Farmer's Voice

Tobacco Expert in China Says Domestic Cigarette Sector Facing Challenges

Chinese tobacco expert Fan Qilin said the country's cigarette sector has been facing serious challenges since the beginning of 2015, including decreased production, sluggish sales, continued high inventories, downward economy and decreased consumption, which, if left unchecked, could create problems. Fan said cigarette output totaled 42.65 million cases or 2.133 trillion pieces in January-October 2015, down 2.4% from the corresponding period in 2014, while sales volume 42.57 million cases or 2.129 trillion pieces was down 2.3%. Sales of Grade C, D and E cigarettes were down year-year 0.9%, 1.3% and 0.6%, respectively, in the first ten months of 2015. Sales of 29 key cigarette brands declined 1.8% y-y to 35.83 million cases or 1.792 trillion pieces in January-October 2015. However, Fan said he is optimistic about the future of the domestic tobacco sector as he believes it has entered into an innovation stage for new products. Chuanyu Tobacco Industrial Corp. Lt. recently introduced many extensions of its Jiaozi cigarette brand, including Jiaozi (Kuanzhai), Jiaozi (Qingtianxiang), Jiaozi (Xiangyun), Jiaozi (Black) and Jiaozi (Hongfurong), while Chongqing Tobacco has created new extensions of its Tianzi cigarette brand, he added (Tobacco China 12/11).