The tobacconist market - France (2024)

1.2 Global market

In ****, the global tobacco market was estimated at $***.* billion, and is expected to grow at an average annual rate of *.**% between **** and ****. By ****, it could reach $*,***.* billion. Among the regions, North America is expected to record the fastest growth over this period.

Tobacco market size World, **** - **** Source: ****

In ****, the total number of tobacco users worldwide will amount to *,*** million people aged ** and over. The region with the highest number of users is Southeast Asia, with *** million, although this figure is down on previous years. The European region has *** million smokers, while the Western Pacific region has *** million. Africa has ** million consumers, the Americas *** million, and the Eastern Mediterranean ** million. There is a global downward trend, indicating potentially effective public health efforts to reduce tobacco consumption.

number of tobacco users by WHO region

World, **** - ****, in millions

Source: ****

* forecasts

1.3 The tobacconist market in France

With almost **,*** outlets in France, tobacconists are the leading local retail network in the country. [***] Whether it's to top up your phone, buy a prepaid card, a pack of cigarettes, scratch cards, a newspaper or pick up a parcel, everyone has a reason to go to their tobacconist.

The tobacconists' market is organized into two main categories:

tobacconists: a local business with longer opening hours than most other outlets. These outlets are constantly diversifying, introducing products and services unrelated to tobacco (***) cafés-tabac: these account for **% of tobacconists[***] and are subject to various regulations concerning the sale of alcohol (***) and tobacco

Market approach by NAF code: **.**Z

Code **.**Z covers the retail sale of tobacco products in specialized stores, according to the Insee heading. This includes all tobacconists' outlets and a proportion of tobacconists' cafés, according to the proportion of their revenues associated with tobacco sales. However, it's important to note that some tobacconists are recorded under NAF code ****Z, for beverage outlets.

In ****, total tobacco sales in mainland France will amount to **.* billion euros, compared with **.* billion euros in **** and **.* billion euros in ****. Between **** and ****, tobacco sales will have increased by *.*%, mainly due to higher tax revenues.

Total tobacco ...

1.4 The vaping and gambling market

The latest analyses of the supply on the vaping products market reveal that in ****, around **,*** products were listed on the marketcomprising over **,*** unique commercial references, with the use of *,*** substances as ingredients and between * and ** components per liquid (***). In addition, the sector's sales have grown by **% over three years, from €*** million in **** to €*.** billion in ****. This growth is attributed to the diversification of products available, as well as increased consumption among adults and teenagers. Tobacconists account for between **% and **% of the sector's distribution in value terms, while specialist stores, numbering *,***, account for **% of sales. The remainder of transactions are mainly carried out online. [***]

The market for vaping products France, **** - ****, in billions of euros Source: ****

The French gambling market has reached unprecedented revenue levels, with sales reaching **.* billion euros in ****, representing an increase of *.*% on ****. All types of games, such as poker, lotto and scratch tickets, benefit from this growth. Despite inflation, many French people continue to turn to gambling, attracted by its growing popularity.

Gambling sales France, **** - ****, in billions of euros Source: ****

2.1 French smokers

Recent data from the Santé publique France Barometer (***) a day. These rates are broadly similar to those observed in ****.

Men continue to smoke more than women in ****, and social disparities remain significant. There is a **-point gap between the prevalence of daily smoking among people with no diploma or less than a baccalaureate (***), these inequalities seem to have increased since ****. [***]

Trends in tobacco use among adults aged ** to ** France, **** - ****, in % Source: ****

The latest data from the OFDT's survey on health and behavior during the call to prepare for defense (***). [***]

Level of tobacco use among **-year-olds France, ****, in Source: ****

2.2 French preferences

The graphs below illustrate French preferences for electronic cigarette brands, in particular Aspire and Vaporesso, in February ****. Aspire is liked by **% of respondents, against *.*% who dislike it. Vaporesso is slightly preferred, with **% in favor and *.*% opposed

Electronic cigarette brands preferred by the French France, February ****, in Source: ****

The chart below details French preferences by gender. Men seem to prefer both brands more than women, with **.*% of men liking Aspire versus **.*% of women, and **.*% of men liking Vaporesso versus **% of women.

These data suggest that Vaporesso is slightly more popular than Aspire, particularly among men, although both brands enjoy a fairly positive image overall.

Electronic cigarette brands preferred by the French, by gender France, February ****, in % Source: ****

In terms of age groups, **-** year-olds are the most fond of electronic cigarettes, with a slight preference for Aspire (***).

Electronic cigarette brands preferred by the French, by age group France, February ****, in Source: ****

2.3 French people's opinion of the tobacco industry

An annual survey conducted by the Alliance Against Tobacco on the perception of tobacco by the French showed that the vast majority of participants consider that "the tobacco industry violates human rights by marketing an addictive product" (***): among them, **% "strongly agree" with this idea, while **% "somewhat agree". The percentage of people expressing overall agreement with this view has risen by * points since ****.

