Cigarettes in Peru 2020

Cigarettes in Peru
Euromonitor International
August 2020
CIGARETTES IN PERU Passport i
LIST OF CONTENTS AND TABLES

HEADLINES ................................................................................................................................. 1
PRE-COVID-19 PERFORMANCE ............................................................................................... 1
Increased prices arising from tax hikes affect retailers’ margins, result in consumers shifting to
illicit products ............................................................................................................................ 1
Kent brand takes category lead, Caribe suffers as Coltabaco closes production plants, leaving
A gap in the economy segment ................................................................................................ 1
Further tax hike raises prices .................................................................................................... 2
2020 AND BEYOND ..................................................................................................................... 2
COVID-19 impact...................................................................................................................... 2
Recovery and opportunities ...................................................................................................... 2
TAXATION AND PRICING ........................................................................................................... 3
Taxation rates ........................................................................................................................... 3
Summary 1 Taxation and Duty Levies 2014-2019 ........................................................... 3
Average cigarette pack price breakdown .................................................................................. 3
Summary 2 Average Cigarette Pack Price Breakdown: Brand Examples ....................... 3
CATEGORY DATA ....................................................................................................................... 4
Table 1 Sales of Cigarettes: Volume 2014-2019 ....................................................... 4
Table 2 Sales of Cigarettes by Category: Value 2014-2019 ..................................... 4
Table 3 Sales of Cigarettes: % Volume Growth 2014-2019 ...................................... 4
Table 4 Sales of Cigarettes by Category: % Value Growth 2014-2019 ..................... 4
Table 5 Sales of Cigarettes by Blend: % Volume 2014-2019 .................................... 5
Table 6 Sales of Cigarettes by Standard/Menthol/Capsule: % Volume 2014-
2019 ............................................................................................................. 5
Table 7 Sales of Cigarettes by Regular/Slim/Superslim/Microslim: % Volume
2014-2019 .................................................................................................... 5
Table 8 Sales of Cigarettes by Pack Size: % Volume 2014-2019 ............................. 5
Table 9 Sales of Cigarettes by Price Band: % Volume 2014-2019 ........................... 6
Table 10 NBO Company Shares of Cigarettes: % Volume 2015-2019 ....................... 6
Table 11 LBN Brand Shares of Cigarettes: % Volume 2016-2019 .............................. 6
Table 12 Sales of Cigarettes by Distribution Format: % Volume 2014-2019 ............... 8
Table 13 Illicit Trade Estimate of Cigarettes: Volume 2014-2019................................ 8
Table 14 Forecast Sales of Cigarettes: Volume 2019-2024 ........................................ 9
Table 15 Forecast Sales of Cigarettes by Category: Value 2019-2024....................... 9
Table 16 Forecast Sales of Cigarettes: % Volume Growth 2019-2024 ....................... 9
Table 17 Forecast Sales of Cigarettes by Category: % Value Growth 2019-
2024 ............................................................................................................. 9
Table 18 Forecast Sales of Cigarettes by Blend: % Volume 2019-2024 ..................... 9
Table 19 Forecast Sales of Cigarettes by Standard/Menthol/Capsule: %
Volume 2019-2024 ..................................................................................... 10
Table 20 Forecast Sales of Cigarettes by Regular/Slim/Superslim/Microslim: %
Volume 2019-2024 ..................................................................................... 10
Table 21 Forecast Sales of Cigarettes by Pack Size: % Volume 2019-2024 ............ 10
Table 22 Forecast Sales of Cigarettes by Price Band: % Volume 2019-2024 .......... 10
© Euromonitor International
CIGARETTES IN PERU Passport 1
CIGARETTES IN PERU
HEADLINES
▪ COVID-19 exacerbates shift to illicit products in 2020, due to health awareness, reduced
spending power, and fewer opportunities to socialise outside the home
▪ Cigarettes category sees negative growth of 13% in current value terms and 13% in volume
terms in 2019, standing at PEN1.6 billion and 1.5 billion sticks respectively
▪ Growth in sales of illicit products impacts category’s growth in 2019
▪ British American Tobacco del Perú SAC consolidates dominant position in 2019, gaining one
percentage point in volume share to 90%
▪ Category set to see -6% volume CAGR over forecast period due to awareness of health
issues post- pandemic, and continued shift to illicit products at lower prices
PRE-COVID-19 PERFORMANCE
Increased prices arising from tax hikes affect retailers’ margins, result in
consumers shifting to illicit products
Constant tax adjustments continued to impact tobacco consumption in 2019. This impacted
retail channels as it affected margins. Meanwhile, consumers increased consumption of other
tobacco products, such as e-cigarettes, in response to rising cigarette prices. This situation
resulted in a complex landscape, within which manufacturers focused efforts on increasing
operational efficiency.
The growth of the illicit market was having a greater effect on the traditional channel, where
illicit penetration was growing in 2019. An increasing number of consumers were seeking
cheaper alternatives, and players in the channel looked to gain as much margin as possible.
This made illicit products attractive for both traditional retailers and consumers alike. In 2019 this
scenario looked set to continue as more strict tax regulations were being implemented in Peru.
The convenience stores channel was also gaining presence and importance as a point of
purchase for cigarettes in the country. According to trade interviews, PMI had good support in
2019, being present in one of the most important convenience store chains: Tambo. This
allowed the brand to maintain relative stability at the end of the review period.
Kent brand takes category lead, Caribe suffers as Coltabaco closes

