MARKET OVERVIEW
1.1 Definition and scope of study
Situated at the crossroads of public and private issues, the tobacco market is a highly specific, highly regulated and monitored market, which nonetheless affects all segments of the global and French population.
The scope of this study includes the production, distribution and sale of tobacco and its by-products, such as cigarettes, cigars, cigarillos, rolling tobacco, chewing tobacco and snuff. New forms of consumption, such as electronic cigarettes, will also be discussed.
The tobacco market is in decline in France, influenced first and foremost by rising cigarette prices, which have led to a drop in cigarette sales over the past twenty years. The market is also in difficulty due to the boom in sales of medical patches and electronic cigarettes. According to Santé Publique France, there are now almost 12 million daily smokers in France.
The tobacco market is dominated by leaders such as Philip Morris International (which owns the Malboro and Philip Morris brands), Seita (which owns Fortuna, Gauloises and Gitanes), Altadis Imperial Tobacco, Japan Tobacco International and British American Tobacco. There are also some forty tobacco distributors in France, the main one being Logista France. Finally, the retail sale of tobacco products is regulated by the French customs authorities.
1.2 The global market in decline
The most recent estimates for the global tobacco market (***). [***] More than US$*** billion of this comes from the sale of conventional cigarettes, of which more than *,*** billion units are consumed each year.
Although combustible cigarettes remain the largest category, their volume has gradually declined over the years due to increased regulation ...
1.3 A downward trend in the French market
A sharp drop in market volume
The overall tobacco market (***). [***]
But in volume terms, the French tobacco market is in sharp decline, due in particular to the steady rise in cigarette prices as well as the boom in sales of medical patches and electronic cigarettes. In ****, tobacco sales were in fact ...
1.4 The rise of the electronic cigarette
"On a scale of * to **, how would you rate the dangerousness of these products?" France, ****, in % Source: ****
Often perceived as a smoking cessation tool, e-cigarettes influence the tobacco market. Vaping enjoys arelatively good image regarding its effects on health, as shown in the graph above. Respondents consider vaping to be the ...
1.5 Foreign trade
Value of tobacco and tobacco product imports France, **** - ****, in millions of dollars Source: ****
Analysis of the data provided shows a general downward trend in tobacco imports in monetary terms from **** to ****. In ****, the value of tobacco imports was $*,***.* million. This value fell slightly in ****, reaching $****.* million, a drop of *.*%. In ...
DEMAND ANALYSIS
2.1 Smoking is widespread in France but declining
Daily smoking prevalence by gender among **-** year-olds France, **** - ****, in Source: ****
The prevalence of daily smoking in France fluctuated between **** and ****. Among men, the percentage of daily smokers rose slightly from **.*% in **** to **.*% in ****, then oscillated and finally fell to **.*% in ****. Among women, prevalence rose from **.*% in **** to **.*% in ****, before ...
2.2 Smoker profiles in France
Geographical distribution
There are major regional disparities in the proportion of smokers. The regions with the highest smoking rates in France are Provence-Alpes-Côte-D'azur (***). [***]
Share of smokers by region among **-** year-olds France, ****, in % Source: ****
Age and gender
Share of smokers in the population by age and sex France, ****, in % Source: ...
2.3 The French are trying to quit smoking
More and more French smokers are trying to quit their harmful habit.
Daily smokers wishing to quit France, ****, in Source: ****
The desire to quit smoking is very strong among daily smokers: nearly * out of ** want to quit. Just under a third of them had made a quit attempt lasting at least ...
2.4 The impact of legislation on demand
Tobacco demand is highly dependent on various regulations, and in particular on taxation and other taxes: for example, theWHO estimates that a **% price increase on a pack of cigarettes reduces demand by around *% in high-income countries, and by *% to *% in low- and middle-income countries.
In France, the data provided by the ...
MARKET STRUCTURE
3.1 Simplified diagram of market structure
Source: ****
3.2 Sector concentration
Based on the net sales of the world's leading tobacco producers, Forbes magazine puts Philip Morris International at the top of this ranking, with $***.* billion in sales in ****. Next come Altria Group (***).
