Industry Analysis & Industry Trends
While tobacco product manufacturing in Australia is restricted to two companies, competition is fierce. Heavy government regulation makes it very difficult for players to thrive, leading the companies to become battle hardened in their tactics. Demand for cigarettes has declined over the past five years as increasing health concerns, anti-smoking campaigns, increasing regulations and higher excise taxes discourage smoking. Recent regulatory restrictions include state bans on indoor smoking, state retail display bans and the introduction of plain packaging in December 2012. Plain packaging is expected to have a significant effect on the industry, leading revenue to decline by 4.4% in 2013-14 to reach $1.8 billion... purchase to read more
Industry Report - Industry Key Buyers Chapter
The industry has a very high level of concentration, as there are only two manufacturers that operate in Australia. There are more distributors that import products (including major tobacco company Imperial Tobacco), but these are included in the Tobacco Product Wholesaling industry. The companies operate globally and have manufacturing facilities in Australia. In global terms, there has been a high degree of merger and acquisition activities. However, the number of companies operating in Australia has remained at two over the past five years.
There has been considerable change to the form of the participants over the past 15 years. Rothmans and Wills merged to form British American Tobacco in 1999, and this increased industry concentration... purchase to read more