The tobacco market - Italy

Since 2020, the global tobacco market has continued to be substantial with Italy having a distinct presence. Italy's tobacco industry reported a significant expenditure on tobacco products, amounting to 1.34 billion euros in 2020 according to Eurostat. The Italian tobacco market is facing transitions with the advent of alternative smoking products such as e-cigarettes. Despite the emergence of these new products, traditional tobacco consumption persists with 11.6 million smokers in Italy as of 2020. Men between the ages of 45-54 have been identified as the prevalent demographic amongst Italian smokers. However, there's a growing trend in e-cigarette use but it has not substantially deterred traditional smoking habits, with the majority being dual users. Globally, the market has witnessed leading tobacco companies recording turnovers in the billions in 2020, indicating the industry's substantial profitability. Regulation has been stringent with European Directive 40/2014/EU influencing national legislations, such as Italy's, to mitigate smoking rates and protect minors and non-smokers. The tobacco distribution network within Italy remains robust, albeit with a declining number of companies involved in production, reflecting a concentrated industry with a reduced cultivable area from 36 thousand hectares in 2000 to 13.4 thousand hectares in 2020.

Analyzing Tobacco Consumption Trends in Italy

In Italy has a population of between 10 and 15 million smokers, accounting for approximately 20% of the Italian population. The demographic most associated with smoking falls between the ages of 45 and 54, with a higher prevalence among men compared to women. Notably, the northern regions of Italy have a higher concentration of smokers compared to other areas. The introduction of electronic cigarettes has also shifted consumption patterns. Although e-cigarettes have gained traction, with nearly 50% of users having adopted the device for less than a year, the majority of these users also consume traditional cigarettes. Interestingly, the presence of e-cigarettes has not significantly impacted the rates of cessation, as over 80% of Italian e-cigarette users continue to smoke traditional tobacco alongside their electronic counterparts. When it comes to spending on tobacco, Italians have shelled out between 1.2 and 1.5 billion euros, with Lombardy and Basilicata being regions where expenditure is notably high on a monthly basis. There has been a noticeable increase in spending since 2019 due in part to increased taxation. While domestic tobacco production has seen fluctuations over the past decade, 2019 marked a record-high turnover of just under 1.8 billion euros. Nevertheless, tobacco cultivation areas have drastically decreased from around 36,000 hectares in 2000 to between 10,000 and 15,000 hectares in 2020, reflecting changes in EU and Italian subsidies and a broader push to reduce smoking rates. Regarding the products dominating the market, cigarettes, snuff, shreds, cigars, and inhalation products rate as the most sought-after, with cigarettes historically being the best seller. However, there has been a noticeable shift towards cut tobacco and smokeless inhalation products, showing an upward trajectory in sales. At the same time, the market has been shaped significantly by stringent tobacco regulations grounded in European Directive 40/2014/EU, aimed at reducing the appeal of tobacco products, limiting advertising, and protecting minors and non-smoking citizens from the effects of secondhand smoke. Concerning illicit trade, Italy displays relatively low levels of illegal cigarette consumption, with less than 5% being consumed illicitly. The bulk of this illicit tobacco originates from neighboring Slovenia, particularly affecting regions in close geographical proximity such as Trieste and Udine.

Key Players in the Tobacco Industry: Giants and New Entrants

The tobacco industry is famously known for being dominated by a few multinational giants that control a significant share of the market. These leading companies are renowned for their extensive portfolios of tobacco and related products, massive distribution networks, and influential presence in both the global and Italian markets.

Philip Morris International (PMI) stands out as one of the predominant forces in the tobacco scene. With popular brands under its belt, PMI has a substantial influence on market dynamics, consumer preferences, and industry trends. The company has made notable investments in Italy, channeling millions into the local economy and reinforcing its commitment to supporting domestic tobacco agriculture through various agreements with governmental bodies.

British American Tobacco (BAT) is another critical player, boasting a diverse product range that caters to different segments of the smoking populace. BAT's strategic investments in Italy demonstrate its strong position in the market and its capacity to adapt to evolving consumer patterns.

Imperial Brands commands a significant presence as well, contributing to the intensity of competition within the industry. Its portfolio is designed to meet the various demands of smokers, and the company's operational strategies reflect a keen understanding of market needs and regulatory landscapes.

Japan Tobacco (JT) rounds up the list of these industry giants, securing its standing with a combination of strategic marketing and well-established brand recognition. Although smaller in comparison to its counterparts, JT remains an important entity within the tobacco sector. Entering this competitive landscape is a bold move, as portrayed by

Kumulus Vape, an emerging player focused on electronic cigarettes. This new entrant highlights the evolving dynamics of the tobacco market, where traditional products are increasingly being complemented—or contested—by innovative smoking alternatives like vaping devices.

Each of these companies contributes to shaping the fabric of the tobacco market through their operations, marketing strategies, and responses to regulatory changes. The presence of both established giants and new market entrants ensures a vibrant and continuously evolving industry.

Informazioni

• Pagine : 30 pags
• Formato : Versione PDF e digitale
• Ultimo aggiornamento : 07/05/2022

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• Fumatori per gruppo di età
• Numero di sigarette fumate al giorno per gruppo di età
• Distribuzione dei fumatori per sesso
• Risposte alla domanda: "Da quanto tempo usi le sigarette elettroniche?
• Utilizzatori di sigarette elettroniche
• Produzione mondiale di tabacco
• Evoluzione della spesa annua per il tabacco
• Fatturato dell'industria del tabacco
• Valore delle esportazioni del tabacco e dei succedanei del tabacco lavorati
• Destinazione delle esportazioni di tabacco
• Valore delle importazioni del tabacco e dei succedanei del tabacco lavorati
• Provenienza delle importazioni di tabacco
• Vendite dei prodotti da tabacco
• Vendite sigarette
• Vendite altri prodotti contenenti tabacco
• Aziende leader settore tabacco
• Numero di aziende produttrici di tabacco
• Superficie nazionale coltivabile di tabacco
• Ripartizione per regione delle aziende produttrici di tabacco
• Quota dei giovanissimi che dichiarano di aver fumato sigarette almeno un giorno negli ultimi 30 giorni
• Quota dei giovani che ha già abitudini di fumo
• Indice dei prezzi al consumo prodotti con tabacco
• Provenienza dei pacchetti illeciti di sigarette
• Comuni con la consumazione più alta di sigarette illecite