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Cigarettes in China

China cigarettes market: 1% CAGR growth forecast between 2012-2017

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2014-03-25 03:54:02 - Cigarettes in China - a new market research report on

STMA is the sole regulator of the tobacco industry in China and is responsible for implementing tobacco-related standards, targets and circulars. In addition, STMA also monitors the implementation of the regulations it promulgates. Furthermore, STMA also controls imports of cigarettes and aims to protect domestic tobacco manufacturers. Overall, the tobacco industry in China experienced standardised and concentrated development over the review period under the centralised management and supervision of STMA.

With growing disposable incomes as a result of steady economic development over the review period, more smokers are trading up to better quality cigarettes which are usually higher priced. This not only pushed up average unit prices but also current value growth in 2012. Overall, value growth was stronger than volume



growth during the year.

With the Chinese government´s efforts to control growth, the number of smokers in China is expected to grow at an average annual rate of 1% from 2012 to 2017 – a slight decline from the review period average. This decline in growth is expected to lead to sluggish volume growth within cigarettes over the forecast period, with volume sales projected to increase at an average annual rate of 2% (vs. review period average of 4%). In addition, less frequent smoking may also result in sluggish volume growth due to rising health awareness among Chinese smokers, many of whom may look to smoke less or even quit entirely.

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