production plants, leaving A gap in the economy segment
In 2019 British American Tobacco del Perú SAC’s Hamilton brand was replaced by the Kent
brand. The change generated a resilient brand performance, especially considering the tax
increase of the previous year. As a result of this change, Kent became the category’s leading
brand. Philip Morris Perú SA’s Caribe brand saw a decline in its volume share in 2019.
Historically, the brand was produced in Colombia, but in mid-2019 Coltabaco closed the
production plants. This resulted in a void in the economy price segment that consumers looked
set to fill with other economy brands, or even illicit alternatives.
Brands face the challenging context from different perspectives. For Philip Morris, the closure
of its factories in Colombia consolidated its integration process with affiliates in Colombia,
Ecuador, Peru and Venezuela in order to create synergies. Meanwhile, BAT was changing its
distribution strategy, transitioning from direct distribution to distribution through strategic

partners. This move was to make local operations more efficient.
Further tax hike raises prices

At the beginning of 2020 The Ministry of Economy and Finance (MEF) raised the amounts of
the Selective Consumption Tax (ISC) applied to cigarettes. The increases ranged from PEN0.27
to PEN0.32 per unit (stick), which implies an increase of PEN1.00 per box of 20 cigarettes, that
is, in average a 7% increase in the price reported in 2019 (Ministerial Resolution No. 034-2020-
EF/15, published 24 January).
2020 AND BEYOND
COVID-19 impact
Sales of cigarettes are now expected to see negative growth of 2% in 2019 constant value
terms in 2020 overall in light of the impact of COVID-19. This compares to growth of 0.5%
forecast in 2019 constant value terms in our 2020 edition published in February 2020 (pre-
COVID-19).
While lockdown restrictions arising from COVID-19 have had some impact on demand due to
reduced opportunities to socialise, the addictive nature of nicotine means its users are habitual
to an extent that neutralises the impact of such crises. Indeed, many consumers increase
consumption as a coping mechanism during periods of economic distress. However, the
consumption that persists is of a lower quality, and this represents a serious issue for an
industry already struggling to achieve revenue growth. The majority of tobacco users will
continue to smoke in the short term, even if their consumption levels are moderated. Additional
free time, coupled with boredom and anxiety, will lead to increased smoking among some
consumers. However, reduced spending power will impact demand at a time when many
consumers are trading down to the cheaper alternative of illicit products.
Recovery and opportunities

In the post-pandemic environment, the cigarettes category will remain confronted by those
who seek to reduce expenditure on tobacco by shifting to illicit products. The Peruvian
Government’s tax hike to 7% per pack, implemented at the beginning of 2020, is set to further
increase consumer interest in illicit products over the forecast period. Furthermore, consumers
will be more conscious of health issues in the COVID-19 world, particularly immune health. As a
result they will inhabit public spaces less frequently, consider interactions with others more
carefully, and scrutinise the value of their consumption more closely.
The greatest impact of COVID-19 will be evident in the long term, as consumers re-evaluate
their cigarette consumption given dramatically changed income levels, as well as new social and
health contexts. There may well be further taxation increases, perhaps extending into newer,
reduced-risk delivery mechanisms, as the government seeks to fund its response. Furthermore,
the notion that smokers are harming not just themselves but society as a whole by impairing the
capacity of health services to cope with chronic public health episodes, is likely to become
increasingly entrenched.
In the medium term, the most significant fallout from COVID-19 will come from the resultant
severe economic downturn. Post 2008-2009’s Global Financial Crisis, the cigarettes category
saw volumes decline as consumers moved towards cessation, or purchases of cheaper
products, such as economy and illicit cigarettes. With these trends already evident in Peru in
2019, they are only likely to be exacerbated as the country recovers from the pandemic.
TAXATION AND PRICING
Taxation rates
Summary 1 Taxation and Duty Levies 2014-2019

Units 2014 2015 2016 2017 2018 2019
Ad % MSP 0.0 0.0 0.0 0.0 0.0 0.0

valorem
excise
VAT/sale % of 15.3 15.3 15.3 15.3 15.3 15.3

s taxes TIRSP
Specific PEN per 0.1 0.1 0.2 0.2 0.3 0.3

taxes stick
Source: Euromonitor International
Average cigarette pack price breakdown
Summary 2 Average Cigarette Pack Price Breakdown: Brand Examples

P = ‘price’
in Peruvian
nuevo sol
Premium Mid Priced Economy
Lucky Kent Pall Mall

Strike
(Pack of (Pack of (Pack of

20) 20) 20)
P % P % P %
Wholesale 8.19 44.26 5.82 37.56 3.49 27.95
Retailer 1.09 5.90 0.91 5.90 0.70 5.60
TOTAL 9.28 50.16 6.74 43.46 4.19 33.55

Retained
Specific 6.40 34.59 6.40 41.29 6.40 51.20

Excise
Ad 0.00 0.00 0.00 0.00 0.00 0.00

valorem
Excise
VAT 2.82 15.25 2.36 15.25 1.91 15.25
TOTAL 9.22 49.84 8.76 56.54 8.31 66.45

Tax
End Price 18.50 100.00 15.50 100.00 12.50 100.00
Source: Calculated from storecheck data and Taxation and Duty Levies Table
Notes: Figures may not sum up to 100% due to rounding
CATEGORY DATA
Table 1 Sales of Cigarettes: Volume 2014-2019
million sticks
2014 2015 2016 2017 2018 2019
Cigarettes 2,392.4 2,319.0 2,245.7 1,916.5 1,834.3 1,595.1

Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 2 Sales of Cigarettes by Category: Value 2014-2019
PEN million
2014 2015 2016 2017 2018 2019
Cigarettes Including 851.0 882.9 1,112.0 1,034.9 1,236.3 1,075.1

Fine Cut Stick Equivalent
Fine Cut Cigarettes - - - - - -
Cigarettes 851.0 882.9 1,112.0 1,034.9 1,236.3 1,075.1
Table 3 Sales of Cigarettes: % Volume Growth 2014-2019
% volume growth
2018/19 2014-19 CAGR 2014/19 Total
Cigarettes -13.0 -7.8 -33.3

Table 4 Sales of Cigarettes by Category: % Value Growth 2014-2019
% current value growth

2018/19 2014-19 CAGR 2014/19 Total
Cigarettes Including Fine Cut Stick -13.0 4.8 26.3

Equivalent
Fine Cut Cigarettes - - -
Cigarettes -13.0 4.8 26.3
Table 5 Sales of Cigarettes by Blend: % Volume 2014-2019
% retail volume
2014 2015 2016 2017 2018 2019
American Blend 97.1 97.0 96.9 96.7 96.6 96.5

Virginia - - - - - -
Other Blend 2.9 3.0 3.1 3.3 3.4 3.5
Total 100.0 100.0 100.0 100.0 100.0 100.0
Table 6 Sales of Cigarettes by Standard/Menthol/Capsule: % Volume 2014-2019
% retail volume
2014 2015 2016 2017 2018 2019
Standard (non-capsule/ 58.2 57.5 56.8 56.1 55.4 54.7

non-menthol)
Flavour Capsule (all 22.5 22.8 23.1 23.4 23.7 24.0
flavours)
Menthol (non-capsule) 19.3 19.7 20.1 20.5 20.9 21.3
Total 100.0 100.0 100.0 100.0 100.0 100.0
Table 7 Sales of Cigarettes by Regular/Slim/Superslim/Microslim: % Volume 2014-2019
% retail volume
2014 2015 2016 2017 2018 2019
Regular 100.0 100.0 100.0 100.0 100.0 100.0

Slim 0.0 0.0 0.0 0.0 0.0 0.0
Superslim - - - - - -
Microslim - - - - - -
Total 100.0 100.0 100.0 100.0 100.0 100.0
Table 8 Sales of Cigarettes by Pack Size: % Volume 2014-2019
% retail volume
2014 2015 2016 2017 2018 2019
< 20 54.7 55.0 55.3 57.4 58.6 60.4

20s 45.3 45.0 44.7 42.6 41.4 39.6
Total 100.0 100.0 100.0 100.0 100.0 100.0
Table 9 Sales of Cigarettes by Price Band: % Volume 2014-2019
% retail volume
2014 2015 2016 2017 2018 2019
Economy price band 8.1 7.9 5.0 4.7 3.4 2.7

Mid price band 22.8 22.8 26.0 29.0 34.4 33.0
Premium price band 69.1 69.4 69.0 66.3 62.2 64.3
Total 100.0 100.0 100.0 100.0 100.0 100.0
Table 10 NBO Company Shares of Cigarettes: % Volume 2015-2019
% retail volume
Company 2015 2016 2017 2018 2019
British American 88.3 89.6 89.8 87.8 89.9

Tobacco del Perú SAC
Philip Morris Perú SA 10.3 9.1 9.5 9.1 8.3
Others 1.4 1.4 0.8 3.1 1.7
Total 100.0 100.0 100.0 100.0 100.0
Table 11 LBN Brand Shares of Cigarettes: % Volume 2016-2019
% retail volume
Brand (GBO) Company (NBO) 2016 2017 2018 2019
Kent Blue (British British American - - - 18.3

American Tobacco Plc) Tobacco del Perú SAC
Lucky Strike British American 18.4 16.6 14.0 16.7
Click&Roll (British Tobacco del Perú SAC
American Tobacco Plc)
Pall Mall Blue British American 12.5 13.2 16.1 15.4
(British American Tobacco del Perú SAC
Tobacco Plc)
Pall Mall Krystal British American 7.6 9.5 10.7 11.1
Frost (British Tobacco del Perú SAC
Click&Roll Fresh Tobacco del Perú SAC
(British American
Tobacco Plc)
Kent Silver British American - - - 8.4
Tobacco Plc)
Pall Mall Puerto British American 2.7 2.8 2.5 2.5
Rico (British Tobacco del Perú SAC
Pall Mall Red British American 2.3 2.4 2.2 2.3
Tobacco Plc)
Caribe (Philip Philip Morris Perú SA 2.9 3.3 2.3 2.1
Morris
International Inc)
L&M Blue (Philip Philip Morris Perú SA 0.5 0.9 1.8 1.7
Morris
International Inc)
Marlboro (Philip Philip Morris Perú SA 1.7 1.9 1.8 1.6
Morris
International Inc)
Marlboro Double Philip Morris Perú SA 0.2 1.0 1.3 1.2
Burst (Philip
Morris
International Inc)
Winston Red (Japan British American 0.1 1.1 1.0 0.9
Tobacco Inc) Tobacco del Perú SAC
Marlboro Kretek Philip Morris Perú SA 0.5 0.8 1.0 0.9
Mint (Philip Morris
International Inc)
Lucky Strike Blue British American 1.4 1.2 0.9 0.8
Tobacco Plc)
Premier (British British American 1.1 1.0 0.8 0.7
Winston Blue (Japan British American 1.9 0.8 0.8 0.7
Tobacco Inc) Tobacco del Perú SAC
Kent White 1 British American - - - 0.7
Tobacco Plc)
Marlboro Ruby Ice Philip Morris Perú SA 0.7 0.7 0.5 0.5
(Philip Morris
International Inc)
Original Red Tobacco del Perú SAC
(British American
Tobacco Plc)
Marlboro Gold Philip Morris Perú SA 1.3 0.9 0.5 0.4
Original (Philip
Morris
International Inc)
Nacional (British British American 1.0 0.8 0.6 0.4
Lucky Strike British American - 0.2 0.2 0.2
Original Silver Tobacco del Perú SAC
(British American
Tobacco Plc)
Marlboro Blue Ice Philip Morris Perú SA 1.2 0.1 0.0 0.0
(Philip Morris
International Inc)
Hamilton (British British American 19.9 17.6 15.4 -
Hamilton Fresh British American 8.8 7.3 6.3 -
Tobacco Plc)
Hamilton Fresh British American 1.1 0.7 0.5 -
Click (British Tobacco del Perú SAC
Inca (British British American 0.9 0.6 0.4 -
Winston Silver British American 0.0 - - -
(Japan Tobacco Inc) Tobacco del Perú SAC
L&M Cool Mint Philip Morris Perú SA - - - -
(Philip Morris
International Inc)
Others Others 1.4 0.8 3.1 1.8
Total Total 100.0 100.0 100.0 100.0
Table 12 Sales of Cigarettes by Distribution Format: % Volume 2014-2019
% retail volume
2014 2015 2016 2017 2018 2019
Store-Based Retailing 99.3 99.3 99.3 99.4 99.4 99.3

- Grocery Retailers 99.3 99.3 99.3 99.4 99.4 99.3
--- Convenience Stores - - 0.4 0.4 0.5 0.6
--- Discounters - - - - - -
--- Forecourt Retailers 4.2 4.2 4.1 4.6 4.6 5.3
--- Hypermarkets 1.6 1.6 1.6 1.6 1.6 1.6
--- Supermarkets 1.7 1.7 1.7 1.7 1.7 1.7
-- Food/drink/tobacco 3.2 3.2 3.0 3.0 2.9 0.0
specialists
--- Food/drink - - - - - -
specialists
--- Tobacco specialists 3.2 3.2 3.0 3.0 2.9 0.0
-- Independent Small 87.5 87.6 87.6 87.2 87.1 89.0
Grocers
-- Other Grocery 1.0 1.0 1.0 0.9 0.9 1.0
Retailers
--- Newsagent- 0.4 0.4 0.4 0.4 0.4 0.5
tobacconists/kiosks
--- Street vendors 0.6 0.5 0.5 0.5 0.5 0.6
- Mixed Retailers - - - - - -
-- Department Stores - - - - - -
-- Other Mixed Retailers - - - - - -
- Non-Grocery Specialists 0.0 - 0.0 0.0 - -
-- Drugstores/ - - - - - -
parapharmacies
-- Other Non-Grocery 0.0 - 0.0 0.0 - -
Specialists
Non-Store Retailing - - - - - -
- Vending - - - - - -
- E-Commerce - - - - - -
Non-retail channels 0.7 0.7 0.7 0.6 0.6 0.7
- Bar-tobacconists 0.7 0.7 0.7 0.6 0.6 0.7
- Hotels/restaurants/bars - - - - - -
Total 100.0 100.0 100.0 100.0 100.0 100.0
Table 13 Illicit Trade Estimate of Cigarettes: Volume 2014-2019
million sticks
2014 2015 2016 2017 2018 2019
Legal sales 2,392.4 2,319.0 2,245.7 1,916.5 1,834.3 1,595.1

