Smoking bans in public places will result in slower revenue growth for cigarette manufacturers.
San Francisco, CA (PRWEB) December 01, 2012
Revenue for the Cigarette Manufacturing industry in China has been increasing 13.9% annually over the past five years. Despite the recent slowdown in China's economy, the country's large smoker population is set to drive strong growth in industry revenue to $116.0 billion in 2012, says IBISWorld. Even the global economic recession of 2008 and 2009 had very little effect on the industry as the demand elasticity for cigarettes is quite low and stable, and because cigarette prices are very low in China.
There are about 48 cigarette manufacturers in the Cigarette Manufacturing industry in China, although merger activity has led to a fall in enterprise numbers over the past five years. Revenue from the top four enterprises – Hongyun Honghe Group, Shanghai Tobacco (Group) Corporation, Hongta Group, and China Tobacco Hunan Industrial – accounts for about a third of total industry revenue, which reflects the wide range of cigarette and cigar brands in China. Each brand has a range of different level cigarettes and loyal consumers. In recent years, Chinese smokers have attached greater importance to brand reputation and there has been a consumer shift toward famous-brand, high-quality cigarettes. As a result, domestic cigarette manufacturers have invested in developing their brands and increasing production of higher value-added products.
Stricter government controls on cigarette smoking in public places and other buildings will result in slower demand growth in the future, says IBISWorld. Nevertheless, the smoking population in China is likely to remain high and pricing levels low.
For more information, visit IBISWorld’s Cigarette Manufacturing in China industry report page.
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IBISWorld Industry Report Key Topics
The Cigarette Manufacturing industry in China manufactures cigarettes, cigars and cigarette filters. Products include Virginia-type cigarettes, blend-type cigarettes and cigars. This industry does not include the manufacturing of fiber tows for cigarettes.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.