Research and Markets: Examine the Tobacco Industry in China as the Government Continues to Regulate the Industry

DUBLIN--(BUSINESS WIRE)--Research and Markets (http://www.researchandmarkets.com/research/c01919/tobacco_in_china) has announced the addition of the "Tobacco in China" report to their offering.

China's tobacco industry witnessed growth in overall volume sales in 2009, but at a slower rate compared to that of the previous year. The slowdown can be mainly attributed to the governments effort on smoking control.

The Tobacco in China report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data 2005-2009, allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market - be the new legislative, distribution or pricing issues. Forecasts to 2014 illustrate how the market is set to change.

Why buy this report?

Get a detailed picture of the Tobacco industry;
Pinpoint growth sectors and identify factors driving change;
Understand the competitive environment, the markets major players and leading brands;
Use five-year forecasts to assess how the market is predicted to develop.

Executive Summary:

Mid tar gains as premium-priced cigarettes shrink

The fastest-growing sectors of the market during 2005 were mid tar cigarettes, thanks to deepened penetration and considerable efforts in new product development, promoted by the government to combat rising health concerns regarding smoking. With the mid tar and low tar sectors accounting for an extremely tiny share of the market, there is much potential for strong sales growth during the forecast period.

During 2005, premium and mid-priced products performed well across the regions in line with the rising trends of higher consumption power, coupled with high levels of activity in the premium segment. However, there was also strong growth in certain traditional economy areas, mostly famous high tar brands, triggered by vigorous launches of brand-extension new products. Despite the rising taxation rate, most large cigarettes producers made significant gains in the review period.

China becomes the 89th country to ratify the FCTC

China became the 89th country to ratify the Framework Convention on Tobacco Control (FCTC) in 2005, the international tobacco treaty negotiated under the auspices of the World Health Organisation (WHO).

Implementation of the treaty was carried out swiftly, including the setting up a coordination institution involving several critical state ministries. In five years time, a comprehensive ban on tobacco advertising, marketing and promotion, replacement of warnings on cigarette packs, increased taxation on tobacco, and smoke-free public spaces and workplaces are expected to reduce the illnesses caused by tobacco and curb healthcare costs relating to tobacco considerably.

Industry reform sees more action than retail

Continuous merger and acquisition activities, breakthroughs in international cooperation and revised policies on tariffs, supply coordination and product profile made 2005 a breathtaking reform year for tobacco industry.

The ongoing reform involves the formation of 10 giant manufacturers, cutting down of the tariffs, establishing production or research and development alliances with multinationals, creating "supply to order" model in regional retail market, and decreasing the average tar level to nearly 12mg in 2005.

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