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Cigars and Cigarillos in Denmark, 2019

Cigars and Cigarillos in Denmark, 2019

  • March 2019
  • 85 pages
  • ID: 4806034
  • Format: PDF
  • By GlobalData

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Cigars and Cigarillos in Denmark, 2019

Summary
Data released as part of Denmark’s most recent 2017 National Health survey suggests that 24.8% of men and 20% of women are smokers, of which 18.5% and 15.4% are daily smokers. This translates into a smoking population of one million adults in 2017 or 22.4% of the adult population.

Denmark has long been an established market for cigar products despite consumption being in almost continuous decline until very recently.Sales were estimated at 98 tons in 2018, which is down on 231 tons in 2008.

As a share of total tobacco volumes, cigars and cigarillos amounted to 1.6% of the market in 2018. Cigarettes are the biggest sector with 91.4% of volumes in 2018.

Small cigars and cigarillos is the largest sector within the market, with noticeable strengthening in its profile since 2007. Then, they accounted for 79.5% of sales, which had increased to 92% of sales by 2018. Other sectors comprise cheroots and large cigars. Both of these take a much smaller share of sales: 5.5% and 2.5%, respectively, in 2017. These also are seeing volumes and share fall, although in the case of large cigars some stabilization in sales is evident with a rise in volumes to 1.2 million pieces in 2017.

Cigar production grew following ST’s purchase of Imperial Tobacco Canada’s cigar business from BAT when production was transferred to STCG. Production in Denmark rose by 11.7% to 523.1 million pieces in 2004, although it subsequently fell back to 58.6 million pieces in 2017. Imports were down on recent years at a reduced 75 tons in 2017. Exports were also down in 2017 at a much reduced 96 tons. The Netherlands is both the main import and export market.

The market is dominated by STG Denmark, which is a 100%-owned subsidiary of the Scandinavian Tobacco Group (STG).STG includes STG Nykøbing based at Aarhus, STG Eersel in the Netherlands, and STG Lummen (Belgium).

STG Denmark held a reduced 68.7% of the market in 2017. Second place is taken by Von Eicken (15.8%) while Ritmeester is third (13.2%).

The report "Cigars and Cigarillos in Denmark, 2019", provides extensive and highly detailed current and future market trends in the Danish 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: STG Denmark, Von Eicken, Ritmeester, Habanos Nordic, Philip Morris, Swedish Match

Scope
- As a share of total tobacco volumes, cigars and cigarillos amounted to 1.6% of the market in 2018.
- Imports were down on recent years at a reduced 75 tons in 2017.
- Denmark levies both a specific and an ad valorem excise duty on cigars and cigarillos, along with the general value added tax, which is applied at the nominal rate of 25%, equivalent to 20% of the retail price.
- The recent good progress made by the market came to an end during 2014 when a tax hike effectively removed the price advantage of cigarillos over manufactured cigarettes, resulting in a collapse in sales.

Reasons to buy
- Get a detailed understanding of consumption to align your sales and marketing efforts with the latest trends in the market.
- Identify the areas of growth and opportunities, which will aid effective marketing planning.
- The differing growth rates in regional product sales drive fundamental shifts in the market.
- This report provides detailed, authoritative data on these changes - prime intelligence for marketers.
- Understand the market dynamics and essential data to benchmark your position and to identify where to compete in the future.

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