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Summary and extracts

1 Market overview

1.1 Definition and scope of study

A tobacconist is a convenience store open for more than 10 hours a day in France, 6 or 7 days a week: either a bar-tabac, a village multi-service store, or a press and games outlet. Today, there are almost 23,000 sales outlets in France, making tobacconists the leading local retailers in the country.

Buralistes" are licensed to sell tobacco products in France. Buralistes are trying to integrate the tobacco value chain in France, including the creation by the Confédération des Buralistes in 2017 of their own cigarette brand 'LCB' ("La Cigarette du Buraliste") to compete with the tobacco giants in France with low prices.

Globally, the tobacco market is expected to grow at a CAGR of 2.01% between 2023 and 2033, with North America the fastest-growing region over this period. In terms of tobacco consumers, the region with the highest number of users is South-East Asia, with 411 million consumers, although this figure is down on previous years. The European region, meanwhile, has 179 million.

In France, the price of a pack of cigarettes reached the €10.5 mark in 2023, leading to a drop in consumption. Smoking has been declining in France since 2010, and has accelerated in recent years. What's more, as the e-cigarette market gradually replaces the traditional tobacco market, tobacconists are tackling this growing market with the sale of several types of products and tobacco liquids in a variety of flavors. Vapotage, heating tobacco and chichas for tobacco-related products; but also stationery and newspapers as well as food products: diversification today appears to be essential to survive on the market: indeed, the crisis is hitting tobacconists harder and harder, with almost 8,000 tobacconists closing down over the last 15 years. The future of this type of business therefore lies in its ability to reinvent itself, diversify and modernize.

What's more, tobacconists' overall offering is diversifying, gradually transforming their business model with the aim of remaining the local shop par excellence.

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 ...

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 ...

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 ...

2 Demand analysis

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 ...

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 ...

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 ...

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 ...

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 ...

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 ...

3 Market structure

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 ...

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 ...

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 ...

4 Offer analysis

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 ...

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 ...

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 ...

5 Regulations

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 ...

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 ...

6 Positioning the players

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

List of charts presented in this market study

  • Where to buy electronic cigarettes and refills
  • Sales index - retail sale of tobacco products in specialized stores
  • Total tobacco sales
  • Electronic cigarette sales
  • Gambling sales
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Latest news

Japan Tobacco strengthens its position in the United States with the acquisition of Vector Group - 22/08/2024
  • - Global tobacco market: projected worldwide sales of $965 billion in 2024, with an annual growth rate of 2.6% over five years
  • - Value of Japan Tobacco's acquisition of Vector Group: $2.4 billion
  • - Increase in Japan Tobacco's U.S. market share from 2.3% to around 8%
  • - Vector Group net profit in 2023: $183.5 million
  • - Vector Group sales in 2023: $1.42 billion
  • - Objective of acquisition: to strengthen Japan Tobacco's presence in the United States and to invest in heated tobacco
  • - Expected increase in Japan Tobacco's spending on heated tobacco: at least 50%
  • - Japan Tobacco's market share in Russia: close to 35%
Closure of cigarette plant in Corsica - 03/10/2023
  • The Furiani cigarette factory in Haute-Corse, owned by the British Imperial Brands group, will cease production by the end of this year.
  • The plant produces 600 million cigarettes a year for local and national markets.
  • 29 employees will remain at the plant, compared with over 200 in the past.
  • Corsica's special tobacco tax will disappear at the end of 2025.
  • The closure follows an overall and continuing decline in legal sales volumes, which are being replaced by smuggling and counterfeiting.
The NAP group (Maison de la Presse) continues its transformation - 31/07/2023
  • The NAP Group has around 1,250 sales outlets.
  • Around a third of these outlets are located in towns with fewer than 100,000 inhabitants.
  • The NAP Group has grown by +1 to +1.5% in value since the beginning of 2022.
  • The group achieved sales of 2 billion euros in 2022.
  • The NAP group represents 17% of press sales in France.
  • It is the 4th largest bookstore chain, excluding food retailers.
  • The group plans to launch corners, with an initial estimate of around a hundred by the end of 2024.
  • On average, a Maison de la Presse welcomes over 400 customers a day.
  • By 2022, the NAP Group expects to have collected 900 million euros in tobacco sales.
Several tobacco companies are banking on this product invented in Scandinavia. - 31/07/2023
  • The Velo brand nicotine sachet is held between the upper lip and gum for around thirty minutes, for a gradual release of nicotine.
  • British American Tobacco (BAT), which already markets the nicotine sachets in a dozen European countries, launched the brand in France after a conclusive test.
  • Since the beginning of the year, BAT's range has been available in a quarter of French tobacconists and on their website.
  • The sale of Velo nicotine sachets will be banned in Belgium from October 1.
  • There are several dozen brands of nicotine sachets sold in France, most of them imported.
  • These new product categories now account for 15% of BAT's business.
  • Philip Morris expects tobacco alternatives to account for half its sales by 2025, compared with one-third today.
  • The global nicotine sachet market, valued at $2 billion in 2020, is predicted to grow by over 30% a year between now and 2030.
Tobacco giants face cigarette decline - 13/05/2023
  • In 2020, 17% of the world's population were smokers, compared with almost 27% in 2000
  • a further decline is expected, to 15.4% by 2025.
  • Cigarette sales volumes have fallen from 5,800 billion in 2007 to 4,700 billion in 2020, and are expected to drop to 4,500 billion by 2025.
  • One third of Philip Morris International's (PMI) revenues come from alternatives to cigarettes, with the share expected to rise to 50% by 2025.
  • New product categories account for 14.8% of business at BAT (Lucky Strike, Vogue...) and less than 5% at JTI (Winston, Camel...).
  • Cigarette manufacturers hold just 15% of the French vape market.
  • At PMI, 79% of profits still come from cigarettes.
  • Emerging markets such as China, Indonesia, Turkey and Russia remain attractive to tobacco companies.
Altria spends US$2.75 billion on Njoy electronic cigarettes. - 07/03/2023
  • Takeover of e-cigarette manufacturer Njoy
  • Altria has exchanged its 35% stake in Juul, for which it paid $12.8 billion at the end of 2018, for the right to use some of its technologies on heated tobacco devices.
  • Juul once enjoyed phenomenal success with its USB-key-shaped vaporettes
  • Regulatory uncertainties over the future of e-cigarettes in the United States
  • Altria estimates that its stake was worth only $250 million

Companies quoted in this study

This study contains a complete overview of the companies in the market, with the latest figures and news for each company. :

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

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