Industry Analysis & Industry Trends
The Tobacco Product Manufacturing industry is under fire. Since the 1960s, smoking rates in the United Kingdom have fallen from over 50% to 20% in 2011 as people have become aware of the link between smoking and diseases such as cancer. Although the price of tobacco products is relatively static, there have been some rises, which have also contributed towards the decline in smoking rates. The price rises have led to a shift away from premium brands towards economy brands. For instance, demand for roll-your-own cigarettes has increased at the expense of filter cigarettes.
Government measures designed to reduce smoking rates have added to the negative press surrounding health-related smoking risks and contributed to declining smoking rates... purchase to read more
Industry Report - Starting a New Business Chapter
IBISWorld believes that barriers to entry in this industry are high and that the industry is highly concentrated. The top three players account for the majority of industry revenue and compete for market share in a declining market. New industry operators may find it difficult to compete with those that have established brand names. In addition, those already in the industry have large distribution networks (industry operators Imperial Tobacco, Japan Tobacco and British American Tobacco operate globally) and have a large number of brands and product varieties. New operators may find it difficult to compete on this basis.
The industry is also highly regulated. For example, there are restrictions on advertising tobacco products in the United Kingdom... purchase to read more