Smoke and mirrors: The industry's restructure changed profit and employment trends

The Tobacco Product Wholesaling industry has faced declining consumer demand, rising prices and a substantial restructure over the past five years. Domestic cigarette production ceased in 2014-15, with both Philip Morris Australia and British American Tobacco closing their Australian manufacturing facilities. Both companies have since entered the Tobacco Product Wholesaling industry, causing industry revenue to significantly spike over the two years through 2015-16. However, industry revenue has stabilised over the past three years, as rising prices and excise taxes have offset declining smoking rates and fluctuating demand from downstream retailing industries...read more.

Industry Statistics & Market Size
Revenue
$3bn
Annual Growth 14-19
28.9%
Forecast Growth 19-24
Profit
Employment
4,106
Businesses
45

Industry Threats & Opportunities

  • Declining consumer demand and rising prices have defined the industry over the past five years
  • The industry’s restructure has significantly affected industry value added, wages and employment
  • The smoking rate is forecast to decline over the next five years, limiting industry demand
  • Industry Report - Industry Analysis Chapter

    The structure of the Tobacco Product Wholesaling industry has significantly changed over the past five years, due to Philip Morris Australia and British American Tobacco ceasing their local cigarette and tobacco product manufacturing operations. Previously, both companies engaged in wholesale bypass to sell their products directly to retailers, which meant that their operations were not included in the industry. However, as these companies both ceased their domestic manufacturing operations in 2014-15, they have since entered the industry as major players. Prior to this, Imperial Tobacco Australia, which operated alongside several small-scale wholesalers, dominated the industry...purchase to read more.

    Additional Insights for the Tobacco Product Wholesaling Industry

    IBISWorld has determined the most important Key Success Factors for the Tobacco Product Wholesaling are:

  • Ability to provide goods and services in diverse locations
  • Ability to control stock on hand
  • Access to niche markets
  • IBISWorld analysts also discuss how external factors such as Excise on tobacco products and Demand from supermarkets and grocery stores in the Tobacco Product Wholesaling industry impact industry performance..

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    What's in this report

    What is the Tobacco Product Wholesaling Industry?

    Industry operators wholesale cigarettes, cigars and other tobacco products. Leaf tobacco is excluded from the industry.

    Industry Products
  • Value cigarettes
  • Mainstream cigarettes
  • Premium cigarettes
  • Roll-your-own cigarettes
  • Other tobacco products
  • Industry Activities
  • Cigarette wholesaling
  • Cigar wholesaling
  • Roll-your-own cigarette wholesaling
  • Loose tobacco wholesaling
  • Other tobacco product wholesaling
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Excise on tobacco products
  • Demand from supermarkets and grocery stores
  • World price of tobacco
  • Smoking rate

  • Current Performance
  • Industry restructure
  • Other major trends
  • Government regulation
  • Chart: Revenue Growth

  • Industry Outlook
  • Smoking trends
  • Regulation and taxes
  • Table: Tobacco Product Wholesaling Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Tobacco Product Wholesaling Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Tobacconists and Specialised Grocery Retailing
  • Supermarkets and Grocery Stores
  • Convenience Stores

  • Key Selling Industries
    Products & Services
  • Value cigarettes
  • Mainstream cigarettes
  • Premium cigarettes
  • Roll-your-own cigarettes
  • Other tobacco products
  • Chart: Tobacco Product Wholesaling Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Supermarkets and grocery stores
  • Tobacconists
  • Convenience stores
  • Other outlets
  • Fuel retailers
  • Chart: Major Market Segmentation for the Tobacco Product Wholesaling 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 Tobacco Product Wholesaling

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Tobacco Product Wholesaling Industry

  • Industry Globalization
    British American Tobacco (Australasia Holdings) Pty Limited, Philip Morris (Australia) Limited, Imperial Tobacco Australia Limited,
  • Table: British American Tobacco (Australasia Holdings) Pty Limited - financial performance
  • Table: Philip Morris (Australia) Limited - financial performance
  • Table: Imperial Tobacco Australia Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Tobacco Product Wholesaling 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 Tobacco Product Wholesaling Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Cigarillos
  • Short, narrow cigars that are wrapped in tobacco leaves or brown tobacco-based paper.
  • Ecigarette
  • A device designed to simulate the act of smoking tobacco cigarettes without burning tobacco. Ecigarettes deliver nicotine through an aerosol vapour.
  • Rollies
  • A slang term for self-rolled or roll-your-own cigarettes.
  • Snuff
  • A smokeless tobacco product made from ground tobacco leaves.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Tobacco Product Wholesaling market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Tobacco Product Wholesaling:
    • 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 Tobacco Product Wholesaling 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 Tobacco Product Wholesaling, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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