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    The Tobacco Industry in South Africa 2021

    Gary Phillips | South Africa | 25 August 2021

    The Tobacco Industry in South Africa 2019

    Nina Shand | South Africa | 05 July 2019

    The Tobacco Industry in South Africa 2018

    Nina Shand | South Africa | 26 March 2018

    The Tobacco Industry in South Africa 2015

    Juliet Gebbie | South Africa | 10 November 2015

    Report Info

    Report Summary Table of Contents
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    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.

    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.

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    The Tobacco Industry in South Africa 2021

    Full Report

    R 6 500.00(ZAR) estimated $343.74 (USD)*

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    Industry Overview

    R 4 550.00(ZAR) estimated $ 240.62 (USD)*

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    Industry Organograms

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    Historical Reports

    The Tobacco Industry in South Africa 2019-07-05

    R 1 900.00(ZAR) estimated $100.48 (USD)*

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    The Tobacco Industry in South Africa 2018-03-26

    R 1 900.00(ZAR) estimated $100.48 (USD)*

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    The Tobacco Industry in South Africa 2015-11-10

    R 1 900.00(ZAR) estimated $100.48 (USD)*

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    Table of Contents

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    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

    Report Coverage

    This report covers the tobacco manufacturing industry, including the size and state of the industry and the factors that influence it. These include detailed descriptions of proposed legislation, the illicit tobacco trade and the e-cigarette market. There are profiles of 16 companies including British American Tobacco South Africa which is estimated to hold 74% of the legal market and 22 out of around 30 brands. There are also profiles of Philip Morris, with leading brands Marlboro and Chesterfield, and its subsidiary Leonard Dingler, which manufactures products such as pipe tobacco and snuff. Other profiles include Limpopo Tobacco Processors, the biggest single supplier of tobacco leaves to local buyers.

    The Tobacco Industry

    The tobacco manufacturing industry in South Africa, that is estimated to be worth close to R30bn and supported by nearly 8 million adult tobacco users, continues to be seriously affected by the rampant growth in illicit cigarettes. The number of legally-declared cigarettes declined more than 20% between 2013 and 2018, while industry sources say the illegal trade grew to 33% of the total market in 2018. The industry contributed R10.9bn in excise duty to the fiscus in 2017/2018, a decline of nearly R2bn from 2015/16, despite increased taxes.

    Multiple Challenges

    The rampant illicit trade in cigarettes is blamed for the reduction in cigarette sales volumes of multinational tobacco companies and lower leaf orders to the estimated 176 commercial tobacco farmers and 155 small-scale farmers. At the same time, the e-cigarette market is estimated to have grown to be worth R1bn, but faces regulation in the form of the proposed Control of Tobacco Products and Electronic Delivery Systems Bill. Another key issue facing the industry is government’s plan to further tighten legislation on smoking and the introduction of plain packaging. Health concerns associated with tobacco are expected to continue to affect consumption.

    Read More..
    The Tobacco Industry in South Africa 2019

    Full Report

    R 1 900.00(ZAR) estimated $100.48 (USD)*

    Buy Now +

    Industry Overview

    R 1 330.00(ZAR) estimated $ 70.34 (USD)*

    Buy Now +

    Historical Reports

    The Tobacco Industry in South Africa 2021-08-25

    R 6 500.00(ZAR) estimated $343.74 (USD)*

    View Report Add to Cart

    The Tobacco Industry in South Africa 2018-03-26

    R 1 900.00(ZAR) estimated $100.48 (USD)*

    View Report Add to Cart

    The Tobacco Industry in South Africa 2015-11-10

    R 1 900.00(ZAR) estimated $100.48 (USD)*

    View Report Add to Cart

    Table of Contents

    [ Close ]
    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 8
    4.1. Local 8
    4.1.1. Corporate Actions 11
    4.1.2. Regulations 12
    4.1.3. Enterprise Development and Social Economic Development 14
    4.2. Continental 16
    4.3. International 19
    5. INFLUENCING FACTORS 23
    5.1. Economic Environment 23
    5.2. Health Concerns 24
    5.3. Proposals to Ban the Growing of Tobacco 25
    5.4. Regulations 25
    5.5. Illicit Trade 26
    5.6. Technology, Research and Development (R&D) and Innovation 28
    5.7. Labour 30
    5.8. Environmental Concerns 32
    6. COMPETITION 33
    6.1. Barriers to Entry 34
    7. SWOT ANALYSIS 35
    8. OUTLOOK 36
    9. INDUSTRY ASSOCIATIONS 36
    10. REFERENCES 36
    10.1. Publications 36
    10.2. Websites 37
    APPENDIX 1 39
    Summary of Notable Players 39
    COMPANY PROFILES 44
    AFROBERG TOBACCO MANUFACTURING (PTY) LTD 44
    AMALGAMATED TOBACCO MANUFACTURING (PTY) LTD 45
    BEST TOBACCO COMPANY (PTY) LTD 47
    BRITISH AMERICAN TOBACCO SOUTH AFRICA (PTY) LTD 48
    CARNILINX (PTY) LTD 51
    FOLHA MANUFACTURERS (PTY) LTD 53
    GOLD LEAF TOBACCO CORPORATION (PTY) LTD 54
    HOME OF CUT RAG (PTY) LTD 56
    JT INTERNATIONAL SOUTH AFRICA (PTY) LTD 58
    LEONARD DINGLER (PTY) LTD 60
    LIMPOPO TOBACCO PROCESSORS (PTY) LTD 62
    OTP DISTRIBUTORS (PTY) LTD 64
    PHILIP MORRIS SOUTH AFRICA (PTY) LTD 66
    PROTOBAC (PTY) LTD 68
    UNIVERSAL LEAF SOUTH AFRICA (PTY) LTD 69
    VAN ERKOMS TABAKKE (PTY) LTD 71

    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.