Illicit trade 178.6 184.8 218.7 231.1 259.8 287.1
% penetration of 6.9 7.4 8.9 10.8 12.4 15.3
illicit trade
Actual consumption 2,571.0 2,503.7 2,464.4 2,147.5 2,094.1 1,882.2

Source: Euromonitor International from official statistics, trade associations, trade interviews
Table 14 Forecast Sales of Cigarettes: Volume 2019-2024
million sticks
2019 2020 2021 2022 2023 2024
Cigarettes 1,595.1 1,455.0 1,376.2 1,298.5 1,222.1 1,147.1

Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Table 15 Forecast Sales of Cigarettes by Category: Value 2019-2024
PEN million
2019 2020 2021 2022 2023 2024
Cigarettes Including 1,075.1 1,051.8 995.0 938.8 883.6 829.3

Fine Cut Stick Equivalent
Fine Cut Cigarettes - - - - - -
Cigarettes 1,075.1 1,051.8 995.0 938.8 883.6 829.3
trade sources
Table 16 Forecast Sales of Cigarettes: % Volume Growth 2019-2024
% volume growth
2019/20 2019-24 CAGR 2019/24 Total
Cigarettes -8.8 -6.4 -28.1

trade sources
Table 17 Forecast Sales of Cigarettes by Category: % Value Growth 2019-2024
% constant value growth

2019/2020 2019-24 CAGR 2019/24 Total
Cigarettes Including Fine Cut Stick -2.2 -5.1 -22.9

Equivalent
Fine Cut Cigarettes - - -
Cigarettes -2.2 -5.1 -22.9
trade sources
Table 18 Forecast Sales of Cigarettes by Blend: % Volume 2019-2024
% retail volume
2019 2020 2021 2022 2023 2024
American Blend 96.5 96.3 96.2 96.1 95.9 96.3
Virginia - - - - - -
Other Blend 3.5 3.7 3.8 3.9 4.1 3.7
Total 100.0 100.0 100.0 100.0 100.0 100.0
Table 19 Forecast Sales of Cigarettes by Standard/Menthol/Capsule: % Volume 2019-

2024
% retail volume
2019 2020 2021 2022 2023 2024
Standard (non-capsule/ 54.7 54.0 53.3 52.6 52.3 51.5

non-menthol)
Flavour Capsule (all 24.0 24.3 24.6 24.9 25.2 25.6
flavours)
Menthol (non-capsule) 21.3 21.7 22.1 22.5 22.5 22.9
Total 100.0 100.0 100.0 100.0 100.0 100.0
Table 20 Forecast Sales of Cigarettes by Regular/Slim/Superslim/Microslim: % Volume

2019-2024
% retail volume
2019 2020 2021 2022 2023 2024
Regular 100.0 100.0 100.0 100.0 100.0 100.0

Slim 0.0 0.0 0.0 0.0 0.0 0.0
Superslim - - - - - -
Microslim - - - - - -
Total 100.0 100.0 100.0 100.0 100.0 100.0
Table 21 Forecast Sales of Cigarettes by Pack Size: % Volume 2019-2024
% retail volume
2019 2020 2021 2022 2023 2024
< 20 60.4 62.2 64.0 65.9 67.8 70.2

20s 39.6 37.8 36.0 34.1 32.2 29.8
Total 100.0 100.0 100.0 100.0 100.0 100.0
Table 22 Forecast Sales of Cigarettes by Price Band: % Volume 2019-2024
% retail volume
2019 2020 2021 2022 2023 2024
Economy price band 2.7 2.8 2.8 2.9 3.0 3.1

Mid price band 33.0 29.1 27.2 24.2 20.3 16.7
Premium price band 64.3 68.1 70.0 72.9 76.7 80.2

Total 100.0 100.0 100.0 100.0 100.0 100.0

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Cigarettes in Peru

LIST OF CONTENTS AND TABLES

Kent brand takes category lead, Caribe suffers as Coltabaco closes

distribution strategy, transitioning from direct distribution to distribution through strategic

