1) We're seeing more people who do smoke smoke as an occasional vice rather than a daily habit. Depending on the nature of the survey, they may or may not be classified as a smoker (i.e., they might not have smoked in the last week). But in any case, they are less likely to be price-sensitive because of their rather low consumption--comparing someone who smokes one pack a month vs one or more packs a day.
2) Related to 1), I would expect this to drive sales of full-priced brands over discount brands, leading to higher per-pack margins. If you're only smoking occasionally, you're not looking for a cheap fix.
3) Also related to 1), it seems nowadays that only the heaviest smokers still buy cigarettes by the carton. Many moderate smokers who feel ambivalent about their habit will pay extra buying one pack at a time to avoid "committing" to 200 cigarettes at a time, even if it would make significant economic sense to buy cigarettes by the carton. A light smoker won't consider buying a carton. Of course, this drives up per-pack margins as well.
4) With most forms of advertising banned for all manufacturers, this significantly lowers marketing costs and also increases margins. It also creates massive barriers to entry. The limitations on "light/low-tar" cigarettes also eliminates a significant R&D expense; there's no incentive for making a seemingly (and spuriously) "healthier" traditional combustible cigarette.
5) It seems like cigarette sales are clustering around just a handful of brands and styles, most notably Marlboro Gold (Lights) as the canonical example. Not having to support so many low-selling brands has to be a cost savings as well.
As an aside, I have often wondered why so many smokers smoke Marlboros, especially as advertising has been curtailed and banned over the years. Lock-in? Following the crowd? Is there something particularly appealing about Marlboro from a functional POV? Or have they simply become the "Coca-Cola" of cigarettes, that is, a ubiquitous brand available everywhere?
Some things:
1) We're seeing more people who do smoke smoke as an occasional vice rather than a daily habit. Depending on the nature of the survey, they may or may not be classified as a smoker (i.e., they might not have smoked in the last week). But in any case, they are less likely to be price-sensitive because of their rather low consumption--comparing someone who smokes one pack a month vs one or more packs a day.
2) Related to 1), I would expect this to drive sales of full-priced brands over discount brands, leading to higher per-pack margins. If you're only smoking occasionally, you're not looking for a cheap fix.
3) Also related to 1), it seems nowadays that only the heaviest smokers still buy cigarettes by the carton. Many moderate smokers who feel ambivalent about their habit will pay extra buying one pack at a time to avoid "committing" to 200 cigarettes at a time, even if it would make significant economic sense to buy cigarettes by the carton. A light smoker won't consider buying a carton. Of course, this drives up per-pack margins as well.
4) With most forms of advertising banned for all manufacturers, this significantly lowers marketing costs and also increases margins. It also creates massive barriers to entry. The limitations on "light/low-tar" cigarettes also eliminates a significant R&D expense; there's no incentive for making a seemingly (and spuriously) "healthier" traditional combustible cigarette.
5) It seems like cigarette sales are clustering around just a handful of brands and styles, most notably Marlboro Gold (Lights) as the canonical example. Not having to support so many low-selling brands has to be a cost savings as well.
As an aside, I have often wondered why so many smokers smoke Marlboros, especially as advertising has been curtailed and banned over the years. Lock-in? Following the crowd? Is there something particularly appealing about Marlboro from a functional POV? Or have they simply become the "Coca-Cola" of cigarettes, that is, a ubiquitous brand available everywhere?
As I've said before: those who drink, drink. Same applies to smoking: those who smoke, smoke.