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Tobacco Product Wholesaling in Australia - Market Research Report (2014-2029)

Matt Reeves Matt Reeves Melbourne, Australia Last Updated: October 2024 ANZSIC F3606b

Revenue

$1.5bn

2024-25

$1.5bn

Past 5-Year Growth

Profit

$XXX.Xm

Employees

1,801

Businesses

63

Wages

$XXX.Xm

Tobacco Product Wholesaling in Australia industry analysis

Tobacco product wholesalers have faced declining consumer demand and rising prices over the past few years. Revenue has fallen, as rising prices and growing health consciousness have put downwards pressure on smoking rates. The closure of downstream duty-free retailers for extended periods over the three years through 2021-22, due to pandemic travel restrictions, exacerbated revenue falls. Overall, revenue is expected to decrease at an annualised 16.4% over the five years through 2024-25, to total $1.5 billion. This includes an anticipated decline of 18.4% in the current year, due to falling smoking rates and competition from vapes and illicit tobacco products.

Trends and Insights

  • Rising health awareness and stringent government regulations have resulted in a significant decline in tobacco product sales in Australia. Factors like anti-smoking campaigns and the rise of alternatives like ecigarettes and illicit tobacco have also led to this downwards trend.
  • Roll-your-own cigarettes have risen as a share of revenue over the past five years. With excise tax rates skyrocketing, smokers are turning to less costly options.
  • Most tobacco product wholesalers in Australia are located in New South Wales and Victoria. These states have the majority of Australia's population, so these areas account for around two-thirds of the country’s tobacco product wholesalers.
  • Three of the four largest tobacco manufacturers in the world also dominate the Australian market. These companies own the most prominent brands, with established brand loyalty keeping them on top.

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  • Market estimates from 2014-2029
  • Critical performance data and rankings
  • Detailed analysis of competitive forces and the external environment
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Industry Statistics and Trends

Market size and recent performance (2014-2029)

Industry revenue has declined at a CAGR of 16.4 % over the past five years, to reach an estimated $1.5bn in 2024.

Trends and Insights

Tobacco sales are still plunging as Australians become more aware of the risks

  • A decline in smoking rates due to increasing health awareness and anti-smoking campaigns has significantly diminished tobacco product sales.
  • Additional trends and insights available with purchase
Tobacco Product Wholesaling in Australia
Revenue (2014-2029)
IBISWorld Logo Source: IBISWorld

Industry outlook (2024-2029)

Market size is projected to decline over the next five years.

Trends and Insights

Smoking rates are set to decline due to health concerns and a rising threat from substitutes

  • Going forwards, the proportion of daily smokers is projected to continue a long-term decline. Meanwhile, the proportion of people that’ve never smoked or have quit smoking is projected to increase.

Biggest companies in the Tobacco Product Wholesaling in Australia

Company
Market Share (%)
2025
Revenue ($m)
2025
British American Tobacco Australia
602.9
Imperial Tobacco Australia
370.4
Philip Morris
312.5

To view the market share and analysis for all 3 top companies in this industry, view purchase options.

Products & Services Segmentation

Tobacco Product Wholesaling in Australia
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Value cigarettes, Mainstream cigarettes and Premium cigarettes. Value cigarettes is the largest segment of the Tobacco Product Wholesaling in Australia.

Trends and Insights

Consumers are turning to lower priced value cigarettes as surging excise rates hike prices

  • Value cigarettes are the largest product segment in the industry. Value cigarettes are generally less costly than other types of smoking tobacco, which boosts consumption.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

Industry operators wholesale cigarettes, cigars and other tobacco products. The industry excludes wholesaling of leaf tobacco.

What's included in this industry?

Value cigarettesMainstream cigarettesRoll-your-own cigarettesPremium cigarettesCigar wholesalingLoose pipe tobacco wholesaling

Companies

British American Tobacco AustraliaImperial Tobacco AustraliaPhilip Morris

Purchase this report to view all 3 major companies in this industry.

Related Terms

ROLLIESSNUFFCIGARILLOSECIGARETTE

Industry Code

ANZSIC 2006

ANZSIC 3606 - Tobacco Product Wholesaling in Australia

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

Rising health awareness and stringent government regulations have resulted in a significant decline in tobacco product sales in Australia. Factors like anti-smoking campaigns...

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2014-2023) and forecast (2024-2029)
  • Employees, including historical (2014-2023) and forecast (2024-2029)
  • Businesses, including historical (2014-2023) and forecast (2024-2029)
  • Profit, including historical (2014-2024)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Key success factors for businesses to overcome volatility
  • How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

Roll-your-own cigarettes have risen as a share of revenue over the past five years. With excise tax rates skyrocketing, smokers are turning to less costly options.

In this chapter

  • Products & Services
  • Major Markets

Key metrics

  • Largest market segment and value in 2024
  • Product innovation level

Charts

  • Products & services segmentation in 2024
  • Major market segmentation in 2024

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

Most tobacco product wholesalers in Australia are located in New South Wales and Victoria. These states have the majority of Australia's population, so these areas account fo...

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each region
  • Share of population compared to establishments in each region in 2024

Tables

  • Number and share of establishments in each region in 2024
  • Number and share of revenue each region accounts for in 2024
  • Number and share of wages each region accounts for in 2024
  • Number and share of employees in each region in 2024

Detailed analysis

  • Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

Three of the four largest tobacco manufacturers in the world also dominate the Australian market. These companies own the most prominent brands, with established brand loyalt...