    Read More..
    The Tobacco Industry in South Africa 2018

    Full Report

    R 1 900.00(ZAR) estimated $100.48 (USD)*

    Buy Now +

    Industry Overview

    R 1 330.00(ZAR) estimated $ 70.34 (USD)*

    Buy Now +

    Historical Reports

    The Tobacco Industry in South Africa 2021-08-25

    R 6 500.00(ZAR) estimated $343.74 (USD)*

    View Report Add to Cart

    The Tobacco Industry in South Africa 2019-07-05

    R 1 900.00(ZAR) estimated $100.48 (USD)*

    View Report Add to Cart

    The Tobacco Industry in South Africa 2015-11-10

    R 1 900.00(ZAR) estimated $100.48 (USD)*

    View Report Add to Cart

    Table of Contents

    [ Close ]
    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

    Report Coverage

    The report on the South African tobacco industry describes the current market and developments in the e-cigarette sector and focuses on factors influencing the success of the industry. The report profiles ten companies, including the dominant British American Tobacco, which manufactures 27 billion cigarettes per annum for the domestic and international markets and has a local market share of approximately 85%. Also profiled is local company, Carnilinx (Pty) Ltd t/a CTC, which manufactures a number of less expensive brands, and Philip Morris South Africa (Pty) Ltd, importer of well-known brands, Chesterfield and Marlboro.

    The South African Tobacco Industry

    This report focuses on the South African tobacco industry, which is valued at R29bn and contributes more than R12bn in excise duty and VAT per annum. Although there are still an estimated 186 commercial tobacco farmers in South Africa, both the area under tobacco cultivation and tobacco production have dropped markedly since the turn of the century. The substantial decline in domestic production of tobacco has led to rising imports of leaf tobacco and South Africa is now one of the biggest buyers of Zimbabwean leaf.

    Increasing Pressures on the sector

    The local industry is finding itself under increasing pressure. One of the key issues facing the sector is tightening legislation with regard to smoking. South Africa’s most recent proposed regulatory changes include plain packaging requirements as introduced in Australia in 2012. In addition, the South African government is keen to adopt further control measures before the World Conference on Tobacco or Health to be held in South Africa in 2018. Added to legislative pressures is the illegal trafficking of cigarettes. Locally illicit trading is estimated to account for 23% of the tobacco market and has cost the country more than R21bn in revenue since 2010. The hijacking of vehicles transporting legal tobacco products is also becoming an issue of increasing concern, with British American Tobacco South Africa announcing that approximately 1,400 of its trucks are hijacked every year.

    Read More..
    The Tobacco Industry in South Africa 2015

    Full Report

    R 1 900.00(ZAR) estimated $100.48 (USD)*

    Buy Now +

    Industry Overview

    R 1 330.00(ZAR) estimated $ 70.34 (USD)*

    Buy Now +

    Historical Reports

    The Tobacco Industry in South Africa 2021-08-25

    R 6 500.00(ZAR) estimated $343.74 (USD)*

    View Report Add to Cart

    The Tobacco Industry in South Africa 2019-07-05

    R 1 900.00(ZAR) estimated $100.48 (USD)*

    View Report Add to Cart

    The Tobacco Industry in South Africa 2018-03-26

    R 1 900.00(ZAR) estimated $100.48 (USD)*

    View Report Add to Cart

    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Value Chain 2
    2.2. Geographic Position 3
    3. SIZE OF THE INDUSTRY 4
    4. STATE OF THE INDUSTRY 8
    4.1. Local 8
    4.1.1. Corporate Actions 10
    4.1.2. Regulations 11
    4.1.3. Enterprise Development and Social Economic Development 12
    4.2. Continental 12
    4.3. International 13
    5. INFLUENCING FACTORS 15
    5.1. Economic Environment 15
    5.2. Health Concerns 15
    5.3. Proposals to Ban the Growing of Tobacco 16
    5.4. Illicit Trafficking 16
    5.5. Regulations 17
    5.6. Technology 18
    5.7. Research and Development (R&D) 19
    5.8. Innovation 19
    5.9. Labour Resources 20
    5.10. Environmental Concerns 22
    6. COMPETITION 23
    7. SWOT ANALYSIS 24
    8. OUTLOOK 24
    9. INDUSTRY ASSOCIATIONS 25
    10. REFERENCES 25
    10.1. Publications, Podcasts and Youtube 25
    10.2. Websites 26
    COMPANY PROFILES 27
    AMALGAMATED TOBACCO MANUFACTURING (PTY) LTD 27
    BRITISH AMERICAN TOBACCO SOUTH AFRICA (PTY) LTD 29
    CARNILINX (PTY) LTD 32
    GOLD LEAF TOBACCO CORPORATION (PTY) LTD 34
    JT INTERNATIONAL SOUTH AFRICA (PTY) LTD 36
    LEONARD DINGLER (PTY) LTD 38
    OTP DISTRIBUTORS (PTY) LTD 40
    PHILIP MORRIS SOUTH AFRICA (PTY) LTD 42
    UNIVERSAL LEAF SOUTH AFRICA (PTY) LTD 44
    VAN ERKOMS TABAKKE (PTY) LTD 46

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