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 Analysis Chapter
The Cigarette and Tobacco Product Manufacturing industry has not yet gone up in smoke, despite facing a barrage of anti-smoking sentiment over the past five years. Industry operators have faced rising health concerns, a declining smoking rate, higher excise taxes and tougher regulations over this period.
Revenue and profitability
Industry revenue is estimated to decline at an annualised 0.8% over the five years through 2014-15 to reach $1.8 billion. Although revenue has declined slightly in real terms over the past five years, both tobacco product manufacturers in the industry have reported slight growth in nominal terms. Large increases in excise taxes, particularly in 2010-11, have restricted domestic demand for cigarettes and tobacco products... purchase to read more