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 increasing taxes have created a challenging environment for the few remaining producers in the United Kingdom. As a result, one of the last two producers of manufactured cigarettes in the United Kingdom will have ceased its production by May 2016. This is the main driver behind the rapid depletion of industry revenue during the current year. From May 2016 onwards, Gallaher Limited will be the last remaining major player in the industry. However, Gallaher has already entered its consolidation phase as it plans to shift production abroad to a more hospitable regulatory environment... purchase to read more
Industry Report - Starting a New Business Chapter
The barriers to entering the industry are high. 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. Under current plans, branded cigarette packaging will also be banned from 2016 onwards. In addition, tobacco product manufacturing is highly automated. As .. purchase to read more