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2019-2024
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

Detailed analysis

  • Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
  • Key success factors for businesses to manage the competitive environment of the industry.
  • Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
  • Key success factors for potential entrants to overcome barriers to entry.
  • Competitive threats from potential substitutes for the industry’s own products and services.
  • Key success factors for how successful businesses can compete with substitutes.
  • Advantages that buyers have to keep favorable purchasing conditions.
  • Advantages that suppliers have to maintain favorable selling conditions.
  • Key success factors for how businesses can navigate buyer and supplier power.

Companies

Learn about the performance of the top companies in the industry.

Analyst insights

British American Tobacco, Philip Morris and Imperial Tobacco dominate the Australian tobacco product market. These firms control the major brands, with brand loyalty an impor...

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2020 through 2024
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2024
  • Overview of British American Tobacco Australia's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of Imperial Tobacco Australia's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of Philip Morris's performance by revenue, market share and profit margin from 2018 through 2024

Detailed analysis

  • Description and key data for British American Tobacco Australia, and factors influencing its performance in the industry
  • Description and key data for Imperial Tobacco Australia, and factors influencing its performance in the industry
  • Description and key data for Philip Morris, and factors influencing its performance in the industry

External Environment

Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

Analyst insights

Tobacconists and duty-free stores play a crucial role in the Tobacco Product Wholesaling industry due to their unique ability to display tobacco products. Growing demand from...

In this chapter

  • External Drivers
  • Regulation & Policy
  • Assistance

Key metrics

  • Regulation & policy level and trend
  • Assistance level and trend

Charts

  • Regulation & Policy historical data and forecast (2014-2029) 
  • Assistance historical data and forecast (2014-2029) 

Detailed analysis

  • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
  • Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
  • Key governmental and non-governmental groups or policies that may provide some relief for industry operators.

Financial Benchmarks

View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

Analyst insights

Falling demand has contributed to declining profit margins on average. However, the major companies have a strong hold on the industry, keeping average margins high.

In this chapter

  • Cost Structure
  • Financial Ratios
  • Key Ratios

Key metrics

  • Profit margin, and how it compares to the sector-wide margin
  • Average wages, and how it compares to the sector-wide average wage
  • Largest cost component as a percentage of revenue
  • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

Charts

  • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Investment vs. share of economy

Data tables

  • Cash Flow & Debt Service Ratios (2014-2029)
  • Revenue per Employee (2014-2029)
  • Revenue per Enterprise (2014-2029)
  • Employees per Establishment (2014-2029)
  • Employees per Enterprise (2014-2029)
  • Average Wage (2014-2029)
  • Wages/Revenue (2014-2029)
  • Establishments per Enterprise (2014-2029)
  • IVA/Revenue (2014-2029)
  • Imports/Demand (2014-2029)
  • Exports/Revenue (2014-2029)

Detailed analysis

  • Trends in the cost component for industry operators and their impact on industry costs and profitability 

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2014-2029)
  • IVA (2014-2029)
  • Establishments (2014-2029)
  • Enterprises (2014-2029)
  • Employment (2014-2029)
  • Exports (2014-2029)
  • Imports (2014-2029)
  • Wages (2014-2029)

Top Questions Answered

Unlock comprehensive answers and precise data upon purchase. View purchase options.

What is the market size of the Tobacco Product Wholesaling industry in Australia in 2024?

The market size of the Tobacco Product Wholesaling industry in Australia is $1.5bn in 2024.

How many businesses are there in the Tobacco Product Wholesaling in Australia industry in 2024?

There are 63 businesses in the Tobacco Product Wholesaling industry in Australia, which has declined at a CAGR of 0.0 % between 2019 and 2024.

Has the Tobacco Product Wholesaling industry in Australia grown or declined over the past 5 years?

The market size of the Tobacco Product Wholesaling industry in Australia has been declining at a CAGR of 16.4 % between 2019 and 2024.

What is the forecast growth of the Tobacco Product Wholesaling industry in Australia over the next 5 years?

Over the next five years, the Tobacco Product Wholesaling industry in Australia is expected to decline.

What are the biggest companies in the Tobacco Product Wholesaling market in Australia?

The biggest companies operating in the Tobacco Product Wholesaling market in Australia are British American Tobacco Australia, Imperial Tobacco Australia and Philip Morris

What does the Tobacco Product Wholesaling in Australia include?

Value cigarettes and Mainstream cigarettes are part of the Tobacco Product Wholesaling industry.

Which companies have the highest market share in the Tobacco Product Wholesaling in Australia?

The company holding the most market share in Australia is British American Tobacco Australia.

How competitive is the Tobacco Product Wholesaling industry in Australia?

The level of competition is high and increasing in the Tobacco Product Wholesaling industry in Australia.

Related Industries

Widen your competitive advantage with related industries

Competitors

  • General Line Grocery Wholesaling in Australia

Complementors

  • Liquor Wholesaling in Australia
  • Supermarkets and Grocery Stores in Australia
  • Tobacco and Other Store-Based Retailing in Australia

International industries

  • Cigarette & Tobacco Products Wholesaling in the US
  • Cigarette & Tobacco Product Wholesaling in Canada
  • Liquor and Tobacco Product Wholesaling in New Zealand
  • Tobacco Product Wholesaling in the UK
  • Food, Beverage & Tobacco Wholesaling in Ireland

View all industries in Australia

Methodology

How are IBISWorld reports created?

IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.

Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.

IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.

What data sources do IBISWorld analysts use?

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

Key data sources in Australia include:

  • Australian Bureau of Statistics
  • Australian Taxation Office
  • Australian Securities & Investments Commission

Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

These sources include:

  • Industry and trade associations
  • Industry federations or regulators
  • Major industry players annual or quarterly filings

Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

How does IBISWorld forecast its data?

IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.

IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.

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