Navigation Links
Cigarette and Tobacco Product Manufacturing in Australia Industry Market Research Report Now Updated by IBISWorld
Date:7/25/2013

Melbourne, Australia (PRWEB) July 26, 2013

While the Cigarette and Tobacco Product Manufacturing industry in Australia is restricted to two companies, competition is fierce. Heavy government regulation makes it very difficult for players to thrive, leading the companies to become battle hardened in their tactics. IBISWorld industry analyst Craig Shulman states “demand for cigarettes has declined over the past five years as increasing health concerns, anti-smoking campaigns, increasing regulations and higher excise taxes discourage smoking.” Recent regulatory restrictions include state bans on indoor smoking, state retail display bans and the introduction of plain packaging in December 2012. Plain packaging is expected to have a significant effect on the industry, leading revenue to decline by 4.4% in 2013-14 to reach $1.8 billion.

Demand for the industry's products is considered relatively price inelastic. However, increases in prices and excise taxes are expected to lead to lower demand. Excise taxes, which are excluded from the industry, have risen over the past five years. This has been driven by the Federal Government's 25.0% increase in excise tax in April 2010, which has pushed up prices for tobacco products in the past two years. Despite these burdens, revenue after excise taxes is expected to only decline at an annualised 0.2% over the five years through 2013-14, indicating near stagnation. According to Shulman, “Producers have been able to benefit from consumers choosing to move from purchasing high price cigarettes to unpackaged tobacco, which is used with roll-your-own cigarettes.” This shift has allowed producers to focus more on unpackaged tobacco, which costs less to manufacture. As a result, profit margins have increased over the past five years. Over the next five years, the Cigarette and Tobacco Product Manufacturing industry is expected to continue to endure rising government regulation in the form of increasing health regulations, rising excise taxes and increased spending on intense anti-smoking campaigns. Further declines in the national smoking rate will reduce the size of the market. Higher prices are expected to offset some of this. However, the shift to unpackaged tobacco is anticipated to continue, undercutting potential revenue growth while bolstering profit margins.

The industry has a very high level of concentration, as there are only two manufacturers that operate in Australia. The companies operate globally and have manufacturing facilities in Australia. In global terms, there has been a high degree of merger and acquisition activities. However, the number of companies operating in Australia has remained at two over the past five years. The two industry players are British American Tobacco (Australian Holdings) and Philip Morris (Australia). For more information, visit IBISWorld’s Cigarette and Tobacco Product Manufacturing report in Australia industry page.

Follow IBISWorld on Twitter: http://twitter.com/#!/ibisworldau

IBISWorld industry Report Key Topics

Companies in the industry manufacture smoking tobacco products. These are sold to specialist tobacco wholesalers and retailers, general grocery distributors, supermarkets and convenience stores. Specifically, the products included in the industry are cigarettes, cigars and smoking tobacco. Smokeless tobacco is banned in Australia and therefore not included. Industry revenue does not include excise taxes.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
International Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Industry Globalisation
Major Companies
Operating Conditions
Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.

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 every Australian industry. 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 Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.

Read the full story at http://www.prweb.com/releases/2013/7/prweb10954341.htm.


'/>"/>
Source: PRWeb
Copyright©2012 Vocus, Inc.
All rights reserved

Related medicine news :

1. Denormalizing smoking: Making the case for banning cigarettes in parks and on beaches
2. A survey of GPs reveals that many identify nicotine as a harmful cigarette-smoke component
3. Louisiana Shelves Proposed Tax Hike On Cigarettes, But Local Insurance Agents At Cunningham Financial Group Offer Advice For Quitting
4. Warning images for cigarette packs proposed by Europe do not make enough emotional impact
5. Study adds to evidence that cigarettes are gateway to marijuana
6. Water Pipe No Safer Than Cigarettes: Study
7. U.S. Supreme Court Rejects Challenge to New Cigarette Labeling
8. Even a few cigarettes a day increases risk of rheumatoid arthritis
9. Water-pipe smoking may not be a safe alternative to cigarette smoking
10. Stimulating the brain blunts cigarette craving
11. Tobacco companies keep people smoking despite UK cigarette tax increases
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:2/8/2016)... ... February 08, 2016 , ... Stephanie Hebert Insurance Agency, ... of a new charity campaign. As part of their ongoing community involvement program, ... the belief that children deserve a voice, and in the spirit of neighbors ...
(Date:2/8/2016)... ... February 08, 2016 , ... Brenton ... for pouches, bags, and flow wrapped products at WestPack 2015, February 9-11, in ... manufacturers step up to semi-automatic or fully-automatic case packing with a small footprint, ...
(Date:2/8/2016)... ... 08, 2016 , ... Steve Helwig & Associates Insurance & Financial, serving the ... has teamed up with Citizens Opposed to Domestic Abuse in support of its efforts ... all those victimized by the fear of violence in their own homes, donations may ...
(Date:2/8/2016)... ... 2016 , ... Delta Dental of California and its affiliated companies announced today ... Radine, who recently retired as president and CEO of Delta Dental of California and ... the Year , helped lead the effort to raise funds for studies to strengthen ...
(Date:2/8/2016)... ... February 08, 2016 , ... Eating disorders and post-traumatic stress ... women and men with eating disorders report a history of trauma, research suggests ... of an eating disorder. , At the 2016 iaedp Symposium, the workshop, ...
Breaking Medicine News(10 mins):
(Date:2/8/2016)... YORK, Pa. , Feb. 8, 2016  Unilife Corporation ... developer and supplier of injectable drug delivery systems, today announced ... and six months ended December 31, 2015 after market close ... not scheduled a conference call to discuss these financial results.  ... About Unilife Corporation --> About Unilife ...
(Date:2/8/2016)... 8, 2016  Sangamo BioSciences, Inc. (NASDAQ: ... announced that the U.S. Food and Drug Administration ... (IND) application for SB-318, a single treatment strategy ... Type I (MPS I). The SB-318 IND application ... a Phase 1/2 clinical study (SB-318-1502) designed to ...
(Date:2/8/2016)... Feb. 8, 2016  CTI BioPharma Corp. (CTI BioPharma) ... written communication from the U.S. Food and Drug Administration ... placed a partial clinical hold on the clinical studies ... application for pacritinib. This clinical hold impacts part of ... and will also affect planned clinical trials. ...
Breaking Medicine Technology: