Americans spend an estimated $51.9 billion on tobacco products in 1997, or just under 1% of their disposable income. Of this amount, $48.7 billion (or 94%) was spent on cigarettes, $2.2 billion on smokeless and smoking tobacco, and $0.9 billion on cigars.
Cigarette production in the United States is largely concentrated in the hands of three firms: Philip Morris, RJR Nabisco, and Brown & Williamson. These firms accounted for about 90% of total production in 1996. Domestic sales of major U.S. firms (namely, Philip Morris and RJR Nabisco) grew very little over the period 1992-1996. International sales, on the other hand, increased more rapidly during this period, indicating that these firms are giving high priority to increasing cigarette sales abroad, given the diminished growth potential of the U.S. market in recent years. Cigarette production in the United States registered only a slight gain (0.2%) over 1992-1997. However, cigarette consumption on a per capita basis declined by about 9%. The U.S. share of world production of cigarettes declined from 13.4% to 12.6% over the period 1992-1997. The U.S. share of world exports also declined from 26% to 21% in the same period.
China is by far the largest producer of cigarettes in the world; the second largest producer is the United States. In 1997 China produced an estimated 1.7 trillion pieces, almost two and one half times the 720 billion pieces produced in the United States. The United States is by far the largest cigarette exporting nation in the world, with exports in 1997 estimated about 217 billion pieces, or 21% of the world total. China is the largest consumer market in the world, with over 300 million smokers consuming 1.7 trillion cigarettes in 1997. Its market, however, is basically closed to foreign exporters. China's desire to become a member of the World Trade Organization, eventually could lead to an opening of its market to cigarette imports.
Like the cigarette industry, the smokeless tobacco industry (including the production of snuff and chewing tobacco) is highly concentrated among a few firms: U.S. Tobacco Company, Conwood Company, and Pinkerton Tobacco Company. In 1996 the companies accounted for abut 83% of total industry sales. The production of chewing tobacco declined by 16% over the 1992-1997 period while the output of snuff products increased by 11%. This rise was due entirely to the increase in the output of moist snuff products.
[...] MAJOR FINDINGS ABOUT THE US TOBACCO INDUSTRY This review and analysis of the domestic and international operations, production and sales of the U. S. tobacco industry over the period 1992- 1997 has produced a number of significant findings. These include the following: Cigarette production in the United States is largely concentrated in the hands of three firms: Philip Morris, RJR Nabisco, and Brown & Williamson. These firms accounted for about 90% of total production in 1997. Domestic sales of major U.S. [...]
[...] FRAMEWORK CONVENTION ON TOBACCO CONTROL (FCTC) On the bittersweet day of May 21, the tobacco industry both faced the adoption of the World Health Organization's Framework Convention on Tobacco Control (FCTC) and celebrated the decertification of the Engle trial. After four years of negotiations, the FCTC was adopted by all 192 member countries. Now, it is up to the member countries to ratify the treaty. The treaty must be signed and ratified by at least 40 countries in order for it to take effect. [...]
[...] 'BRAND-STRETCHING' Brand stretching, that is, the use of tobacco brand names on non-tobacco merchandise or services, has been used by the tobacco industry for many years as a means of promoting cigarettes when faced with a ban on direct tobacco advertising. The examples which follow show the extent to which the tobacco industry will go in order to circumvent restrictions on tobacco promotion. This has serious implications for European nations as governments draft their domestic legislation to conform with the EU Directive on tobacco advertising. [...]
[...] The law is under a review Singapore Smoking is banned in air-conditioned F&B outlets and in meetings and banquets where food is served Hong Kong There is no ban, but restaurants have smoking and non- smoking sections 25 Philippines There is no ban Malaysia There is no ban, but hotels and restaurants have adopted Courtesy of Choice Program 27 Caribbean There is no ban on smoking in any of the Caribbean countries (39 in number) as reported by Caribbean Hotel Association FUTURE OF THE TOBACCO INDUSTRY Despite the hopes of some of the health lobby, the industry will survive even the most severe litigation assaults. [...]
[...] Like the cigarette industry, the smokeless tobacco industry (including the production of snuff and chewing tobacco) is highly concentrated among a few firms: U.S. Tobacco Company, Conwood Company, and Pinkerton Tobacco Company. In 1996 the companies accounted for abut 83% of total industry sales. The production of chewing tobacco declined by 16% over the 1992-1997 period while the output of snuff products increased by 11%. This rise was due entirely to the increase in the output of moist snuff products. [...]
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