Ranking of top tobacco companies by total sales World, ****, Billions of dollars Source: ****
From **** to the present day, tobacco ...
3.3 Tobacconists have a monopoly on the retail trade
The entire network of tobacconists in France is managed by the French customs and excise administration, providing a framework for the tobacco distribution system.
By ****, there will be a total of **,*** tobacconists , generating sales of €**.** billion.
Number of tobacconists France, ****-**** Source: ****
There is a clear downward trend in the number ...
4.1 Cigarettes are by far the most widely consumed tobacco product
Cigarettes are the most widely consumed tobacco product in France, accounting for **% of sales volume in ****. Sales of roll-your-own tobacco have risen sharply in recent years due to the higher price of industrial cigarettes. This segment will account for **% of tobacco sales in ****.
Share of volume sales of main tobacco products ...
4.2 Tobacco manufacturers set prices
Tobacco prices are set not by the government, but by tobacco manufacturers. Here are the successive stages:[***]
Manufacturers submit a proposal for prices before tax (***) to the French customs administration; The Minister of the Budget ratifies these prices to harmonize prices across the country, depending on the type of product, and ...
4.3 Steadily rising tobacco prices
Change in the price of the best-selling pack of cigarettes and roll-your-own tobacco France, **** - ****, in € Source: ****
Analysis of the data presented shows a steady increase in the price of the best-selling pack of cigarettes and the best-selling pack of rolling tobacco between **** and ****.
For the best-selling pack of cigarettes, the ...
4.4 A growing illegal parallel market
Faced with rising tobacco prices, many consumers are turning to counterfeit products. The parallel network is an attractive alternative for many smokers, as the supply is much more affordable.
Tobacco sales by network France, **** - ****, in Source: ****
From **** to ****, the proportion of tobacco purchased outside the official network rose sharply, from ...
REGULATIONS
5.1 Loi Evin 1991, loi de modernisation de notre système de santé 2016
Loi Evin ****
Promulgated in **** by Health Minister Claude Evin, this law reinforces the **** Veil law, and aims to control tobacco and alcohol consumption in France. [***]
With regard to tobacco, it provides for :
A ban on advertising and free or promotional distribution, except in tobacco shops Price increases A ban on smoking ...
5.2 Maximum substance contents and individual tobacco imports
Maximum substance levels
European Directive ****/**/EC introduces Europe-wide limits for various harmful substances in cigarettes and tobacco:
Tar: ** mg / cigarette Nicotine: * mg / cigarette
Carbon monoxide: ** mg / cigarette
It is permitted to bring tobacco into France from a foreign country, but there are certain rules and limits to be respected. Beyond these ...
5.3 Sales, tax and rollover legislation
Sales
The decree of January **, **** prohibits the resale of tobacco products at cultural and sporting events and in health establishments. Cigarette scalpers face prison sentences
Under article *** of the French General Tax Code, the retail sale of tobacco is controlled by customs and carried out by tobacconists, who are required to ...
POSITIONING THE PLAYERS
6.1 Player segmentation
- Philip Morris International
- Imperial Brands
- Japan Tobacco
- British American Tobacco
- Altria (Philip Morris USA, Malboro)
- Logista France (Altria)
- Altadis (Imperial tobacco)
- Arnold André
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Reviews (5)
The chocolate and chocolate factory market - France
Publicado en 23/06/2022 by Helie Krotoff
OK
The market for sports nutrition supplements - France
Publicado en 31/01/2022 by Thibaut Reinhard - Biocanna Technologies SRL
We got the numbers we needed. Excellent study
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The Farm Animal Feed Market - France
Publicado en 09/01/2022 by Hugo Schott - Businesscoot
Note the recent but steady take-off of organic feed for farm animals, which is leading to a renewal of research and development in the sector
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The market for sports nutrition supplements - France
Publicado en 06/01/2022 by Amaury Wernert
The work of collection, data processing and the method to estimate the market still poorly known are very relevant. Interview with the market specialist on the impact of the Covid crisis very interesting
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The ready meal market - France
Publicado en 26/11/2020 by Lucie Piette - Cooperl
Good synthesis of the market with interesting figures
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