Further tax hike raises prices

2020 AND BEYOND

Recovery and opportunities

TAXATION AND PRICING

Summary 1 Taxation and Duty Levies 2014-2019

Ad % MSP 0.0 0.0 0.0 0.0 0.0 0.0

VAT/sale % of 15.3 15.3 15.3 15.3 15.3 15.3

Specific PEN per 0.1 0.1 0.2 0.2 0.3 0.3

Source: Euromonitor International

Average cigarette pack price breakdown

Summary 2 Average Cigarette Pack Price Breakdown: Brand Examples

Premium Mid Priced Economy

Lucky Kent Pall Mall

(Pack of (Pack of (Pack of

Wholesale 8.19 44.26 5.82 37.56 3.49 27.95

Retailer 1.09 5.90 0.91 5.90 0.70 5.60

TOTAL 9.28 50.16 6.74 43.46 4.19 33.55

Specific 6.40 34.59 6.40 41.29 6.40 51.20

Ad 0.00 0.00 0.00 0.00 0.00 0.00

VAT 2.82 15.25 2.36 15.25 1.91 15.25

TOTAL 9.22 49.84 8.76 56.54 8.31 66.45

End Price 18.50 100.00 15.50 100.00 12.50 100.00

Cigarettes 2,392.4 2,319.0 2,245.7 1,916.5 1,834.3 1,595.1

Table 2 Sales of Cigarettes by Category: Value 2014-2019

Cigarettes Including 851.0 882.9 1,112.0 1,034.9 1,236.3 1,075.1

Table 3 Sales of Cigarettes: % Volume Growth 2014-2019

Cigarettes -13.0 -7.8 -33.3

Table 4 Sales of Cigarettes by Category: % Value Growth 2014-2019

% current value growth

Cigarettes Including Fine Cut Stick -13.0 4.8 26.3

Table 5 Sales of Cigarettes by Blend: % Volume 2014-2019

American Blend 97.1 97.0 96.9 96.7 96.6 96.5

Table 6 Sales of Cigarettes by Standard/Menthol/Capsule: % Volume 2014-2019

Standard (non-capsule/ 58.2 57.5 56.8 56.1 55.4 54.7

Table 7 Sales of Cigarettes by Regular/Slim/Superslim/Microslim: % Volume 2014-2019

Regular 100.0 100.0 100.0 100.0 100.0 100.0

Table 8 Sales of Cigarettes by Pack Size: % Volume 2014-2019

< 20 54.7 55.0 55.3 57.4 58.6 60.4

Table 9 Sales of Cigarettes by Price Band: % Volume 2014-2019

Economy price band 8.1 7.9 5.0 4.7 3.4 2.7

Table 10 NBO Company Shares of Cigarettes: % Volume 2015-2019

British American 88.3 89.6 89.8 87.8 89.9

Table 11 LBN Brand Shares of Cigarettes: % Volume 2016-2019

Kent Blue (British British American - - - 18.3

Table 12 Sales of Cigarettes by Distribution Format: % Volume 2014-2019

Store-Based Retailing 99.3 99.3 99.3 99.4 99.4 99.3

Table 13 Illicit Trade Estimate of Cigarettes: Volume 2014-2019

Legal sales 2,392.4 2,319.0 2,245.7 1,916.5 1,834.3 1,595.1

Actual consumption 2,571.0 2,503.7 2,464.4 2,147.5 2,094.1 1,882.2

Table 14 Forecast Sales of Cigarettes: Volume 2019-2024

Cigarettes 1,595.1 1,455.0 1,376.2 1,298.5 1,222.1 1,147.1

Table 15 Forecast Sales of Cigarettes by Category: Value 2019-2024

Cigarettes Including 1,075.1 1,051.8 995.0 938.8 883.6 829.3

Table 16 Forecast Sales of Cigarettes: % Volume Growth 2019-2024

Cigarettes -8.8 -6.4 -28.1

Table 17 Forecast Sales of Cigarettes by Category: % Value Growth 2019-2024