Tobacco and Other Store-Based Retailing in Australia - Industry Market Research Report

No longer taxing: As pet stores and duty-free sales performance grow, industry revenue follows

The Tobacco and Other Store-Based Retailing industry is highly diverse. Industry operators retail a variety of specialised products including tobacco, pets, pet supplies, swimming pools, spas, adult paraphernalia and art supplies. Several consumer, economic and regulatory factors have influenced the industry over the past five years. For example, increasing tobacco excises boosted revenue slightly among tobacconists despite the smoking rate declining. Expenditure on pets and pet supplies has strongly risen over the period, due to rising pet ownership. Duty-free store operators that offer tobacco products also benefited from greater excises due to the absence of hefty tobacco taxes at these establishments. However, the severe decline in international tourism during the COVID-19 pandemic has caused the duty-free stores segment to significantly contract. Overall, industry revenue is expected to rise at an annualised 1.5% over the five years through 2022-23, to total $14.8 billion. This includes an anticipated rise of 6.8% in the current year, as duty-free stores sales return to more normal levels and demand from pet supply retails continues its strong growth trajectory.

Industry operators primarily retail tobacco and a range of specialised products including pets, pet supplies, swimming pool and spa equipment, and adult paraphernalia. The industry also includes duty-free stores. Industry firms source products from wholesalers or directly from manufacturers and sell them through retail outlets to the general public. The industry excludes generalised retailers such as supermarkets, hardware stores and department stores.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.