Table of Contents
Introduction and Abbreviations
-
- Definitions
- Consumer research
- ACORN
- Advertising data
- Abbreviations
Premier Insight
-
- Phone a friend
- Celebrity quitters
- Why weight?
Executive Summary
-
- Cigarette volumes down, while NRT sales remain strong
- High taxes influence market
- The impending smoking ban
- Ultra-low-priced cigarettes thrive, while NRT gum increases its share
- Imperial and Gallaher lead the cigarette market…
- …while pharma giants dominate cessation aids
- Advertising – life after the ban
- Multiples and pharmacies key in distribution
- Smokers in decline as more try to kick the habit
- Smokers
- Quitters
- A challenging future
Market Drivers
-
- Average EU pack price
-
- Figure 1: Price and tax breakdown on pack of 20 cigarettes across the EU, 2005
- Wide variation in prices across EU
- UK pack price is mostly tax
- Revenue losses
-
- Figure 2: Revenue losses (excise tax and VAT) from the non-duty-paid cigarette trade, 2000-04
- Non duty paid sales thrive
- Smuggling costs us all
- Retailers lose out
- Counterfeit cigarettes
- Taking on the counterfeiters
- Health issues and the anti-smoking lobby
- The ban – the Irish experience
- The cost of smoking
- The cost of quitting
Market Size and Trends
-
- Cigarettes
- Volume sales decline
-
- Figure 3: UK retail sales of duty-paid cigarettes, by volume, 2001-06
- Trend to lighter consumption depresses volume
- High taxes buoy value…
-
- Figure 4: UK retail sales of duty-paid cigarettes, by value, 2001-06
- …but cut price trend limits growth
- Smuggling still significant
-
- Figure 5: UK duty-paid and non-duty-paid sales of cigarettes, by volume, 2001-06
- Small decline in non-duty-paid
- Rising prices favour HRT
-
- Figure 6: Cigarette and HRT cigarette equivalent sales (duty-paid and non-duty-paid), by volume, 2001-06
- Changing image
-
- Figure 7: Gender profile of hand rolling tobacco smokers, 2005
- RYO evolves
- Smoking cessation aids
- Cessation programmes aid growth
-
- Figure 8: UK retail sales of nicotine replacement products, by value, 2001-06
Market Segmentation
-
- Greatest growth at value end
-
- Figure 9: UK retail volume sales of duty-paid cigarettes, by price category, 2001-05
- Premium and mid prices hit hardest
- Average price per 20 pack
-
- Figure 10: Typical UK retail prices of cigarettes per pack of 20, by price category, 2002-06
- Smoking cessation aids
-
- Figure 11: UK retail sales of nicotine replacement products, by type and value, 2001-05
- Patches and gum lead the way
The Supply Structure
-
- Cigarettes
- Home production and foreign trade
-
- Figure 12: UK cigarette production, by volume, 2001-05
- Manufacturer shares
- Imperial reigns
-
- Figure 13: Cigarette manufacturers' UK market shares of duty-paid sector, by volume, 2003 and 2005
- BAT loses out
- Innovation at the premium end
- Companies and brands
- Imperial Tobacco Group
- Gallaher Group
- Philip Morris International
- BAT (Rothmans)
- Smoking cessation aids
- Brand shares
- Pharma giants dominate
-
- Figure 14: Manufacturers’ shares of smoking cessation aids market, by value, 2003 and 2005
- Companies and brands
- Cedar Health
- GlaxoSmithKline
- Novartis Consumer Health
- Pfizer
Advertising and Promotion
-
- Smoking cessation aids
- Above the line
-
- Figure 15: Main monitored media advertising expenditure on smoking cessation aids, 2001-05
- Advertising by brand
-
- Figure 16: Main monitored media advertising expenditure on smoking cesssation aids, by brand, 2003-05
- GSK – NiQuitin CQ
- Pfizer – Nicorette
- Novartis – Nicotinell
- Cigarettes – life after the advertising ban
- Emphasis on merchandising and display
Distribution
-
- Cigarettes
- Grocers and CTNs lead sales
-
- Figure 17: UK retail distribution of duty-paid cigarettes, by value, 2003 and 2005
- Multiples grow share
- Forecourts an important destination
- Smoking cessation aids
