The Asia Pacific is the largest cigarette market in volume sales, accounting for 65% of global cigarette consumption in 2018. While the sales are set to decline over the forecast period due to a combination of tightening legislative landscape and further price increases, new variants such as flavored capsule cigarettes and slim/super slim formats promise great growth potential among younger adult smokers.
Increasing purchasing power boosted the Asia pacific cigarette market while the future outlook doomed
The Asia Pacific remained the largest cigarette market in retail volume and five countries in the region are among the top 10 globally. Cigarettes in the Asia Pacific recovered slightly in the last years driven by the increasing population and purchasing power. Per capita expenditure on cigarettes also saw a rise with tax hikes as well as disposable income in the region surging. However, the sales volume is set to decline over the forecast period due to a combination of tightening legislative landscape and further price increases.
China is undoubtedly the largest market
China occupies an important role in the regional and global context given the size of its market. China holds a 69% share of retail volume sales of cigarettes in the region, and 44% globally in 2018. This is due to the country’s large population as well as increasing income.
Cigarettes losing share to heated tobacco as consumers look for innovative ways of smoking
The modern image and absence of the smell of smoke have been useful tools to highlight the benefits of heated tobacco to consumers. This strategy, along with enormous promotions from major players, worked well in some markets such as Japan and South Korea and eat up a great amount of cigarette consumption. While cigarettes still dominate the general tobacco market in the region, it is gradually losing market share to these upstart devices.
flavoured capsule and slim types arise to be an important growth driver
Diversification is a consumer priority that has emerged in the region. This concern is a strong motor for growth of non-standard cigarettes including flavoured capsule cigarettes and slim/super slim formats. While the general cigarette consumption is expected to drop over the forecast period, these new categories promise great growth potential.
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Source: Euromonitor