The South African Tobacco Industry 2018
Price
R 1 900.00(ZAR) estimated $ 119.89 (USD)*
Report Coverage
The report on the South African tobacco industry describes current conditions and factors influencing the success of the industry, including government plans to further tighten legislation and the introduction of plain packaging. The negative effect of the severe drought and exceedingly hot temperatures in some areas as well as the continued illicit trafficking of cigarettes are also discussed. The report profiles 15 companies, including the three major players and smaller players such as Folha Manufacturers and Afroberg Tobacco Manufacturing. Also profiled is Gauteng-based Gold Leaf Tobacco Corporation which announced in 2017 that it planned to set up a US$1.5m plant in Harare, Zimbabwe within two years.
The South African Tobacco Industry
The South African tobacco industry is estimated to be worth R28.8bn and is supported by 8.2 million adult tobacco users. It is a significant contributor to the government purse, paying more than R16.6bn in excise duty and VAT in the 2016/2017 marketing season. The primary sector of the industry involves commercial and small-scale tobacco farmers situated in Limpopo, North West, Mpumalanga, Eastern Cape and Western Cape. The secondary sector focuses on the manufacture and marketing of cigarettes, pipe tobacco and snuff to the consumer. Limpopo Tobacco Processors is the biggest supplier of leaf and sells about 95% of its flue-cured tobacco to British American Tobacco, the main manufacturer in the sector.
Declining Sales
According to British American Tobacco South Africa, over the last five years company cigarette sales decreased from 22 billion to 15 billion sticks. This was the result of ‘downtrading’ to the low-priced segment of the market and higher illicit trade which remains a threat to both tobacco farmers and manufacturers. There was a 15% reduction in the domestic order for tobacco for the 2017/18 growing season and statistics from the Tobacco Institute of Southern Africa show that since 2012 tobacco manufacturers have bought 2,000 tons less tobacco leaf.
Table of Contents
| PAGE | ||
|---|---|---|
| 1. | INTRODUCTION | 1 |
| 2. | DESCRIPTION OF THE INDUSTRY | 1 |
| 2.1. | Industry Value Chain | 2 |
| 2.2. | Geographic Position | 4 |
| 3. | SIZE OF THE INDUSTRY | 5 |
| 4. | STATE OF THE INDUSTRY | 12 |
| 4.1. | Local | 12 |
| 4.1.1. | Corporate Actions | 15 |
| 4.1.2. | Regulations | 15 |
| 4.1.3. | Enterprise Development and Social Economic Development | 17 |
| 4.2. | Continental | 19 |
| 4.3. | International | 21 |
| 5. | INFLUENCING FACTORS | 24 |
| 5.1. | Economic Environment | 24 |
| 5.2. | Health Concerns | 25 |
| 5.3. | Proposals to Ban the Growing of Tobacco | 25 |
| 5.4. | Regulations | 26 |
| 5.5. | Illicit Trade | 27 |
| 5.6. | Technology, Research and Development (R&D) and Innovation | 28 |
| 5.7. | Labour | 30 |
| 5.8. | Environmental Concerns | 31 |
| 6. | COMPETITION | 33 |
| 6.1. | Barriers to Entry | 34 |
| 7. | SWOT ANALYSIS | 34 |
| 8. | OUTLOOK | 35 |
| 9. | INDUSTRY ASSOCIATIONS | 35 |
| 10. | REFERENCES | 36 |
| 10.1. | Publications | 36 |
| 10.2. | Websites | 36 |
| COMPANY PROFILES | 38 | |
| AFROBERG TOBACCO MANUFACTURING (PTY) LTD | 38 | |
| AMALGAMATED TOBACCO MANUFACTURING (PTY) LTD | 39 | |
| BEST TOBACCO COMPANY (PTY) LTD | 41 | |
| BRITISH AMERICAN TOBACCO SOUTH AFRICA (PTY) LTD | 42 | |
| CARNILINX (PTY) LTD | 45 | |
| FOLHA MANUFACTURERS (PTY) LTD | 47 | |
| GOLD LEAF TOBACCO CORPORATION (PTY) LTD | 48 | |
| HOME OF CUT RAG (PTY) LTD | 50 | |
| JT INTERNATIONAL SOUTH AFRICA (PTY) LTD | 51 | |
| LEONARD DINGLER (PTY) LTD | 53 | |
| LIMPOPO TOBACCO PROCESSORS (PTY) LTD | 55 | |
| OTP DISTRIBUTORS (PTY) LTD | 57 | |
| PHILIP MORRIS SOUTH AFRICA (PTY) LTD | 59 | |
| PROTOBAC (PTY) LTD | 61 | |
| UNIVERSAL LEAF SOUTH AFRICA (PTY) LTD | 62 | |
| VAN ERKOMS TABAKKE (PTY) LTD | 64 |
