, 1990-2014

Million Pieces % Annual 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

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 Including Border Sales, 1990-2014

Ptas Billion

€ Million

% Annual Change

Index 1990 = 100.0

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

Cigarette production is reported to have increased by 5.8% from 2012 levels, in 2013. Production data

for cigarettes in Spain during the 1990s included not only cigarettes by Tabacalera/Altadis in its own

factories on the Spanish mainland, but also production by the group's 50% owned subsidiaries and

associates in the Canary Islands, these being Grupo CITA, Philip Morris España (until December

1998) and JT International España (previously RJR España), subsequently also wound up.

Production of Cigarettes, 1990-2013

Million Pieces

% Change Year-on-Year

Index 1990 = 100.0

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009e

2010e

2011e

2012e

2013e

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

2006

2007

2008

2009

2010

2011

2012

2013

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.

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Table of Contents

Overview 1-2

Market Size 3-8

Cigarette Consumption, 1990-2014 4

Consumption, Including Contraband Supplies, 1991-2014 6

Per Capita Consumption, 1990-2014 7

Retail Sales Value, 1990-2014 8

Market Structure 9-14

Market Breakdown, Dark vs Blond Cigarettes, 2000-2014 9

Market Breakdown: Plain vs Filter Cigarettes, 2000-2014 10

Market Breakdown by Price Segments, 2004-2014 11

Market Breakdown by Pack Size, 1998-2008 & 2013 12

Manufacturers & Brands 15-22

Manufacturer Sales & Market Shares, 2000-2014 19

Brands Families Shares, 2000-2014 21

Taxation & Retail Prices 23-38

Taxation 23-26

Structure of Taxation on Cigarettes, 1990-2014 24

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

Retail Prices 27-37

Retail Price Trends: Leading Brand Families, 2009-2015 29

Retail Prices, Cigarettes, 2006-2015 29-37

The Smoking Population 39-42

Smoking Population, 1990-2014 39

Smokers by Age & Gender, 2006 & 2012 40-41

Smoking Prevalence (OED Data), 1997-2007 41

Production & Trade 43-50

Production 43-44

Cigarette Production, 1990-2013 44

Imports 45-47

Imports of Cigarettes, 1990-2013 46

Imports by Country of Origin, 2000-2013 47

Exports 47-49

Exports of Cigarettes, 1990-2013 48

Exports by Country of Destination, 2000-2013 49

Operating Constraints 51-56

Advertising Restrictions 51-52

Health Warnings/Labelling Requirements 53

Other Restrictions 53-55

Company Profiles 57-58

Altadis SA (Imperial Tobacco Altadis) 57

Prospects & Forecasts 59-61

Consumption Forecasts to 2023 61