- Pharmacies maintain their lead…
-
- Figure 18: UK retail sales of smoking cessation aids, by outlet type and value, 2003 and 2005
- …but independent pharmacies lose out
- Availability on prescription
The Consumer
-
- Smoking habits
- Consumption trends
-
- Figure 19: Trends in cigarette smoking, 2001-05
- Heaviest smokers drop first
- Tracking the quitters
-
- Figure 20: Cigarette smokers who are trying to give up, 2001-05
- Half of smokers try to quit
- Under-35s unhappy with the habit
- Older smokers less likely to attempt to quit
- The influence of children
- The North/South divide
- Types of cigarette smoked
-
- Figure 21: Type of cigarettes smoked, 2001-05
- Lights consumption in decline
- Cessation methods used
-
- Figure 22: Methods used to try and give up smoking, 2002-05
- Patches prove most popular
The Consumer – Detailed Demographics
-
-
- Figure 23: Cigarette smoking, by demographic sub-group, 2005
-
- Figure 24: Cigarette smokers who are trying to give up, by demographic sub-group, 2005
-
The Consumer: Attitudes and Typologies
-
-
- Figure 25: Smoking and non-smoking, November 2005
- The young want to kick the habit
-
- Figure 26: Attitudes to smoking, by smokers and non-smokers, November 2005
- Financial concerns top the list
- Low objections to the ban
- Health concerns hit home in the late twenties
- ABs the least tolerant
- Smokers’ attitudes to giving up
-
- Figure 27: Attitudes towards giving up smoking, November 2005
- Cold turkey for one in four
- The first step and ‘giving up giving up’
- Quitters need a helping hand
- Other barriers and incentives
- The Consumer – Typologies
-
- Figure 28: Consumer target groups, November 2005
- Pro-choice, but at a Price
- Demographics of Pro-choice, but at a Price:
- Smokers’ Rights
- Demographics of Smokers’ Rights:
- Anti-smokers
- Demographics of Anti-smokers:
-
The Consumer – Attitudes and Typologies: Detailed Demographics
-
-
- Figure 29: Smoking and non-smoking smoking, by gender, age, socio-economic group, region, marital status, presence of children, working status and lifestage, November 2005
-
- Figure 30: Smoking and non-smoking, by Mintel’s Special Groups, media usage, household size, ACORN category, TV viewing and supermarket usage, November 2005
-
- Figure 31: Most popular attitudes to smoking, by gender, age, socio-economic group, region, marital status, working status, presence of children and lifestage, November 2005
-
- Figure 32: Most popular attitudes to smoking, by Mintel’s Special Groups, media usage, household size, ACORN category, TV viewing and supermarket usage, November 2005
-
- Figure 33: Further attitudes to smoking, by gender, age, socio-economic group, region, marital status, working status, presence of children and lifestage, November 2005
-
- Figure 34: Further attitudes to smoking, by Mintel’s Special Groups, media usage, household size, ACORN category, TV viewing and supermarket usage, November 2005
-
- Figure 35: Consumer typologies, by gender, age, socio-economic group, ACORN category and lifestage, November 2005
-
- Figure 36: Consumer typologies, by region, presence of children, Mintel’s Special Groups and media usage, November 2005
-
- Figure 37: Consumer typologies, by supermarket usage and commercial TV viewing, November 2005
-
- Figure 38: Cross-tabulation of consumer typologies by smoking habits, November 2005
-
The Future
-
- Volumes to decline further
- Premium innovations
- Brand extensions the way forward for manufacturers
- Uncertainty ahead following ban
- Exploring new avenues
- Cessation aids to benefit from the ban
Forecast
-
- Cigarettes
-
- Figure 39: Forecast of the UK duty-paid cigarette market, by volume and value, 2006-11
- Going out of style fast
- Smoking cessation aids
-
- Figure 40: Forecast of UK retail sales of nicotine replacement products, by value, 2006-11
- Factors used in the forecast
Back to top