Up in smoke: The exit of the industry's largest player causes revenue to drop significantly

The performance of the Tobacco Product Wholesaling industry has long been threatened by declining tobacco consumption. Increased awareness of the health risks associated with smoking, such as cardiovascular disease and cancer, has led to falling levels of tobacco consumption among the UK population. In line with this, increasing levels of health consciousness have intensified external competition from alternative products such as e-cigarettes and vapes. Increasingly stringent legislation, such as laws prohibiting the promotion and display of tobacco products and packaging requirements, alongside the imposition of rising taxes and duties on tobacco sales has contributed to the decline in smoking rates.Wholesale bypass remains a prominent threat to industry operators...read more.

Industry Statistics & Market Size
Revenue
£7.7bn
Annual Growth 14-19
-6.4%
Forecast Growth 19-24
Profit
Employment
4,011
Businesses
66

Industry Threats & Opportunities

  • The exit of Palmer & Harvey, formerly a major player, is expected to adversely affect revenue
  • The growing dominance of supermarkets and convenience stores has increased wholesale bypass
  • The continuing growth in popularity of e-cigarettes is expected to constrain industry revenue
  • Industry Report - Industry Products Chapter

    CigarettesA cigarette is a tightly rolled cylinder of cut tobacco wrapped in thin paper and with a filtered tip. Cigarettes are estimated to account for 64.2% of industry revenue in 2018-19. However, the proportion of revenue derived from this segment has declined over the past five years, owing to falling sales stemming from rising health awareness and anti-smoking campaigns encouraging more consumers to give up smoking. The ban on smoking in enclosed public places has also significantly decreased cigarette sales. According to the Office for National Statistics (ONS), the percentage of the UK population that smokes has fallen from 20.2% in 2011 to 15.1% in 2017. Cig...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..

    shopping_cartPURCHASE OPTIONS

    What's in this report

    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
  • Cigarettes
  • Loose tobacco
  • Cigars and pipe tobacco
  • Industry Activities
  • Distributing cigarettes
  • Distributing loose tobacco
  • Distributing cigars
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    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
  • Declining consumption
  • Industry exit
  • Regulatory environment
  • E-cigarettes
  • Wholesale bypass
  • Smuggling smokes
  • Excise duties
  • Profit and

    market structure

  • Chart: Revenue Growth

  • Industry Outlook
  • Competition

    remains intense

  • Increasing intervention
  • Falling participation
  • Future concerns
  • Table: Tobacco Product Wholesaling Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Tobacco Product Wholesaling Industry Lifecycle vs The Economy

  • 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
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Tobacco Product Wholesaling

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Tobacco Product Wholesaling Industry

  • Industry Globalization
    Booker Group Ltd, British American Tobacco plc,
  • Table: Booker Group Ltd - financial performance
  • Table: British American Tobacco plc - financial performance

  • 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
    Table: Industry Data for the Tobacco Product Wholesaling Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Cigarillo
  • 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.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Tobacco Product Wholesaling market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    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 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.

    Contact Us

    Would you like to speak to an IBISWorld representative?

    clear