China’s Tobacco Industry Report

Now，sum up the development of the global and China’s tobacco industries in 2006.Through accurate data and full elaboration，it describes the structure of China’s tobacco industry and competition situation in the industry from various angles.Meanwhile，presents assessment of major enterprises’business strategy and competitiveness.

The report especially points out the following:In 2006，China’s tobacco industry experienced recovery growth，with increase in both output and sales revenue.The industry’s comprehensive economic indicators improved.Consolidation produced initial effect，and the industry has boosted its internationa competitiveness.The content of tar in cigarette products decreased significantly.

Market competition shifted from purely local protectionism to comprehensive competition involving various factors.Brand competition is getting increasingly fierce.In the next few years，production and sales of tobacco will continue to grow steadily，but the margin of growth will not be wide.Driven by market demand，the price of cigarettes will keep rising.As the grade of cigarettes improves，the room for the fourth-class and fifth-class cigarettes will shrink.The tobacco industry will continue to consolidate.Yunnan，Shanghai and Hunan cigarette groups are emerging.

hancheng

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