The tobacco industry goes against human rights by selling an addictive product France, ****, in Source: ****

More than * out of ** people (***) believe that "the tobacco industry currently wields excessive power in relation to those involved in the fight against smoking". The percentage of those who share this opinion has risen by * points since ****. These results reveal a growing awareness among the French, and underline the importance of strengthening policies aimed at strictly regulating interactions between the tobacco industry and public decision-makers.

Today, the tobacco industry is too powerful in the fight against smoking France, ****, in % Source: ****

2.4 Tobacconists and the black market

According to a study by the Observatoire français des drogues et des tendances addictives, some **.*% of smokers bought their last pack from a tobacconist, showing that the black market accounts for only a small proportion of purchases, with only *% of smokers turning to illegal sources. This data contradicts the idea of a significant transfer to the parallel market, despite successive price increases.

The black market is estimated to account for between **% and **% of tobacco supplies, well below the figures often put forward by the tobacco industry. The study points out that, despite the policy of price increases between **** and ****, purchasing habits have remained stable. In ****, the average price of a pack of cigarettes was **.** euros, compared with * euros in ****.

The study also shows a decline in tobacco consumption among both adults and young people. Daily smoking among adults fell from **.*% to **.*%, while it halved among **-year-olds, reaching **.*% in ****. Despite the ban on sales to minors, a majority of young people (***) continue to buy tobacco from tobacconists, often because of a lack of control. [***]

Share of smokers purchasing cigarettes from illegal sources France, ****, in Source: ****

2.5 Smoking cessation

Sales and market shares of the various types of treatment in **** have evolved as follows:

Oral substitutes continue to grow (***), accounting for **.*% of sales in ****, compared with **% in ****, **% in **** and **.*% in ****. Sales of transdermal patches rose by **.*% on a constant-day basis. Their market share of NRT sold remains stable at **.*% (***). [***]

Sales of smoking cessation treatments France, **** - ****, in equivalent months of treatment Source: ****

2.6 The French and sports betting

The graph below reveals that the French as a whole perceive sports betting above all as a risk of addiction, with **% acknowledging this danger and **% declaring themselves to be in complete agreement. On the other hand, **% consider that betting makes matches more exciting to watch, although only *% share this opinion very strongly. As far as the possibility of financial gain is concerned, **% of French people believe that betting makes it possible to win money, but only *% are entirely convinced. In short, the French mainly see sports betting in terms of addiction risks, with a more nuanced perception of the entertainment and financial benefits aspects.

Statements about sports betting France, ****, in Source: ****

3.1 The value chain

The tobacconists' value chain can be divided into three stages before the products are received by the end customer.

Production and supply: This is the first stage in the process. These are the companies that grow and transform raw tobacco into cigarettes and other products. Another player in this stage are the producers of other products. These are the companies that supply tobacconists with newspapers, magazines, vaping products, scratch cards, drinks, stationery and more. Distribution and logistics: These are the wholesalers who supply tobacconists with tobacco and other products. In France, Logista is a major player, distributing tobacco products to tobacconists. The tobacconist network: Buralistes are the final point of sale, selling directly to consumers. In France, these establishments are regulated and tobacconists are licensed by customs to sell tobacco.

3.2 A shrinking monopoly for tobacconists in various product segments

While the sale of cigarettes seemed to be the undisputed monopoly of French tobacconists, rising tobacco prices are justifying some consumers' search for foreign alternatives. In fact, almost one in five French smokers buys their cigarettes abroad. [***] Neighboring countries are the preferred sources for French smokers, but they also buy cigarettes on vacation in North Africa and Asia. However, the figures make it difficult to distinguish between legal and contraband purchases.

What's more, although tobacconists have adapted to the growing demand for e-cigarettes, the emergence of specialist stores and websites represents increased competition, with a wide choice of ranges and liquids, and a reputedly more specialized customer service.

Similarly, sports betting and gaming are increasingly done online, with FDJ in particular setting up its online gaming platform: lotto, but also scratch games.

Competition from online sports and horserace betting services in France

Here again, tobacconists face increasing competition from online betting platforms such as Unibet, Winamax and Betclic. These sites and mobile applications offer better odds and easily set up promotions, which they communicate live via mobile notifications. Studies show that punters are not loyal to their bookmaker: French punters have an average of *.* betting accounts, yet this figure is much ...

3.3 A steadily growing number of tobacconists

Between **** and ****, the sector of stores specializing in the sale of tobacco products experienced significant growth in France. The number of establishments rose from *,*** to *,***, an increase of almost **%. This expansion can also be seen in the number of employees in the sector. Indeed, they have risen from *,*** in **** to **,*** in ****, an increase of around **%. This development suggests that these establishments are playing an increasingly significant role in employment, contributing to the local economic dynamic.

Number of tobacco-related retail establishments in specialized stores France, **** - **** Source: ****

In terms of regional distribution, Auvergne-Rhône-Alpes leads with *** establishments, followed by Occitanie with *** and Île-de-France with ***.

