Ken Research - Indonesia Cigarette Market

Tripling Cigarette Production to Boost the Cigarette Industry in Indonesia: Ken Research The report titled “Cigarettes in Indonesia”, provides a comprehensive analysis of cigarette industry, demographics of cigarette market in Indonesia, cigarette leading players in Indonesia, e-cigarette development, excise tax on cigarettes, government efforts to reduce smoking and future of cigarettes market in Indonesia. Industry Overview and Leading Players in Indonesia: Indonesia has witnessed unfavourable economic conditions in the recent years. Inflation in basic necessities has resulted in the consumer’s lower purchasing power which has indirectly affected the growth of cigarette market in Indonesia. It was observed that the cigarette market posted a negative growth due to inflation and consumers shifting towards e-cigarettes or vapour products. The machine-rolled clove cigarette (kretek) is popular cigarette among the Indonesian population. Other variants of cigarettes are hand-rolled Kretek, machine-rolled white and others. Gudang Garam, HM Sampoerna, and Djarum are the major leading players in Indonesian cigarette market. Gudang Garam leads in machine-made cigarettes and HM Sampoerna manufactures both hand-made and machine made cigarettes. It was observed that there is a stiff competition between these three leading players; therefore, it is difficult for new players to enter the cigarette market in Indonesia. The leading cigarette manufacturers in Indonesia are Gudang Garam, HM Sampoerna, Bentel Internasional Investama, Wismilak Inti Makmur, Djarum and Nojorono. These six manufacturers control the Indonesia’s tobacco and cigarette market while employing millions of workers. It is estimated that over 200,000 people die annually in Indonesia due to heart disease and cancer caused by smoking. Demographics of Indonesia Cigarette Consumption: Indonesia's cigarette industry is under pressure in recent years due to various reasons but hopes for positive results in the next