Burning out: Declining smoking rates and rising regulation have caused revenue to decline

Tobacconists sell tobacco products such as cigarettes, cigars, pipes and accessories. Over the five years through 2018-19, industry revenue is expected to decline at a compound annual rate of 6.7% to £479.6 million. Rising public awareness of the health risks of smoking, driven by intense anti-smoking campaigns by the government and activist groups, has caused smoking rates to fall and sales to plummet for tobacco retailers. Increasingly stringent legislation such as amendments to the Children and Families Act 2014 and the EU Tobacco Product Directive, and the implementation of plain packaging on cigarette and tobacco products has worsened the industry’s operating conditions. Meanwhile competition from supermarkets and convenience stores has intensified...read more.

Industry Statistics & Market Size
Revenue
£479.6m
Annual Growth 14-19
-6.7%
Forecast Growth 19-24
Profit
Employment
4,183
Businesses
1,864
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Stringent regulation and health awareness have caused demand and revenue to fall
  • Growing competition from cross-border tobacco smuggling has dented industry demand
  • Taxation on tobacco products is set to rise faster than inflation, inflating prices and limiting demand
  • Industry Report - Industry Analysis Chapter

    Over the five years through 2018-19, the Tobacconists industry’s revenue is expected to decline at a compound annual rate of 6.7% to £479.6 million. A major factor contributing to industry troubles has been the rising anti-smoking sentiment that is evident throughout much of the Western world. Smoking rates among adults have declined consistently over the past decade, according to figures from the Tobacco Manufacturers’ Association, driven by anti-smoking campaigns and aggressive measures undertaken by health organisations. According to government statistics, the proportion of adults smoking in the United Kingdom has declined to its lowest level since records started in the 1940s. Thi...purchase to read more.

    Additional Insights for the Tobacconists Industry

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

  • Ability to control stock on hand
  • Production of goods currently favoured by the market
  • Attractive product presentation
  • IBISWorld analysts also discuss how external factors such as Demand from supermarkets and Health consciousness in the Tobacconists industry impact industry performance..

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    What's in this report

    What is the Tobacconists Industry?

    This industry includes the retail sale of tobacco and tobacco products in specialised stores. It also includes the sale of smoking accessories such as pipes, lighters, cigarette papers, cigar cases and other related smoking paraphernalia.

    Industry Products
  • Cigarettes
  • Tobacco, snuff and pipes
  • Cigars
  • Smokers' accessories
  • Gifts
  • Industry Activities
  • Cigarette retailing
  • Cigar retailing
  • Loose tobacco retailing
  • Pipe retailing
  • Lighter, paper and smoking accessory retailing
  • Humidor retailing
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from supermarkets
  • Health consciousness
  • Real household disposable income
  • Producer price index for tobacco products (including duty)
  • Expenditure by household income- highest quintile

  • Current Performance
  • Declining prevalence
  • Regulatory environment
  • Excise duties
  • Cross-border tobacco trade
  • Supermarkets dominate
  • New opportunities
  • Market structure and profit
  • Chart: Revenue Growth

  • Industry Outlook
  • Increasing intervention
  • Excise duties
  • Niche demand
  • Table: Tobacconists Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Tobacconists Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Non-Specialised Wholesale Trade
  • Tobacco Product Manufacturing
  • Tobacco Product Wholesaling
  • Watch & Jewellery Wholesaling

  • Products & Services
  • Cigarettes
  • Cigars
  • Tobacco, snuff and pipes
  • Gifts
  • Smokers' accessories
  • Chart: Tobacconists Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Consumers aged between 25 and 34
  • Consumers aged between 35 and 49
  • Consumers aged 50 and over
  • Consumers aged between 18 to 24
  • Chart: Major Market Segmentation for the Tobacconists Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Other costs
  • Chart: Cost Structure Benchmarking – Sector vs Tobacconists

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Tobacconists Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Tobacconists 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 Tobacconists 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
    Humidor
  • An airtight container for keeping cigars or tobacco moist.
  • Snuff
  • Tobacco in powder form, which is sniffed instead of smoked.
  • Spirit Flask
  • A metal container that holds a small amount of alcohol.
  • Tobacconist
  • A retailer that primarily sells cigarettes, tobacco, cigars and related products.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Tobacconists 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 Tobacconists:
    • 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 Tobacconists 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 Tobacconists, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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