Tobacco in Singapore saw a retail volume decline in 2023, although current value sales increased. Retail volume sales of cigarettes continued to decrease, with mid-priced cigarettes suffering the most significant fall in sales.
Price increases in 2023 negatively impacted sales of cigarettes in particular, and were due to a number of reasons. First, while the annual inflation rate slowed down slightly in 2023 compared with its peak in 2022, it remained significantly elevated, which drove price rises.
Cigarettes in Singapore continued to be led by three multinational players in volume terms in 2023 – Philip Morris Singapore Pte Ltd, JT International (Singapore) Pte Ltd, and British American Tobacco (Singapore) Pte Ltd. Together, these players accounted for the vast majority of sales, benefiting from their wide distribution across various channels and large consumer reach.
The retail volume share of the hospitality (on-trade) distribution channel in cigarettes, and cigars and cigarillos saw another year of growth in 2023. This was driven by the rebound of inbound tourists, which approximately doubled in 2023 compared with 2022.
Tobacco in Singapore is set to maintain its declining retail volume trend in the forecast period, and also turn to decline in current value terms. Budget-consciousness is expected to continue to rise amongst consumers, especially with the further GST hike in 2024 to 9%.
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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 DefinitionsThis report originates from Passport, our Tobacco research and analysis database.
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