Tobacco Asia

Volume 19, Number 1

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Page 29 of 75

30 tobaccoasia Along with the continued growth in consumer demand for less harmful tobacco products with new packaging and improved ingredients, slim cigarettes – which used to be in low demand in China – are now on a rapid rise. Since 2010, the slim cigarette segment grew annually by 40%. In 2012 alone, the average annual sales volume of slim cigarettes reached a high of 50,000 cases (2.5 billion cigarettes), which was far above the average sales growth of ordinary cigarettes in the same period. The year 2013 again saw increases and in 2014 the output of slim cigarettes in China reached 310,000 cases (15.5 billion cigarettes), up 99% year-on-year, with the sales volume reaching 279,000 cases (13.95 billion cigarettes), up 102% year-on-year. The State Tobacco Monopoly Administration (STMA) – the regulator of China's tobacco indus- China Slim Cigarette Segment Fattens Its Market Share try – specifically provided in an official regulation that the perimeter of slim cigarettes shall be about 17mm, with a maximum of 18mm and a minimum of 16mm. To regulate orderly competition and develop- ment of this segment, STMA requires strength- ened r&d of the products. STMA urges Chinese cigarette makers to bring into full play their natural advantages in cutting costs, reducing consumption of raw materials, and developing high-grade, low- tar slim cigarettes. It also further divides develop- ment of slim cigarettes into "high quality, high technology, high start point, and high efficiency". Low-Tar and High-Grade STMA specifically requires that the category of prices of slim cigarette products developed in the future may not be below that of Grade Two Liqun (Fashion) brand is one of the key brands of China Tobacco Zhejiang Industrial Mount Tai (Happy Heart) of China Tobacco Shandong Industrial Nanjing (97mm Twelve Jinling Ladies Mint) developed by China Tobacco Jiangsu Industrial By Allen Liao

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