Tobacco in 2024: The big picture
Amid New Zealand’s strategy to achieve a smoke-free nation by 2025, the smoking rate in the country has continued to decline. Public health campaigns, higher tobacco taxes, and smoking bans in public places have contributed to this. Smoking has a more negative image, especially among younger generations, who are increasingly health conscious. This trend has prompted many tobacco companies to pivot towards alternative products, such as heated tobacco and e-cigarettes, to capture a share of non-combustible nicotine sales.
2024 key trends
Volume sales of tobacco declined again in 2024, but rose slightly in current value terms.
Competitive landscape
The competitive dynamics within tobacco in New Zealand remained relatively stable in 2024. With the traditional tobacco categories of cigarettes and cigars, cigarillos and smoking tobacco experiencing little innovation due to the tight marketing and advertising laws that regulate these categories, e-vapour products and heated tobacco were among the more dynamic subcategories, with e-vapour heavily segmented. Nonetheless, the major multinational players continue to dominate the tobacco industry overall. British American Tobacco (New Zealand) Ltd, Imperial Tobacco New Zealand Ltd, and Philip Morris (New Zealand) Ltd sustained their significant shares, particularly in the cigarette segment. British American Tobacco held the top spot in retail volume sales, a position it has maintained for years, with Imperial Tobacco and Philip Morris following. Demand for cigars and cigarillos saw Philip Morris lead ahead of Scandinavian Tobacco Group A/S, as the former appealed to price-conscious consumers, whereas STG focuses on premium options. In fine cut tobacco, British American Tobacco remained the clear leader, with Imperial Tobacco as a key competitor. Overall, the competitive dynamics remained unchanged, with these established players maintaining control over both the volume and various product categories within tobacco.
Retail developments
In 2024, the leading distribution channel for tobacco in New Zealand was supermarkets, followed by convenience stores. These retailers play a significant role in tobacco sales, making cigarettes easily accessible to a wide range of consumers. Forecourt retailers, often with 24-hour availability, also serve as key points of distribution. In addition, licensed premises provide a steady stream of tobacco products. These outlets are supported by a network of wholesalers who supply a variety of retailers, ensuring widespread availability across urban and rural areas. This well-established distribution system ensures that cigarettes remain accessible to local consumers, despite ongoing regulatory changes and the industry's efforts to transition toward reduced-risk alternatives.
What next for tobacco?
Overall sales of tobacco are set to rise over the forecast period in volume and current value terms. Cigarettes and cigars, cigarillos and smoking tobacco are all expected to continue their volume decline as more smokers transition to e-vapour products, which are perceived as healthier alternatives and will be the main driver of growth over the forecast period.
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Overview:
Understand the latest market trends and future growth opportunities for the Tobacco industry in New Zealand with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
Data and analysis in this report provides further detailed coverage dedicated to the following key categories, where applicable:
- Cigarettes
- Cigars, Cigarillos and Smoking Tobacco
- Smokeless Tobacco, E-Vapour Products and Heated Tobacco
If you're in the Tobacco industry in New Zealand, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
The Tobacco in New Zealand report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volume and value sizes, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent research methodology, conducted in-country
This report answers:
- What is the market size of Tobacco in New Zealand?
- Which are the leading brands in Tobacco in New Zealand?
- How are products distributed in Tobacco in New Zealand?
- Which category is the most heavily taxed in New Zealand?
- How is the operating environment for Tobacco changing?
- What are the current legislative restrictions applicable to the sale of Tobacco products in New Zealand?
- How has COVID-19 impacted demand?
- How have national lockdown and enforced home seclusion following COVID-19 impacted sales?
- Where is future growth expected to be most dynamic?
Tobacco in New Zealand
Tobacco in 2024: The big picture
2024 key trends
Competitive landscape
Retail developments
What next for tobacco?
Legislation
Legislative overview
Minimum legal smoking age
Smoking prevalence
Tar levels
Health warnings
Plain packaging
Advertising and sponsorship
Point-of-sale display bans
Smoking in public places
Low ignition propensity (LIP) cigarette regulation
Flavoured tobacco product ban
Vapour products
PRODUCTION/IMPORTS/EXPORTS
DISCLAIMER
Cigarettes in New Zealand
KEY DATA FINDINGS
Cost-of-living pressures and health concerns see cigarette sales fall
BAT continues to lead cigarettes in 2024
Supermarkets remains the leading channel for cigarettes
Cigarette volume sales predicted to continue declining
New Zealand authorities set to continue clamping down on illicit cigarettes
Cultural and social shifts will drive more consumers away from cigarettes
Taxation rates
Average cigarette pack price breakdown
Cigars, Cigarillos and Smoking Tobacco in New Zealand
KEY DATA FINDINGS
Volume decline across cigars, cigarillos and smoking tobacco due to cost-of-living pressures and health concerns
Philip Morris leads cigars and cigarillos in 2024
Differentiated channel dynamics across cigars, cigarillos and smoking tobacco
Volume growth set to continue declining over forecast period
Regulatory settings to impact the category, albeit less severely than cigarettes
Economic recovery could provide opportunities for cigars and cigarillos
Smokeless Tobacco, E-Vapour Products and Heated Tobacco in New Zealand
KEY DATA FINDINGS
Strong category growth despite single-use vape ban
Competitive landscape remains highly fragmented despite focus from traditional tobacco players
Other non-grocery retailers remains the leading distribution channel in 2024
Despite increased regulatory focus, strong category growth is expected to continue
Disposable vapes ban will see sales flow to other vape subcategories
Regulatory-compliant IQOS set to be launched in 2025
The following categories and subcategories are included:
Tobacco
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- Fine Cut Cigarettes
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- Cigarettes (Illicit+Legal)
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- Cigars
- Cigarillos
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- Pipe Tobacco
- Fine Cut Tobacco
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- Chewing Tobacco
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- Loose US-Style Moist Snuff
- Portion US-Style Moist Snuff
- Swedish-Style Snus
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- Closed System Single Use
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- Closed System Rechargeable (including starter kits)
- Closed System Cartridges
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- Open Vaping Systems Charging and Vapourising Devices
- E-liquids
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- Tobacco Heating Devices
- Heated Tobacco
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- Nicotine Pouches
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- Closed System Single Use (Illicit+Legal)
- Closed System Cartridges (Illicit+Legal)
- E-Liquids (Illicit+Legal)
Tobacco
Passport Tobacco covers the seven major tobacco categories: Cigarettes, Cigars & Cigarillos, Smoking tobacco (made up of Pipe tobacco and RYO tobacco), Smokeless Tobacco (snuff and chewing tobacco), E-Vapour Products (closed and open); Heated Tobacco; and Tobacco Free Oral Nicotine. Smoking paraphernalia such as pipes, rolling papers, lighters or matches, etc., are not included, nor are nicotine replacement therapy (NRT) products, which are part of Euromonitor's Passport Consumer Healthcare database.
See all of our definitionsWhy buy this report?
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This report originates from Passport, our Tobacco research and analysis database.
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