PRODUCTS CONTACT US
x
Item added to your cart
The South African Tobacco and Tobacco Products Industry
BY Gary Phillips
South Africa
25 August 2021
R 14 400.00 (ZAR)  
estimated $ 987.71 (USD) *
Buy Now

The South African Tobacco and Tobacco Products Industry


After more than a decade of pressure from increasing government tobacco controls, a growing illicit cigarette economy and changing consumer attitudes towards smoking, South Africa’s Tobacco industry was subjected to a twenty-week prohibition on the sale of all raw tobacco leaf, processed tobacco and all manufactured tobacco products under lockdown measures. This led to the industry losing significant market share to illicit cigarette sales. The industry also faced an 8% increase in excise duties and announcements of renewed government efforts to finalise further tobacco controls.


E-cigarettes


The e-cigarette industry is estimated to be growing at a compound annual rate that is more than double that of traditional cigarettes, cigars and roll-your-own tobacco. But the industry is very small compared to manufactured tobacco products. As all hardware devices, replacement parts and components and most of the e-liquids are imported, future growth will largely be in distribution, wholesale and retail. The industry has mostly developed through specialist stalls or mall kiosks although vaping products are also sold in supermarkets.


Tobacco Controls


Tobacco is highly controlled through price and non-price controls. The Control of Tobacco Products and Electronic Delivery Systems Bill, drafted in 2018 but not yet enacted, proposes stringent controls including the removal of all signage and logos on cigarette packaging aside from the brand name and warning stickers, and that cigarettes may no longer be displayed by retailers. The proposed new controls also include regulating and taxing e-cigarettes for the first time in South Africa.


Report Coverage


This report focuses on the South African tobacco and tobacco products industry and contains comprehensive information on the state and size of the sector, trade, corporate actions and regulations. It includes information on the major players in manufacture and retail, the rapidly-growing illicit market, e-cigarettes and health and environmental concerns. There are profiles of 24 companies including major players such as British American Tobacco, JT International and Philip Morris, e-cigarette companies such as Vape Manufacturing and Distribution and Limpopo Tobacco Processors, South Africa’s only green leaf processor.


Page
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 2
2.1. Industry Value Chain 4
2.2. Geographic Position 8
3. SIZE OF THE INDUSTRY 9
4. STATE OF THE INDUSTRY 16
4.1. Local 16
4.1.1. British American Tobacco South Africa 17
4.1.2. Tobacco Control and Regulations 20
4.1.3. Trade 24
4.1.4. Corporate Actions 34
4.1.5. Enterprise Development and Social Economic Development 35
4.2. Continental 36
4.3. International 40
5. INFLUENCING FACTORS 47
5.1. Coronavirus 47
5.2. Economic Environment 49
5.3. The Growth of the Illicit Market 51
5.4. Technology, Research and Development (R&D) and Innovation 55
5.5. Health and Environmental Concerns 57
5.6. Labour 58
6. COMPETITION 63
6.1. Barriers to Entry 64
7. SWOT ANALYSIS 64
8. OUTLOOK 65
9. INDUSTRY ASSOCIATIONS 66
10. REFERENCES 66
10.1. Publications 66
10.2. Websites 69
APPENDIX 1 70
Summary Of Notable Players 70
ORGANOGRAM – MANUFACTURE OF TOBACCO PRODUCTS 75
ORGANOGRAM – WHOLESALE TRADE IN TOBACCO PRODUCTS 77
COMPANY PROFILES 79
AFROBERG TOBACCO MANUFACTURING (PTY) LTD 79
AMALGAMATED TOBACCO MANUFACTURING (PTY) LTD 80
BEST TOBACCO COMPANY (PTY) LTD 82
BRITISH AMERICAN TOBACCO SOUTH AFRICA (PTY) LTD 83
CARNILINX (PTY) LTD 86
FLUE CURED TOBACCO RESEARCH COMPANY (RF) NPC 88
FOLHA MANUFACTURERS (PTY) LTD 89
GOLD LEAF TOBACCO CORPORATION (PTY) LTD 90
HOME OF CUT RAG (PTY) LTD 92
IMPTOB SOUTH AFRICA (PTY) LTD 94
JT INTERNATIONAL SOUTH AFRICA (PTY) LTD 95
LEONARD DINGLER (PTY) LTD 97
LIMPOPO TOBACCO PROCESSORS (PTY) LTD 99
LOWVELD AGRI RESEARCH AND SUPPORT SERVICES (PTY) LTD 101
OTP DISTRIBUTORS (PTY) LTD 102
PACIFIC CIGARETTE COMPANY (PTY) LTD (THE) 104
PHILIP MORRIS SOUTH AFRICA (PTY) LTD 106
TOBACCO PRODUCER DEVELOPMENT (PTY) LTD 108
TWISP (PTY) LTD 109
UNIVERSAL LEAF SOUTH AFRICA (PTY) LTD 110
VAN ERKOMS TABAKKE (PTY) LTD 111
VAPE AFRICA (PTY) LTD 113
VAPE MANUFACTURING AND DISTRIBUTION (PTY) LTD 115
VAPERITE (PTY) LTD 117