Losing puff: Tightening regulations on smoking have caused industry revenue to decline

The Tobacconists and Specialised Grocery Retailing industry is highly diverse. Industry operators retail a variety of specialised products including tobacco, chocolate and confectionery, and non-alcoholic beverages. Several consumer, economic and regulatory factors have influenced the industry over the past five years. While some of these factors have been beneficial to certain retailers, they have negatively affected others. For example, rising health consciousness over the past five years weakened demand for products such as chocolate and confectionery, but provided a boost to operators that retail health food products. Consequently, industry performance has been mixed, with declines in some product segments promoting growth in other segments...read more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23
Market Share of Companies

Industry Threats & Opportunities

  • Increasing regulatory pressures relating to tobacco have limited industry growth
  • Mounting competition from supermarkets has hindered the industry's performance
  • Competitive pressure from supermarkets and other grocery stores is anticipated to remain strong
  • Industry Report - Starting a New Business Chapter

    The barriers to entry into the industry are low and have remained relatively steady over the past five years. Capital investment for industry operators is generally low, although prospective operators still require capital to enter the industry. Initial capital required can include the cost of establishing a new store including the cost of fit-outs and stock.While overall industry concentration is low, it is higher in certain product segments, such as tobacco products. Consequently, the barriers to entry are higher for these products than in more fragmented product segments, such as smallgoods. In addition, it is important to note that the industry is subject to considerable price- and product-based competition from external players, such as supermarkets and other grocery stores. Gro...purchase to read more.

    Additional Insights for the Tobacconists and Specialised Grocery Retailing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Tobacconists and Specialised Grocery Retailing Industry are

  • Ability to franchise operations
  • Ability to control stock on hand
  • Having a clear market position
  • IBISWorld analysts also discuss how external factors such as Demand from supermarkets and grocery stores and Smoking rate in the Tobacconists and Specialised Grocery Retailing industry impact industry performance..

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    What's in this report

    What is the Tobacconists and Specialised Grocery Retailing Industry?

    Industry operators are primarily engaged in retailing tobacco and a range of specialised grocery products including confectionery, non-alcoholic drinks and smallgoods. Products are sourced from wholesalers or direct from manufacturers and are sold via retail outlets to the general public. The industry excludes supermarkets, grocery stores and takeaway food operators.

    Industry Products
  • Tobacco products
  • Chocolate and confectionery
  • Smallgoods
  • Non-alcoholic beverages
  • Other specialised grocery products
  • Industry Activities
  • Confectionery retailing
  • Non-alcoholic drinks retailing
  • Smallgoods retailing
  • Specialised food retailing
  • Tobacco product retailing
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from supermarkets and grocery stores
  • Smoking rate
  • Consumer sentiment index
  • Real household disposable income

  • Current Performance
  • Chart: Revenue Growth

  • Industry Outlook
  • Table: Tobacconists and Specialised Grocery Retailing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Tobacconists and Specialised Grocery Retailing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • General Line Grocery Wholesaling
  • Meat, Poultry and Smallgoods Wholesaling
  • Soft Drink and Pre-Packaged Food Wholesaling
  • Tobacco Product Wholesaling

  • Products & Services
  • Tobacco products
  • Non-alcoholic beverages
  • Chocolate and confectionery
  • Other specialised grocery products
  • Smallgoods
  • Chart: Tobacconists and Specialised Grocery Retailing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Consumers aged 35 to 54
  • Consumers aged 15 to 34
  • Consumers aged 55 and over
  • Chart: Major Market Segmentation for the Tobacconists and Specialised Grocery Retailing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Tobacconists and Specialised Grocery Retailing

  • Basis of Competition
  • Internal
  • External

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Tobacconists and Specialised Grocery Retailing Industry

  • Industry Globalization
    TSG Franchise Management Pty Ltd,
  • Table: TSG Franchise Management Pty Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Tobacconists and Specialised Grocery Retailing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Tobacconists and Specialised Grocery Retailing Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • Manufacturer and retailer of chocolate products.
  • Hookah
  • A traditional pipe used to smoke flavoured tobacco. The device is also referred to as a water pipe, shisha or narghile.
  • Roll-Your-Owns
  • Self-rolled cigarettes that are composed of loose tobacco and rolling papers. These cigarettes are popular as consumers are able to control the strength of their cigarettes.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Tobacconists and Specialised Grocery Retailing market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
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    • Inform your decisions for marketing, strategy and planning
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    This report on Tobacconists and Specialised Grocery Retailing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Tobacconists and Specialised Grocery Retailing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Tobacconists and Specialised Grocery Retailing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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