Forgot Password?

Tobacco Product Wholesaling in the UK: Market Research Report

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

Tobacco Product Wholesaling Market Research Report | SIC G46.350 | Mar 2017

Up in smoke: Wholesale bypass, increased health consciousness and excise duties led to decline

IBISWorld’s Tobacco Product Wholesaling market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

Report Snapshot
Market Share of Companies
Booker Group plc Booker Group plc market share
British American Tobacco British American Tobacco market share
Palmer & Harvey McLane Limited Palmer & Harvey McLane Limited  market share
Philip Morris International Philip Morris International market share
Industry Statistics & Market Size
Annual Growth 12-17
Annual Growth 17-22
Purchase to read more
Purchase to read more
Industry Threats & Opportunities
  • Increasingly stringent legislation has caused smoking to decline, limiting industry demand
  • New legislation for plain packaging is expected to lead to decreased sales of tobacco products
  • Excise duties are forecast to continue to increase over the next five years
  • ... purchase to read more

Industry Analysis & Industry Trends

The Tobacco Product Wholesaling industry is being stubbed out by the surge of anti-smoking sentiment in the West. Wholesalers are being increasingly bypassed by larger retailers, such as supermarkets and multinational manufacturers, which have sought to internalise their wholesaling functions to improve efficiencies and maintain profit margins.

Increasingly stringent legislation, such as laws prohibiting the promotion and display of tobacco products, packaging requirements and the imposition of rising taxes and duties on tobacco sales, has contributed towards the decline in the prevalence of smoking across the United Kingdom. In 2015, the ONS reported 16.9% of the population aged 16 and over identified as smokers, a substantial decrease from 45% in 1974... purchase to read more

Industry Report - Industry Analysis Chapter

The Tobacco Product Wholesaling industry distributes cigarettes, cigars, smokeless tobacco products and smoking accessories from manufacturers to retailers. In the face of strong anti-smoking attitudes, the prevalence of smoking in the United Kingdom has declined consistently over the past decade. Wholesale bypass, increasingly stringent regulations and tobacco smuggling have also hampered the industry’s prospects. Over the five years through 2016-17, industry revenue is forecast to decline at a compound annual rate of 3.7% to £8.8 billion. In 2016-17, revenue is forecast to decline by 6.9%. Revenue is forecast to decline at faster rate than previously due to the introduction of plain packaging laws. purchase to read more

Additional Insights for the Tobacco Product Wholesaling Industry

IBISWorld identifies 250 Key Success Factors for a business.The most important for the Tobacco Product Wholesaling Industry are

  • Ability to avoid wholesale bypass
  • Ability to control stock on hand
  • Ability to pass on cost increases
  • IBISWorld analysts also discuss how external factors such as Health consciousness and Demand from supermarkets in the Tobacco Product Wholesaling industry impact industry performance... purchase to read more


    Industry ProductsRelated Reports

    What is the Tobacco Product Wholesaling Industry?

    Companies in this industry distribute tobacco products. They include specialist tobacco wholesalers, tobacco manufacturers that distribute their own products directly to retailers and wholesalers that distribute a range of products and tobacco. Tobacco products include cigarettes, loose tobacco and cigars. The industry does not include the sale of e-cigarettes or related equipment.

    Industry Products
    CigarettesLoose tobaccoCigars and pipe tobacco
    Industry Activities
    Distribution of cigarettesDistribution of loose tobaccoDistribution of cigars

    Table of Contents
    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Health consciousness
  • Demand from supermarkets
  • Demand from convenience stores
  • Producer price index for tobacco products (including duty)
  • Demand from tobacconists
  • Current Performance
  • Clearing the air
  • Vaping competition
  • Plain packaging
  • Duties affecting profit
  • Supermarkets dominating
  • Smuggling smokes
  • Chart: Revenue Growth
  • Industry Outlook
  • Disappearing manufacturers
  • Low embers
  • Burn out
  • Extinguished by alternatives
  • Table: Tobacco Product Wholesaling Industry Revenue Outlook
  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Tobacco Product Wholesaling Industry Lifecycle vs The Economy
  • Products & Markets
    Supply Chains
  • Key Buying Industries
  • Supermarkets
  • Tobacconists
  • Petrol Stations
  • Pubs & Bars
  • Key Selling Industries
  • Tobacco Product Manufacturing
  • Products & Services
  • Cigarettes
  • Loose tobacco
  • Cigars and pipe tobacco
  • Other
  • Chart: Tobacco Product Wholesaling Industry Products and Services Segmentation
  • Demand Determinants
    Major Markets
  • Supermarkets and Grocery Stores
  • Convenience Stores and Petrol Stations
  • Tobacconists
  • Other
  • Chart: Major Market Segmentation for the Tobacco Product Wholesaling Industry
  • International Trade
    Business Locations
  • Chart: Business Locations by State
  • Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases, taxes and duties
  • Wages
  • Advertising and marketing
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Tobacco Product Wholesaling
  • Basis of Competition
  • Internal competition
  • External competition
  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Tobacco Product Wholesaling Industry
  • Industry Globalization
    Major Companies
    Palmer & Harvey McLane Limited
    Booker Group plc
    Philip Morris Limited
    British American Tobacco plc
  • Table: Palmer & Harvey McLane Limited - financial performance
  • Table: Booker Group plc - financial performance
  • Table: Philip Morris Limited - financial performance
  • Table: British American Tobacco plc - financial performance
  • Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Tobacco Product Wholesaling Industry
  • Chart: Tools of the Trade: Growth Strategies for Success
  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth
  • Regulation & Policy
    Industry Assistance
    Key Statistics
  • Table: Industry Data for the Tobacco Product Wholesaling Industry
  • Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Table: Annual Percentage Change for Key Industry Data
  • Table: Key Ratios for Industry Key Data
  • Jargon & Glossary
  • A cigarillo is a short, narrow cigar. Cigarillos are smaller than cigars but larger than cigarettes.
  • E-Cigarette
  • a cigarette-shaped device containing a nicotine-based liquid that is vaporized and inhaled, used to simulate the experience of smoking tobacco.
  • Snuff
  • A smokeless tobacco made from ground tobacco leaves that is inhaled.

  • Why Buy this Report?
    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Tobacco Product Wholesaling:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Tobacco Product Wholesaling market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Tobacco Product Wholesaling, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

    View Sample
    Select Clients
    Back to Top