Tobacco Product Wholesaling in the UK Industry Market Research

The Tobacco Product Wholesaling industry has fallen victim to the wave of anti-smoking sentiment that has wafted through much of the Western world. Wholesalers have also been faced with an increasing incidence of being bypassed by large retailers. Government legislation regarding smoking bans, tobacco products advertising and increasing taxes and duties on the sale of cigarettes has contributed to a decline in overall smoking rates across the United Kingdom. In the five years leading up to 2012-13, industry revenue is estimated to decline by an annualised 3.3% to total £9.76 billion. In 2012-13, revenue is forecast to decline 4.6%.

The industry is expected to face similar headwinds over the next five years, as fewer take up smoking while more people quit. Legislation affecting the sale and marketing of tobacco products is also expected to become more stringent in the future. The UK and EU economic situation will also pose a significant impediment to the industry's future, as the debt saga engulfing the continent threatens its unity and economic prospects.

Wholesalers will also continue to be bypassed by larger players or global producers that seek vertically integrated structures. In the five years leading up to 2017-18, industry revenue is forecast to continue to decrease. For these reasons, industry research firm IBISWorld has updated its report on the Tobacco Product Wholesaling industry.