Cigars and Cigarillos in Italy, 2019

Cigars and Cigarillos in Italy, 2019

Summary

Based on the latest available figures, as of 2017, it is estimated that the total regular smoking population at 11.1 million adults aged 18 and over in Italy. This compares with 11.5 million in 2000 and 13.6 million in 1990. As of 2017, 58.6% of the current smoking population is male and 41.4% is female. There were an estimated 6.5 million adult male smokers and 4.6 million adult female smokers in 2017.

The Italian tobacco product market is large, at 74,000 tons in 2018, and is dominated by sales of manufactured cigarettes. The volume sales of manufactured cigarettes reached 67,900 tons in 2018, equivalent to 91.8% of the total market. Despite rising prices and growing health awareness, cigarette volumes have remained relatively buoyant, although demand has been declining since 2007, as prices and smoking restrictions have increased. Smoking tobacco has recently been the star performer with forecasted sales volumes of 5.9% in 2018.

Volumes in 2016 stood at 491.9 million pieces although with growth in cigarillos, reached 848.1 million pieces in 2017 and further growth was forecasted for 2018. Historically, the market has been dominated by cigars. These accounted for 61% of sales in 1990 but a reduced 20.2% in 2018. Per capita levels were 14 pieces per person in 2018. The Italian market for cigars and cigarillos is one of the most buoyant in Europe. It has been recently stimulated by demand for value cigarillos as well as the impact of the TPD2 regulations since 2017.

Production volumes were estimated up at 435 tons in 2017 thanks to a combination of rising local sales and increased export activity. This is reflected in export volumes, which were 141.6 tons in 2017. Imports, however, have seen the most growth and were up at 1,203 tons in 2017 as demand for cigarillos expanded. Until recently, cigar and cigarillo production was in decline; however, the revival in the popularity of cigars/cigarillos in recent years has boosted output.

PMI leads the cigarillo market with 45.3%, followed by Dannemann (14.1%), BAT (10.6%), and Agio (10.1%). MS Toscano leads the large cigar market with 93.9% in 2017. Until very recently the market was dominated by BAT Italia, which acquired the cigar interests of the former state monopoly ETI (Ente Tabachi Italiani) in 2003. BAT sold the former ETI cigar business unit to Gruppo Maccaferi in 2006. Gruppo Maccaferi's Manifatture Sigaro Toscano (MST) subsidiary came to dominate, although was usurped by Philip Morris in 2017 with 35.8%.

Volumes are forecast to rise by 23.6% between 2018 and 2028, to 1,073 million pieces. This increase is expected to come from the recent, and future, entry of cigarette companies into the market offering pseudo-cigarette brands as 10-pack cigarillos. Per capita consumption over the same period will rise by 22.7%, to 17.1 pieces. Cigarillo volumes are forecast up 32.3% over this period to 917 million pieces in 2028, whilst cigar volumes are forecast to drop 10.9% to 156 million pieces.

The report "Cigars and Cigarillos in Italy, 2019", provides extensive and highly detailed current and future market trends in the Italian tobacco market. It covers market size and structure along with per capita and overall consumption. Additionally, it focuses on brand data, retail pricing, prospects, and forecasts for sales and consumption until 2028.

Companies mentioned: Philip Morris, MS Toscano, Dannemann, Agio, BAT, STG, J Cortès, Cuba Cigar Trading, Moderno Opificio Italiano, and others

Scope

• Historically, the market has been dominated by cigars. These accounted for 61% of sales in 1990 but a reduced 20.2% in 2018.


• The tax system within Italy applies an ad valorem rate of 23% and VAT, which is currently equivalent to 18%.


• Based on the latest available figures, the author estimates the total regular smoking population at 11.1 million adults aged 18 and over in 2017.


• At a global level, the World Health Organisation Framework Convention on Tobacco Control ("WHO FCTC") came into force in February 2005.

Reasons to Buy

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