Cigars and Cigarillos Australia offers the very latest sector-by-sector analysis, providing an objective evaluation of the marketplace, including analysis of industry structure, product innovation, market and brand shares, taxation and legislation and forecasts to 2021. Comprehensive analytical interpretation of survey results highlights key issues and emergent trends currently shaping market developments.
Australia has one of the tightest set of regulations on tobacco use in the world, culminating in the use of plain packaging in December 2012. In this hostile environment, cigarette sales have been hardest hit, along with large cigars, but demand for smoking tobacco and cigarillos held up reasonably well until recently. Cigarillo sales peaked in 2005 at 73.2 million pieces but are now down to 52.3 million pieces but account for 92.9% of sector sales, up from 88.3% in 2005.
Following STG's purchase of much of Swedish Match's cigar business, STG was required to divest the Willem II and Wee Willem brands which were subsequently acquired by PMI. In March 2011 STG purchased Lane from Reynolds American, boosting its share to 70.1% in the first 6 months of 2012. PMI now ranks second with around a quarter of the market.