Tobacco Product Manufacturing in the UK: Market Research Report

Market Research • Market Size • Industry Statistics • Industry Analysis • Industry Trends

Tobacco Product Manufacturing Market Research Report | SIC C12.000 | May 2015

Shrivelling up: Strict regulation is smoking major manufacturers out of the United Kingdom

IBISWorld’s Tobacco Product Manufacturing market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

Report Snapshot
Market Share of Companies
Gallaher Limited Gallaher Limited market share
Imperial Tobacco Group plc Imperial Tobacco Group plc market share
Industry Statistics & Market Size
Annual Growth 11-16
Annual Growth 16-21
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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


Industry ProductsRelated ReportsTable of Contents

What is the Tobacco Product Manufacturing Industry?

This industry includes companies that manufacture cigarettes, fine-cut tobacco, cigars, pipe tobacco and snuff. The industry also includes firms that stem and re-dry tobacco leaf.

Industry Products
CigarettesLoose tobaccoCigars and pipe tobacco
Industry Activities
CigaretteFine-cut tobaccoCigarPipe tobaccoChewing tobaccoTobacco leaf stemming and re-drying

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