Industry Analysis & Industry Trends
Although tobacco product manufacturing in Australia is restricted to two companies, heavy government regulation results in extremely fierce competition. Demand for cigarettes has declined over the past five years due to rising health concerns, frequent anti-smoking campaigns, increasing regulation and higher excise taxes. As a result, industry revenue is estimated to fall at a compound annual 0.8% over the five years through 2014-15. Revenue is forecast to drop by 3.8% in 2014-15 to reach $1.8 billion. Smoking tobacco has been proven to cause a range of health issues such as lung cancer, throat cancer and respiratory diseases. Industry products therefore cannot be advertised and must be sold in plain packaging that includes health warnings... purchase to read more
Industry Report - Industry Products Chapter
Cigarettes account for the largest share of tobacco product sales. Cigarettes can be segmented into standard, premium and self-rolled varieties. Other products in the industry include cigars and other smoking tobacco. Industry products are segmented based on the proportion of revenue that each segment generates.
Standard cigarettes are the largest product segment in the industry. Standard cigarettes are generally cheaper than other types of smoking tobacco, which results in extremely high consumption. Standard cigarette brands include Peter Jackson, Winfield, Longbeach and Horizon. This segment has declined as a proportion of revenue over the past five years due to the rising popularity of roll-your-own cigarettes... purchase to read more