|Market Research A to Z | Company Profiles A to Z | Register | Contact Us|
|+44 (0) 203 086 8600 Call us on|
The US cigarette market saw a 4% increase in the unit price of cigarettes (31% over the last three years) to help boost value sales in 2011.
Value sales grew by 1% in current terms, reaching US$90,421 million, as all three of the major manufacturers increased the price of a pack of cigarettes in early 2010 and late 2011.
However, volume sales within the US cigarette market continued to decline in 2011, registering a 3% drop. This continued the downward trend seen in 2009, when volumes decreased by 9%, due to historic increases in tobacco taxation.
The US cigarette industry is highly consolidated, with the top three players accounting for a combined volume share of 86% in 2011. Philip Morris was the clear leader with a category volume share of 46%, followed by RJ Reynolds with 27% and Lorillard with 13%.
It has been argued that FDA regulation and increased federal restrictions have given Philip Morris a competitive advantage as the company has the largest marketing and advertising budget in the industry.
US cigarette market value sales are forecast to grow at a compound annual growth rate (CAGR) of 2% between 2011 and 2016, reaching US$98 billion at constant 2011 prices.
Volume sales of cigarettes are expected to continue to decline through 2016 by an annual average of 1%.
Cigarettes have historically been dubbed "recession proof", or at least "recession-resistant", as a portion of the population is expected to continue smoking regardless of the cost or the economic outlook.
For more information on the US cigarette market, see the latest research: US Cigarette Market Report
Follow us on Twitter @CandMResearch
Free Research Support: Let us do the work for you and find information from public and private sources of information. Contact us now and we can save you time and money.......Free Research Support
eBrandPromote: Let us promote your brand online through article writing, press release distribution, social media and search engine marketing services. Click here to download our eBrandPromote brochure.