Tobacco in Austria
Report Summary Good performance of tobacco market in 2010 The overall tobacco market in Austria registered a good performance over the review period. In spite of the stricter tobacco legislation imposed in 2009 and then implemented in 2010, the consumption of cigarettes did not decline and Austrian consumers did not turn away from smoking completely. Furthermore, the emergence of economy brands also contributed to the stable number of smokers in 2010. These positive developments contributed to an overall good value and volume growth of the entire tobacco market in 2010. Partial smoking ban and shift to economy brands The restriction on smoking in foodservice outlets introduced in 2009 were completely implemented in 2010, however, this has had little effect on the number of smokers in Austria as well as on the sales of tobacco products in general. Since there are now foodservice outlets with partial and total smoking bans and since the majority of outlets have a partial smoking ban, Austrians did not consume fewer cigarettes but simply shifted to foodservice outlets where smoking is allowed. Another observable trend in 2010 was the trend towards economy cigarette brands as well as the consumer shift from cigarettes to RYO tobacco. In order to cut down on spending on tobacco, Austrians are increasingly turning to mass market brands and to cheaper alternatives. Multinationals lead sales The leading manufacturers Austria Tabak, Philip Morris and Imperial Tobacco were able to obtain the majority of market share within the tobacco category offering their well-known global flagship brands as well as cheaper economy brands that are increasingly gaining popularity. All three manufacturers employed the strategy of offering a wide range of products across all price segments thus meeting demands from a wider consumer base. Specialist tobacconists lead in distribution In 2010, the retail distribution of Austria Tobacco market remained under the control of the Monopoly Administrator, which has legislation in place that protects the interests of specialist tobacco outlets. As a result, tobacco specialists were again the leading distributors in all tobacco categories. The other retailers permitted to sell tobacco products in Austria are newsagents-tobacconists/kiosks, foodservice outlets, vending and forecourts. More mainstream retailers, such as supermarkets/hypermarkets and discounters, are not permitted to sell tobacco products under Austrian legislation. Fair future development Over the forecast period, the overall tobacco market in Austria is expected to register a good performance although at a slower growth rate than that seen over the review period. The slower
growth rate in the future will come as a consequence of higher prices of cigarettes and higher taxation on tobacco, which was imposed at the beginning of 2011. Due to this, consumers will either only opt for economy brands or switch completely to other categories. The drop in value growth within cigarettes might slow down the growth of the entire market in the future. Browse to view similar reports on: Tobacco in Slovakia Tobacco in Slovenia Tobacco in Ukraine Tobacco in Ireland TABLE OF CONTENTS Tobacco in Austria - Industry Overview EXECUTIVE SUMMARY Good performance of tobacco market in 2010 Partial smoking ban and shift to economy brands Multinationals lead sales Specialist tobacconists lead in distribution Fair future development OPERATING ENVIRONMENT Legislative overview/FCTC ratification Summary 1 Legislation Summary at a Glance Country-specific legislation: Minimum legal smoking age Smoking prevalence Table 1 Smoking Prevalence in Adult Population 2005-2010 Table 2 Number of Smokers by Gender 2005-2010 Tar levels Health warnings Advertising and Sponsorship Point-of-sale display bans Smoking in public places Low Ignition Propensity (LIP) regulation Electronic cigarettes Litigation Death by cause Table 3 Death by Cause 2005-2010 TAXATION AND PRICING Duty paid packet marks Taxation rates
Table 4 Taxation and Duty Levies 2005-2010 Average cigarette pack price breakdown Table 5 Average Cigarette Pack Price Breakdown: Brand Examples 2010 PRODUCTION/IMPORTS/EXPORTS Table 6 Production/Imports/Exports 2005-2010 Table 7 Trade Statistics – Tobacco Leaf 2006-2010 Illicit trade in cigarettes MARKET INDICATORS Table 8 Illicit Trade Estimate of Cigarettes by Volume 2005-2010 MARKET DATA Table 9 Sales of Tobacco by Category: Volume 2005-2010 Table 10 Sales of Tobacco by Category: Value 2005-2010 Table 11 Sales of Tobacco by Category: % Volume Growth 2005-2010 Table 12 Sales of Tobacco by Category: % Value Growth 2005-2010 Table 13 Forecast Sales of Tobacco by Category: Volume 2010-2015 Table 14 Forecast Sales of Tobacco by Category: Value 2010-2015 Table 15 Forecast Sales of Tobacco by Category: % Volume Growth 2010-2015 Table 16 Forecast Sales of Tobacco by Category: % Value Growth 2010-2015 DEFINITIONS Summary 2 Research Sources Tobacco in Austria - Company Profiles Austria Tabak GmbH in Tobacco (Austria) STRATEGIC DIRECTION KEY FACTS COMPANY BACKGROUND PRODUCTION Summary 5 Austria Tabak GmbH & Co KG: Production Statistics 2010 COMPETITIVE POSITIONING Summary 6 Austria Tabak GmbH & Co KG: Competitive Position 2010 Imperial Tobacco Austria Marketing Service GmbH in Tobacco (Austria) STRATEGIC DIRECTION KEY FACTS COMPANY BACKGROUND PRODUCTION COMPETITIVE POSITIONING
Summary 9 Imperial Tobacco Austria Marketing Service GmbH: Competitive Position 2010 Philip Morris GmbH in Tobacco (Austria) STRATEGIC DIRECTION KEY FACTS COMPANY BACKGROUND PRODUCTION COMPETITIVE POSITIONING Summary 12 Philip Morris GmbH: Competitive Position 2010 Cigarettes in Austria - Category Analysis HEADLINES TRENDS The cigarettes market registered a very good performance in Austria in 2010. Even though the government’s imposition of stricter regulations is ongoing, there is still a significant number of Austrians who do not wish to give up smoking. This is closely related to the Austrian tradition of great café culture. The majority of Austrians still prefer going for a coffee with friends and chatting while enjoying their favourite coffee and a cigarette. The majority of Austrians are happy with the current state of affairs, which offers physically divided spaces for smokers and non-smokers. This is especially observable in the state capital, Vienna. Viennese café culture is still cherished and, along with it, the tradition of smoking. Even though many Austrians are fond of healthier lifestyles and smoke-free environments, there are significant numbers of people who are not willing to give up smoking completely but rather tend to switch to lower tar cigarettes. As a result, the cigarettes market registered a good performance in 2010 maintaining positive value as well volume growth. COMPETITIVE LANDSCAPE Until 1995, when Austria joined the EU, the cigarette industry was fully controlled by the state owned Monopoly Administrator, which controlled production, importation and exportation. At present, the 100% state owned Monopolverwaltung GesmbH (Monopoly Administrator), which was established in 1995, holds total control over the retail distribution of cigarettes in Austria. NEW PRODUCT DEVELOPMENTS Summary 13 Cigarettes - New Product Launches DISTRIBUTION PROSPECTS The cigarettes market is expected to show a good performance over the forecast period. The main trend will be towards cigarettes with lower tar content. Just as consumers have gradually started to switch from high tar cigarettes to mid tar cigarettes in the past, the same switch from mid tar cigarettes to low and ultra cigarettes will be ongoing in the future. Even though the price of cigarettes
is expected to increase significantly in 2011, as well as the taxation on tobacco, consumers are not expected to buy fewer cigarettes but to switch to cheaper brands instead. Another trend that will be seen in the future within cigarettes in Austria will be the trend towards new product launches specially produced to target female smokers. As there is a growing number of females in Austria, producers are expected to follow this trend and place greater emphasis on this consumer group. CATEGORY BACKGROUND Cigarettes: Price Bands Summary 14 Cigarette Price Band Definitions Cigarettes: Menthol/standard Cigarettes: Filter/non-filter Cigarettes: Carbon/standard filter Cigarettes: Filter length Cigarettes: Slims/superslims vs regular Cigarettes: Pack size Cigarettes: Pack type CATEGORY DATA Table 17 Sales of Cigarettes by Tar Level: Volume 2005-2010 Table 18 Sales of Cigarettes by Tar Level: Value 2005-2010 Table 19 Sales of Cigarettes by Tar Level: % Volume Growth 2005-2010 Table 20 Sales of Cigarettes by Tar Level: % Value Growth 2005-2010 Table 21 Sales of Cigarettes by Price Band: % Volume Breakdown 2005-2010 Table 22 Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2005-2010 Table 23 Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2005-2010 Table 24 Sales of Cigarettes by Filter Vs Non-filter: % Volume Breakdown 2005-2010 Table 25 Sales of Filter Cigarettes by Carbon Vs Non-carbon: % Volume Breakdown 2005-2010 Table 26 Sales of Cigarettes by Length: % Volume Breakdown 2005-2010 Table 27 Sales of Cigarettes by Regular/Slim: % Volume Breakdown 2006-2010 Table 28 Sales of Cigarettes by Pack Size: % Volume Breakdown 2005-2010 Table 29 Sales of Cigarettes by Pack Type: % Volume Breakdown 2005-2010 Table 30 Cigarettes Company Shares 2006-2010 Table 31 Cigarettes Brand Shares 2007-2010 Table 32 Sales of Cigarettes by Distribution Format: % Analysis 2005-2010 Table 33 Cigarettes: Production, Imports and Exports: Total Volume 2005-2010 Table 34 Forecast Sales of Cigarettes by Tar Level: Volume 2010-2015 Table 35 Forecast Sales of Cigarettes by Tar Level: Value 2010-2015 Table 36 Forecast Sales of Cigarettes by Tar Level: % Volume Growth 2010-2015 Table 37 Forecast Sales of Cigarettes by Tar Level: % Value Growth 2010-2015 Table 38 Forecast Sales of Cigarettes by Price Band: % Volume Breakdown 2010-2015 Table 39 Forecast Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2010-2015 Table 40 Forecast Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2010-2015 Table 41 Forecast Sales of Cigarettes by Filter Vs Non-filter: % Volume Breakdown 2010-2015 Table 42 Forecast Sales of Filter Cigarettes by Carbon Vs Non-carbon: % Volume Breakdown 2010-2015
Table 43 Forecast Sales of Cigarettes by Length: % Volume Breakdown 2010-2015 Table 44 Forecast Sales of Cigarettes by Regular/Slim: % Volume Breakdown 2010-2015 Table 45 Forecast Sales of Cigarettes by Pack Size: % Volume Breakdown 2010-2015 Table 46 Forecast Sales of Cigarettes by Pack Type: % Volume Breakdown 2010-2015 Cigars in Austria - Category Analysis HEADLINES TRENDS Austria does not have a long tradition of smoking cigars and cigarillos. The habit of consuming these tobacco products is relatively new. At present, Austria has a significant but also limited cigar consumer group that mainly comprises of cigar and cigarillo aficionados who are loyal to specific brands. Prior to Austria’s joining the EU in 1995, the total control over tobacco products was held by the Monopoly Administrator. After this, legislation relating to the production, wholesale distribution, importation and exportation of tobacco products was loosened and private companies were able to enter the market. After 2000, importers and wholesalers flooded the market with new and interesting products as well as high quality items. This created a boom for cigars and cigarillos, which remains ongoing, while the products that were available prior to 1998 have disappeared almost entirely from retail. HAND-MADE VERSUS MACHINE MANUFACTURED SPLITS Table 47 Sales of Cigars by Handmade vs Machine-manufactured 2006-2010 COMPETITIVE LANDSCAPE The leading manufacturer within cigars excluding cigarillos in 2010 was Corporación Habanos holding a 49% value share. This makes the company the undisputed leader within the market. Since the acquisition of Altadis in 2008, Imperial Tobacco Group now owns a 50% share of Corporación Habanos. However, Habanos, which has a monopoly on cigar production in Cuba, retained control over the marketing, selling and distribution of its products. The runner-up producer in 2010 was Davidoff & Cie, Genève holding a 4% share of value sales, followed by Austria Tabak with just under 4%.. NEW PRODUCT DEVELOPMENTS Summary 15 Cigars and Cigarillos - New Product Launches DISTRIBUTION PROSPECTS Over the forecast period, the cigars category is expected to be dominated by two major trends. On the one hand, consumers are expected to keep shifting to shorter cigar formats such as small cigars and cigarillos. This will mainly be the domain of consumers with average disposable income since they are expected to shift to more favourable machine made cigar brands, which are mainly found in small cigars and cigarillos. The category of large cigars will maintain its premium domain attracting wealthier consumers who prefer Cuban cigars, which are hand-made and thus more expensive.
CATEGORY DATA Table 48 Sales of Cigars by Category: Volume 2005-2010 Table 49 Sales of Cigars by Category: Value 2005-2010 Table 50 Sales of Cigars by Category: % Volume Growth 2005-2010 Table 51 Sales of Cigars by Category: % Value Growth 2005-2010 Table 52 Sales of Cigars by Handmade vs Machine Manufactured: % Volume Breakdown 2005-2010 Table 53 Company Shares of Cigars Excluding Cigarillos 2006-2010 Table 54 Brand Shares of Cigars Excluding Cigarillos 2007-2010 Table 55 Company Shares of Cigarillos 2006-2010 Table 56 Brand Shares of Cigarillos 2007-2010 Table 57 Sales of Cigars by Distribution Format: % Analysis 2005-2010 Table 58 Forecast Sales of Cigars by Category: Volume 2010-2015 Table 59 Forecast Sales of Cigars by Category: Value 2010-2015 Table 60 Forecast Sales of Cigars by Category: % Volume Growth 2010-2015 Table 61 Forecast Sales of Cigars by Category: % Value Growth 2010-2015 Smoking Tobacco in Austria - Category Analysis HEADLINES TRENDS Austria does not have long tradition of RYO smoking. This is a relatively new trend in Austria, which is perceived as an old school style of smoking tobacco. The tradition of pipe smoking has a longer tradition in Austria. It was popular in Austria when the Monopoly Administrator controlled the tobacco category prior to 1995. Today, pipe smoking is widely regarded as old fashioned and its popularity has dropped significantly. Nowadays, pipe smoking is mainly reserved for various cigar and tobacco aficionado clubs and it is chiefly consumed by senior citizens. The role and effect of cannabis/marijuana DISTRIBUTION COMPETITIVE LANDSCAPE The leading producer within smoking tobacco in 2010 was Austria Tabak holding a 35% volume share mainly generated through the good performance of its Smart, Altesse, Old Holborn and Landtabak brands. The runner-up manufacturer was Imperial Tobacco Austria Marketing Service with 23% of the value shares in 2010. The company managed to establish itself as the runner-up producer due to the good performance of its brands Drum, Golden Virginia, Gauloises, John Player, West and Amphora. The third-ranked producer in 2010 was British American Tobacco (Austria) holding a 9% share of value sales thanks to its Pall Mall, Javaanse Jongens and Derby brands. NEW PRODUCT DEVELOPMENTS Summary 16 Smoking tobacco - New Product Launches PROSPECTS
Over the forecast period, smoking tobacco is expected to sustain a good performance. The trend towards RYO tobacco is expected to be prolonged and increasing numbers of consumers are expected to switch to this tobacco product in order to be cut down their spending on tobacco. In addition, with expected price increases of cigarettes occurring in 2011, the trend towards shifting to RYO tobacco is expected to be even more important in the future. Even though the producers are expected to continue making efforts to revive the market of pipe tobacco by launching new product launches from this category, the rather negative and old-fashioned image of pipe tobacco will also prevail in the future. CATEGORY DATA Table 62 Sales of Smoking Tobacco by Category: Volume 2005-2010 Table 63 Sales of Smoking Tobacco by Category: Value 2005-2010 Table 64 Sales of Smoking Tobacco by Category: % Volume Growth 2005-2010 Table 65 Sales of Smoking Tobacco by Category: % Value Growth 2005-2010 Table 66 Company Shares of RYO Tobacco 2006-2010 Table 67 Brand Shares of RYO Tobacco 2007-2010 Table 68 Company Shares of Pipe Tobacco 2006-2010 Table 69 Brand Shares of Pipe Tobacco 2007-2010 Table 70 Sales of Smoking Tobacco by Distribution Format: % Analysis 2005-2010 Table 71 Forecast Sales of Smoking Tobacco by Category: Volume 2010-2015 Table 72 Forecast Sales of Smoking Tobacco by Category: Value 2010-2015 Table 73 Forecast Sales of Smoking Tobacco by Category: % Volume Growth 2010-2015 Table 74 Forecast Sales of Smoking Tobacco by Category: % Value Growth 2010-2015 About Us: ReportsnReports is an online library of over 100,000+ market research reports and in-depth market research studies & analysis of over 5000 micro markets. We provide 24/7 online and offline support to our customers. Get in touch with us for your needs of market research reports. Follow us on Twitter: http://twitter.com/marketsreports Contact: Mr.Priyank 7557 Rambler road, Suite727,Dallas,TX75231 Tel: + 1 888 391 5441 E-mail: sales@reportsandreports.com Visit our Market Research Blog