This Key Note Market Report examines the UK market for cigarettes and tobacco products, including packet cigarettes, hand-rolling-tobacco, cigars and pipe tobacco.
The number of adult smokers has declined steadily over the past 5 years as a result of government campaigns to prevent smoking, as well as increased public awareness of the health risks associated with smoking. Despite ongoing reductions in the volume of cigarettes being sold, the value of the cigarettes and tobacco sector grew by 10.4% between 2011 and 2015. The increase in value is mainly a result of tobacco price rises and tax hikes.
Cigarettes in packets are the most popular type of cigarette consumed, making up 85.2% of total cigarettes and tobacco sales in 2015; it was followed by hand-rolling tobacco, at 13.6% of the total. Cigars and pipe tobacco accounted for the remaining share of the market. Sales of cigarettes in packets increased by 9.5% over the past 5 years and this compares with a stronger increase of 19.3% for hand-rolling tobacco over the same period. Demand for hand-rolling tobacco has been growing gradually since the economic downturn as more smokers switched from cigarettes to cheaper hand-rolling tobacco products in order to save money.
Demand for cigars has been slowly falling in recent years, although they are still fairly popular among enthusiasts. The cigar sector contracted in 2012 and 2013, by 3.2% and 10.3% respectively; however, the market bounced back in 2014 and recorded a growth of 3.2%, followed by a...