Tobacco companies will do everything possible to protect and grow their business. While transnational tobacco companies compete among themselves and with local companies for larger market share, they also unite through national manufacturers association to fight tobacco control collectively. Click on each country for information on main tobacco companies operating in the country and their cigarette market share.
Tobacco Industry Business Expansion in ASEAN Region
The ASEAN region is targeted as a major growth region and profit engine for transnational tobacco companies. This is reflected in their growing dominance of market share in each country.
Asia is very important to Philip Morris International (PMI) and provides the biggest slice of its global share at 34.2%. PMI has dominant market share in Philippines, Singapore and Indonesia. At PMI’s annual shareholders ’meetings, Indonesia and Philippines are hailed as ‘show countries’ showing strong sales.
British American Tobacco (BAT) has market dominance in Malaysia, and significant market share in Cambodia and Vietnam. Asia is the only region registering growth (5% in 2013) for BAT, while its business in other regions are declining.
Imperial Tobacco Group (ITG) has a near monopolistic control of market share in Lao PDR, where it has an unfair 25-year tax deal with the government to limit tax on tobacco. Laos has lost about $80 mil over 12 years.
Top 4 transnational tobacco companies (PMI, BAT, JTI, ITG) have manufacturing facilities in ASEAN region:
PMI: Indonesia, Malaysia, Philippines
BAT: Indonesia, Malaysia, Singapore, Vietnam
JTI: Malaysia, Myanmar
ITC: Lao PDR
Citi Research: Annual Cigarette Synopsis, 25 March 2014;
Euromonitor: Passport, 2014;
Cigarette Citadels: The Map Project; https://web.stanford.edu/group/tobaccoprv/cgi-bin/wordpress/