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:6/27/2016)... , ... June 27, 2016 , ... ... mental health professionals, announced today its affiliation with Tennessee Counseling Association. ... to the network of the Tennessee Counseling Association, adding exclusive benefits and promotional ...
(Date:6/26/2016)... ... , ... On June 10-11, 2016, A Forever Recovery, a holistic treatment center ... Breakfast Table in Battle Creek, MI, where the rehabilitation facility is located. This annual ... the world’s leading providers of cereal and other breakfast foods. Its residents often refer ...
(Date:6/25/2016)... ... June 25, 2016 , ... Experts from the American ... Annual Research Meeting June 26-28, 2016, at the Hynes Convention Center in Boston. ... including advance care planning, healthcare costs and patient and family engagement. , AIR ...
(Date:6/25/2016)... ... June 25, 2016 , ... As a lifelong Southern Californian, Dr. Omkar ... M.D from the David Geffen School of Medicine at UCLA. He trained in Internal ... complete his fellowship in hematology/oncology at the UCLA-Olive View-Cedars Sinai program where he had ...
(Date:6/24/2016)... ... ... Those who have experienced traumatic events may suffer from a complex set ... drug or alcohol abuse, as a coping mechanism. To avoid this pain and suffering, ... traumatic event. , Trauma sufferers tend to feel a range of emotions, from depression, ...
Breaking Medicine News(10 mins):
(Date:6/24/2016)... June 24, 2016  Global Blood Therapeutics, Inc. (GBT) ... developing novel therapeutics for the treatment of grievous ... the closing of its previously announced underwritten public ... the public offering price of $18.75 per share. ... offered by GBT. GBT estimates net proceeds from ...
(Date:6/24/2016)... 24, 2016 Research and ... "Structural Electronics 2015-2025: Applications, Technologies, Forecasts" report ... In-Mold Electronics, Smart Skin, Structural Health Monitoring, ... Structural electronics involves electronic and/or electrical components ... replacing dumb structures such as vehicle bodies or ...
(Date:6/24/2016)... and SAN CLEMENTE, Calif. , June 24, 2016 ... mobile pulmonary function testing company, is now able to perform sophisticated ... by ndd Medical Technologies , Inc. Patients ... hospital-based labs.  Thanks to ndd,s EasyOne PRO ® , ARL patients ... get any needed testing done in the comfort of her own ...
Breaking Medicine Technology: