Industry Analysis & Industry Trends
Demand for cigarettes has declined over the five years through 2011-12 due to increasing health concerns, anti-smoking campaigns, increasing regulations and higher excise taxes. However, price rises have offset this decline to some extent. As a result, industry revenue is expected to grow at an annualised 1.8% over the five years through 2011-12 to total $1.53 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 continuously over the past five years... purchase to read more
Industry Report - Industry Investment Chapter
The industry has a high level of capital intensity compared to other manufacturing industries. Depreciation has been used as a proxy for the level of capital. Increasing mechanisation and automation has meant that the industry has become increasingly capital intensive, thereby reducing dependence on labour. This has been a natural consequence of an industry whose volumes have been falling steadily for the past 20 to 30 years since they must restructure operations to reduce dependence on labour and achieve greater scale economies. Otherwise, the production would have to move to large-scale efficient plants offshore... purchase to read more