- China Tobacco market to reach USD 434 billion in 2018
- Rising Consumption Of Cigars is Expected to Drive the Future of China Tobacco Market
Ken Research announced its latest publication on “China Tobacco Market Outlook to 2018 – Driven by Rising Consumption of Cigars” which provides a comprehensive analysis of the various aspects such as the market size of Tobacco, Cigarettes, Cigar segments and future outlook of the industry. The report also covers the market shares of major players in China Tobacco Market.
China is the world’s most populous country owing to which the smoking population of China is the largest amongst the world. As a result of this, the cigarettes market has been witnessing prolific growth in the last few years. In terms of sales volume, the market showcased considerable growth at a CAGR of ~% from 2007-2013 and reached a sales volume of ~ million sticks in 2013. A large proportion of cigarettes sold in the country are majorly produced in the country itself by state owned enterprise.
The cigar market in China has been witnessing consistent growth in the last few years. The growing presence of international players coupled with increasing preference of high net worth and rich population to switch over to cigars from cigarettes have impelled the revenue of cigar market in China. In 2013, the cigar market generated annual revenue of worth USD ~ million which grew at a double digit CAGR of ~% from 2007. Rising urbanization amongst the people of China along with increasing disposable income have augmented their purchasing capacities for products such as cigars and other luxury form of tobacco products. This has impelled the revenue of cigar market during the last few years.
China cigarette market is majorly dominated by the sales of cigarettes manufactured by state owned enterprises which largely belong to China National Tobacco Corporation. However, the country has witnessed the growing demand of foreign tobacco brands in the country. These duty paid cigarettes are expensive which has provided huge impetus to the grey market of cigarette products in the last few years. However, certain initiatives such as cost minimization and increasing brand loyalty have led to a steep decline in the volume sales of illicit cigarettes in the country.
The CNTC manufactures more than ~ brands of cigarettes from low quality cigarettes targeted at rural farming regions up to premium and luxury cigarettes aimed at high net worth people and to consumers who prefer to buy prestige and luxury products. Leading companies such as BAT and PMI are dependent upon the CNTC to sell their brands in China. In the future, leading brands in China are expected to target adjacent countries in order to cater to the international demand of tobacco products. Currently, the Cigarettes brands of China are unknown outside the country but the growing presence of international brands in the country will influence the domestic brands to explore international market in the upcoming years.
According to the research report “the rising taxes and overall production costs of cigarettes augmented the price of cigarettes in the country. However, the consistent rise in the smoking population in the country has led to a prolific growth in the revenue of cigarettes market in China.”, according to the Research Analyst, Ken Research.
Key Topics Covered in the Report:
– Market Size by Revenue and Volume Sales
– Market Segmentation
– Trends and Development
– Competition and Market Share
– Growth Drivers
– Future Outlook
– Macro Economic Parameters
Companies Covered in the Report
China National Tobacco Corporation (CNTC)
Philip Morris International (PMI)
Imperial Tobacco Inc
British American Tobacco