Industry Analysis & Industry Trends
The Tobacco Product Manufacturing industry is in a state of rapid decline. Rising health awareness, advertising restrictions, black market trade and ever increasing taxes have created a challenging environment for the few producers left in the United Kingdom. As a result, the only two producers of manufactured cigarettes have entered consolidation phases and are shifting their production plants abroad. Once these moves have been completed, the industry will have almost disappeared. Industry revenue is expected to decline at a compound annual rate of 11.4% over the five years through 2015-16, reaching £6.2 billion. This includes a contraction of 25.8% during the current year.
Smoking rates in the United Kingdom have fallen considerably in recent decades... purchase to read more
Industry Report - Starting a New Business Chapter
The barriers to entering the industry are high. The top two players account for the majority of industry revenue and compete for market share in a declining market. Once the top two producers have left the market, the harsh regulatory climate will make it difficult for a new large-scale participant to fill the shoes of the departed manufacturers.
The Tobacco Advertising and Promotion Act 2002 prohibits advertising of tobacco products (including sponsorship) in England, Scotland, Wales and Northern Ireland. From 2006, regulations restricting advertising on the internet were also introduced. Regulations such as this may pose as barriers to entry as new operators may find it difficult to establish brand names... purchase to read more