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The French Cigar Sector Faced a General Decrease but Cigarillos and Small Cigars Still Have Growth Potential
DUBLIN, Ireland-(Business Wire)-December 21, 2007 - Research and Markets (http://www.researchandmarkets.com/reports/c78115) has announced the addition of Euromonitor International's new report: Tobacco in France to their offering.
Euromonitors Tobacco in France report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data (2001-2006), 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 they new legislative, distribution or pricing issues. Forecasts to 2011 illustrate how the market is set to change.
Product coverage includes: cigarettes, cigars and smoking tobacco.
Data coverage: market sizes (historic and forecasts), company shares and brand shares.
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 market's major players and leading brands;
— Use five-year forecasts to assess how the market is predicted to develop.
With a network of over 600 analysts worldwide, we have the unique capability to develop reliable information resources to help drive informed strategic planning.
Executive summary
More cigarettes bought in the French territory
In 2006, cigarettes saw volume and current value increases. There were no changes in the duty rates or any price increases in France in 2006. However, the duty-paid volume rose, as Customs made some attempts at reducing cross-border importation of cigarettes; most of which were premium cigarettes. The cigarette price rise in neighbouring countries like Spain or Germany also decreased the advantages of buying cigarettes in border regions. Those two factors combined explain the increase in terms of cigarette volume sales in France.
The decline of dark tobacco
The French market has undergone a considerable shift in blend preference over the last 15 years; away from dark tobacco toward US-blend (blonde) cigarettes. The increase in blonde cigarettes is due to a shift in the market to lower tar cigarettes as smokers become more health aware.
Small cigars and cigarillos: an answer to the new smoking regulations?
The cigar sector faced a general decrease but cigarillos and small cigars still have growth potential. Indeed, they are affordable, perceived as more natural and are an alternative when the price of cigarettes rises. Besides, French smokers will have less time for smoking following the implementation of the anti-smoking law. This means that they are looking for products that are enjoyable and can be smoked quickly. The multiple launches of new products and formats in France in 2006 are a sign of the manufacturers' belief in this product category.
RYO tobacco, a growing category for the forecast period
The RYO tobacco category has growth potential that attracts several tobacco manufacturers in France. Indeed, more and more French smokers have already moved to RYO tobacco products because of the 2003-2004 price increase in order to make a saving. Even if the shift was not final or complete, a significant number of those smokers are still smoking RYO tobacco products from time to time. JT International SA reacted to this trend by diversifying its leading cigarette brand into the RYO tobacco format. The consumer reception was positive and can be interpreted as a sign of the true potential of the RYO tobacco subsector.
The anticipation of the anti-smoking law
Even if the anti-smoking law will only be partly effective from February 2007 (totally by January 2008) the expectations of French smokers' reactions are very high for both the pro-smoking and anti-smoking members of the population. The fact remains that French people have not totally respected "Evin Law" and there are no real signs that they will be any more responsive to this new anti-tobacco law. The slight increase of the tobacco market in France is very fragile and 2006 was a transitional year.
For more information visit http://www.researchandmarkets.com/reports/c78115.
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