In a pinch: The end of UK tobacco product manufacturing has hastened industry decline

Tobacconists sell tobacco products such as cigarettes, cigars, pipes and accessories. The UK Tobacconists industry has been plagued by difficult trading conditions over the past five years, which have negatively influenced industry revenue. 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, the EU Tobacco Product Directive and the implementation of plain packaging on cigarette and tobacco products have only worsened the operating conditions for industry players...read more.

Industry Statistics & Market Size
Revenue
£455.5m
Annual Growth 13-18
-9.2%
Forecast Growth 18-23
Profit
Employment
4,434
Businesses
1,788
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Intense anti-smoking campaigns and rising regulation weighed on industry demand
  • Government initiatives and public health campaigns have intensified pressures on the industry
  • Many retailers havemoved their operations purely online, thereby exiting the industry
  • Industry Report - Industry Key Buyers Chapter

    The Tobacconists industry is highly fragmented and has a very low level of market share concentration. Concentration measures the extent to which major players dominate the industry, and the absence of major players thus supports this industry's low concentration. Industry retailers have struggled to survive over the past five years as legislative changes have made it more difficult to sell tobacco products. The banning of smoking in enclosed public places and the introduction of bans concerning plain packaging, advertising and retail display have discouraged smoking by restricting the areas where tobacco and its related products can be consumed. Anti-smoking campaigns by health organisations and the government have discouraged smoking and reduced demand...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
  • Smuggling
  • Supermarkets dominate
  • Profit and market structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Increasing intervention
  • Excise duties
  • Performance burnout
  • 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
  • Tobacco, snuff and pipes
  • Cigars
  • Gifts
  • Smokers' accessories
  • Chart: Tobacconists Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Consumers aged 50 and over
  • Consumers aged between 35 and 49
  • Consumers aged between 25 and 34
  • 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 competitionExternal 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 (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    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 can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    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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