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 - Industry Analysis Chapter
The Tobacco Product Manufacturing industry is nearing the end of its life cycle. The industry has struggled over the past five years, hindered by declining smoking rates in the United Kingdom, steeper government taxes on tobacco manufacturers, regulations restricting advertising and competition from the black market tobacco trade. As a result, the few remaining major manufacturers have outlined plans to exit the market. Over the five years through 2015-16, industry revenue is expected to contract at a compound annual rate of 11.4% and reach £6.2 billion. This includes a dramatic contraction of 25.8% during the current year.
Demand burns out
Smoking rates in the United Kingdom declined steadily over the past decade, continuing a long-term trend... purchase to read more