New Study: Cigars in South Africa

The illicit cigar trade continues to have a big impact on legal cigar sales in South Africa. Rising excise duty and taxes on an annual basis continually push up the unit prices of cigars and cigarillos in South Africa. Individuals are travelling overseas to countries such as Dubai and bringing in suitcases of cigars containing 2,000-3,000 sticks. They obtain receipts from duty free outlets at international airports such as Dubai. Because these cigars retail at much lower prices, the receipts for them are at a much lower value than they would be in South Africa. When these consumers enter South Africa they declare the goods at this lower value and do not specify that they are cigars, and they therefore pay far less import tax than they should legally pay. These cigars are sold at a far lower price than legal cigars.

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Competitive Landscape

Clippa Sales Pty Ltd remained the leading distributor of cigars in South Africa in 2014 with a volume share of 63%. The Cigar Co Pty Ltd came in second with a share of 22%, followed by OTP Distributors (Pty) Ltd with a share of 6%. Swisher BlackStone and Ritmeester were the biggest brands, holding respective volume shares of 36% and 24%. Both are supplied by Clippa Sales and are cigarillo brands, with cigarillos accounting for the bulk (78%) of total cigar volumes in South Africa.

Industry Prospects

Cigars in South Africa is supported by a smaller group of smokers in relation to the total number of smokers. These consumers tend to be fairly loyal; however, cigar smoking tends to be occasion-based rather than a frequent occurrence as when smoking cigarettes. Thus it is difficult to increase the consumer group using cigars, thereby growing the market. This, in conjunction with the increasing presence of illicit cigars in South Africa, will mean that the number of cigar consumers will continue to decline over the forecast period.

Report Overview

Discover the latest market trends and uncover sources of future market growth for the Cigars industry in South Africa with research from Euromonitor's team of in-country analysts.

Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.

If you're in the Cigars industry in South Africa, our research will save you time and money while empowering you to make informed, profitable decisions.

The Cigars in South Africa market research report includes:

* Analysis of key supply-side and demand trends
* Detailed segmentation of international and local products
* Historic volumes and values, company and brand market shares
* Five year forecasts of market trends and market growth  

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