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Ascending Taxes Lowering Profit Margins in Netherlands Tobacco Industry: Ken Research

Thursday, February 16, 2017 23:40
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(Before It's News)

Ken Research has announced its distribution on, “Smoking Tobacco in Netherlands, 2016” which provides extensive and highly detailed current and future market trends in the Netherlands market. The report offers market size and structure of the overall and per capita consumption based upon a unique combination of industry research, fieldwork, market sizing analysis, and our in-house expertise. The report well portrays the differing growth rates in regional product sales lead to fundamental shifts in the market. It also aids the user to comprehend the market dynamics and essential data to benchmark their position and further identify where to compete in the future.

The Dutch smoking tobacco market had emerged as a duopoly, with two major multinationals-Imperial Tobacco and BAT-dominating sales. After Germany, the Netherlands account for the second largest market for smoking tobacco in Europe and in per capita terms it is by far the largest market in Europe.

Production of smoking tobacco in the country is quite immense since it continues to be a major export base, and volumes are deviating year-to-year recently.  In the recent years, other suppliers and private label brands have escalated and Imperial Tobacco heads the market with its major strength in the tobacco market.

The factors that negatively impact the tobacco market are as follows:

  • Ascending taxes
  • Smoking bans
  • Increased health awareness
  • Smoking tobacco continued to fall in 2015 and even despite the shift from cigarettes to smoking tobacco, the category yet decreased by 4% in retail volume terms.
  • Imperial Tobacco Netherlands and Royal Theodorus Niemeyer BV continued to head the smoking tobacco in the Netherlands in 2015, reckoning for a combined retail volume share of 73%.
  • Consumption of smoking tobacco products is further forecasted to persist down falling due to the above mentioned factors as the demand is also expected to fall with effect to the circumstances to proceed in the future years.

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Ken Research

Ankur Gupta,

Head Marketing & Communications

+91-124- 4230204

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