Good performance of tobacco market in 2010
The overall tobacco market in Austria registered a good performance over the review period. In spite of the stricter tobacco legislation imposed in 2009 and then implemented in 2010, the consumption of cigarettes did not decline and Austrian consumers did not turn away from smoking completely. Furthermore, the emergence of economy brands also contributed to the stable number of smokers in 2010. These positive developments contributed to an overall good value and volume growth of the entire tobacco market in 2010.
Partial smoking ban and shift to economy brands
The restriction on smoking in foodservice outlets introduced in 2009 were completely implemented in 2010, however, this has had little effect on the number of smokers in Austria as well as on the sales of tobacco products in general. Since there are now foodservice outlets with partial and total smoking bans and since the majority of outlets have a partial smoking ban, Austrians did not consume fewer cigarettes but simply shifted to foodservice outlets where smoking is allowed. Another observable trend in 2010 was the trend towards economy cigarette brands as well as the consumer shift from cigarettes to RYO tobacco. In order to cut down on spending on tobacco, Austrians are increasingly turning to mass market brands and to cheaper alternatives.
Multinationals lead sales
The leading manufacturers Austria Tabak, Philip Morris and Imperial Tobacco were able to obtain the majority of market share within the tobacco category offering their well-known global flagship brands as well as cheaper economy brands that are increasingly gaining popularity. All three manufacturers employed the strategy of offering a wide range of products across all price segments thus meeting demands from a wider consumer base.
Specialist tobacconists lead in distribution
In 2010, the retail distribution of tobacco in Austria remained under the control of the Monopoly Administrator, which has legislation in place that protects the interests of specialist tobacco outlets. As a result, tobacco specialists were again the leading distributors in all tobacco categories. The other retailers permitted to sell tobacco products in Austria are newsagents-tobacconists/kiosks, foodservice outlets, vending and forecourts. More mainstream retailers, such as supermarkets/hypermarkets and discounters, are not permitted to sell tobacco products under Austrian legislation.
Fair future development
Over the forecast period, the overall tobacco market in Austria is expected to register a good performance although at a slower growth rate than that seen over the review period. The slower growth rate in the future will come as a consequence of higher prices of cigarettes and higher taxation on tobacco, which was imposed at the beginning of 2011. Due to this, consumers will either only opt for economy brands or switch completely to other categories. The drop in value growth within cigarettes might slow down the growth of the entire market in the future.
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Other New Reports for the Tobacco Market available with ReportsnReports.com for following countries:
- Ireland @ http://www.reportsnreports.com/reports/135113-tobacco-in-ireland.html
- Slovakia @ http://www.reportsnreports.com/reports/135110-tobacco-in-slovakia.html