Source: ****

Number of employees in tobacco products retailing in specialized stores France, **** -**** Source: ****

4.1 Typology of products offered by tobacconists

Depending on the tobacconist, the range of goods and services on offer can vary enormously. Tobacconists are local businesses that adapt to the needs of their customers and the local area. Here are a few examples of products and services commonly offered at tobacconists.

Product range :

tobacco (***) lotto / euromillion tickets (***) fDJ scratch cards (***) souvenirs - Eiffel towers, corkscrews (***) smoking equipment (***) stamps (***) pre-paid cards (***) tax stamps (***) transport tickets (***) press / magazines (***) chewing gums and candies (***)

Service offer :

after-sales service for FDJ winnings bar / restaurant service parcel delivery service postal service

4.2 Tobacco prices

In Europe, the price of a pack of ** cigarettes varies considerably from country to country, from a low of €*.** in Greece to a high of €**.** in Ireland. France ranks among the most expensive countries for cigarettes, with a price of €**.** per pack, making it the third most expensive European country for smokers.

The structure of the price of a pack of cigarettes in France breaks down mainly into different taxes and margins. Proportional excise duty, a tax based on the selling price, accounts for **% of the total cost of a pack. added to this is fixed excise duty, which accounts for **.**% of the price. VAT amounts to **.**%, which is higher than the margins of tobacconists (***). This breakdown clearly shows how taxation plays a major role in cigarette pricing in France, from a public health perspective aimed at discouraging consumption.

Price for a pack of ** Marlboro red cigarettes in November **** Europe, ****, in euros Source: ****

Breakdown of the price of a pack of ** cigarettes France, March ****, in Source: ****

Between **** and ****, the average price of a pack of rolling tobacco and cigarettes of the best-selling brand rose significantly. The price of rolling tobacco has risen sharply, from €**.** in **** to €**.** in ****. This increase reflects a ...

4.3 Decrease in tobacco sales through tobacconists

The graphs below show the evolution of tobacco sales in the tobacconist network in France from **** to ****, in tons, and the breakdown between the different types of tobacco: cigarettes, rolling tobacco and other tobacco.

There is a gradual decline in total tobacco sales over this period, from **,*** tonnes in **** to **,*** tonnes in ****. This decline is mainly due to a reduction in cigarette sales, which account for the majority of tobacco sales each year (***). Rolling tobacco and other tobacco sales remain relatively stable in percentage terms, although a slight increase in rolling tobacco sales is visible from **** to ****, when it rises from **% to **%, before stabilizing at around **%.

There is a trend of overall decline in tobacco sales in France, marked by a notable drop in cigarette sales, which could be attributable to public health policies and price increases to discourage tobacco consumption.

Trend in total tobacco sales France, **** - ****, in tonnes Source: ****

Breakdown of tobacco sales by type France, ****, in Source: ****

Tobacco sales in mainland France, September ****, compared with September ****

source: Customs & Indirect Duties

5.1 Regulatory framework for tobacconists in France

Tobacco retailing is a state monopoly, the management of which is entrusted to tobacconists. Tobacco retailers are not the owners of the tobacco products they distribute: they are the custodians until they are sold.

To open a tobacconist's, the State must issue a management contract to the tobacconist (***) who will be in charge of retail sales. It is also thanks to this management contract that the tobacconist sells tax products on behalf of the State. There are two ways to become a tobacconist: by winning a tender or by transfer. A transfer is the succession of a manager who ceases his activities to another who buys the business.

Setting up a tobacconist's shop

Setting up a new tobacconist's is the procedure decided by the administration. In towns with more than *,*** inhabitants, the first step is to transfer the business, followed by a call for applications if necessary. In towns with fewer than *,*** inhabitants, these two procedures can take place at the same time. It is also possible to have been appointed as successor by a manager who is going out of business. [***]

Establishment by transfer

This procedure concerns permanent tobacconists. The regional customs director authorizes the tobacconist to operate in the ...

5.2 Support for business diversification

The decree of August *, **** introduces an annual business diversification bonus of *,*** euros for tobacconists. To qualify, tobacconists must meet three conditions:

Annual sales of less than ***,*** euros They must be located in a commune with fewer than *,*** inhabitants, in a "frontalie" department or in a "priority" district Offer at least five of the fifteen or so products or services listed in the Légifrance decree

The diversification of tobacconists' offerings is a key factor in preserving tobacconists for the foreseeable future.

6.1 Market segmentation

• British American Tobacco
• Philip Morris International
• Japan Tobacco
• Imperial Brands
• Kumulus Vape
• Altria (Philip Morris USA, Malboro)
• Maison de la Presse Sediff (Nap groupe)
• Logista France (Altria)
• Altadis (Imperial tobacco)
• JTI (Japan Tobacco International)
• Republic Technologies Groupe
• Scandinavian Tobacco Group
• Arnold André