The relation between cigarette price and hand-rolling tobacco consumption in the UK: an ecological study

Rothwell, Lucas; Britton, John; Bogdanovica, Ilze

doi:10.1136/bmjopen-2015-007697

Cited by 27 publications

(23 citation statements)

References 18 publications

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“…10 That sales volumes for RYO continued to rise throughout the study period while cigarette sales were falling reflects a long-standing trend whereby price-conscious smokers respond to higher cigarette prices either by quitting tobacco use or by switching to the much less expensive option of smoking handrolled cigarettes. 9 Our findings do suggest however that prices for both RYO and cigarettes rose with the full adoption of plain packaging, and it is not clear whether this was the result of manufacturers passing on the costs of changing to plain packs to the consumer, or whether manufacturers used plain packs as a vehicle for higher prices, perhaps as a means to offset the impacts of reduced consumption of cigarettes in plain packs. 17 18 However, the fact that 30 g packs for RYO were introduced at lower prices initially (when volume of sales was close to zero) suggests that this could have been an attempt by the industry to allow costumers to adjust to the new upfront cost of buying a larger pack.…”

Section: Discussionmentioning

confidence: 56%

“…8 However we did not investigate trends in prices of RYO, to which many price-conscious smokers in the UK turn when manufactured cigarettes become less affordable. 9 This study uses similar methods to our earlier study 8 to describe RYO price and sales trends in relation to pack sizes before, during and after the UK transition to plain packaging, and in relation to cigarette sales volume and prices.…”

Section: Introductionmentioning

confidence: 99%

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Changes in roll-your-own tobacco and cigarette sales volume and prices before, during and after plain packaging legislation in the UK

2019

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BackgroundPlain packaging and minimum pack size legislation for tobacco products was introduced in the UK in May 2016, with a 1-year sell-off period until May 2017, during which both fully branded and plain packs of various sizes were legally available. This study investigates trends in prices of roll-your-own tobacco (RYO) before, during and after implementation of this legislation, and compares trends with those observed in the cigarette market.MethodsWe used Nielsen Scantrack data for the period from March 2013 to June 2018 to describe trends in UK inflation-adjusted prices and volumes of both RYO and cigarettes, and linear regression to estimate changes in prices associated with the introduction of plain packaging and the minimum pack sizes of 30 g RYO and 20 cigarettes.ResultsIn contrast to a downward trend in cigarette sales volumes, RYO volumes rose throughout the study period. By the time plain packs accounted for 75% or more of sales, the average price of products sold in equivalent pack sizes had increased, relative to average prices in the year before implementation and with adjustment for tax changes, from 34.9 to 38.8 pence per gram for RYO (mean difference 4.26, 95% CI 3.99 to 4.53 pence, 12% increase), and from 38.6 to 41.13 pence for cigarettes (mean difference 2.53, 95% CI 2.24 to 2.83 pence, 7% increase) per cigarette.ConclusionsNew legislation resulted in higher prices for RYO and manufactured cigarettes. However, sales volumes of RYO continued to increase throughout the study period, perhaps because RYO remains a less expensive means of smoking tobacco.

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Section: Discussionmentioning

confidence: 56%

Section: Introductionmentioning

confidence: 99%

Changes in roll-your-own tobacco and cigarette sales volume and prices before, during and after plain packaging legislation in the UK

2019

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“…This might include: l cheaper legal products (e.g. cheaper manufactured/FM and/or RYO cigarettes 12,[40][41][42][43][44] ) l tax avoidancetravellers returning from other European Union (EU) countries (which typically have lower tobacco duties) can legally purchase tobacco for personal use in line with guidelines for reasonable personal use, 45 or smokers can purchase tobacco in duty-free shops 46 l tax evasionchanging to illicit sources, 47 including purchases of a genuine TI product that has entered the illicit market or of counterfeit or 'illicit whites' l purchasing larger quantities which afford economies by buying in bulk (e.g. by the carton, rather than the pack).…”

Section: Uk Smokers' Behavioural Responses To Price Increasesmentioning

confidence: 99%

“…32,34,35 The use of cheaper tobacco products has indeed increased, particularly by the poorest. 10,12,[42][43][44]48 The same concerns apply to tobacco tax evasion, also used more frequently by lower socioeconomic groups. [49][50][51][52] By contrast, tax avoidance is more common among higher socioeconomic groups consistent with their greater propensity to travel.…”

Section: Uk Smokers' Behavioural Responses To Price Increasesmentioning

confidence: 99%

Impact of tobacco tax increases and industry pricing on smoking behaviours and inequalities: a mixed-methods study

et al. 2020

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Background Increasing tobacco prices through taxation is very effective for reducing smoking prevalence and inequalities. For optimum effect, understanding how the tobacco industry and smokers respond is essential. Tobacco taxation changes occurred in the UK over the study period, including annual increases, a shift in structure from ad valorem to specific taxation and relatively higher increases on roll-your-own tobacco than on factory-made cigarettes. Objectives Understanding tobacco industry pricing strategies in response to tax changes and the impact of tax on smokers’ behaviour, including tax evasion and avoidance, as well as the effect on smoking inequalities. Synthesising findings to inform how taxation can be improved as a public health intervention. Design Qualitative analysis and evidence synthesis (commercial and Nielsen data) and longitudinal and aggregate cross-sectional analyses (International Tobacco Control Policy Evaluation Project data). Setting The UK, from 2002 to 2016. Data sources and participants Data were from the tobacco industry commercial literature and retail tobacco sales data (Nielsen, New York, NY, USA). Participants were a longitudinal cohort (with replenishment) of smokers and ex-smokers from 10 surveys of the International Tobacco Control Policy Evaluation Project (around 1500 participants per survey). Main outcome measures (1) Tobacco industry pricing strategies, (2) sales volumes and prices by segments over time and (3) smokers’ behaviours, including products purchased, sources, brands, consumption, quit attempts, success and sociodemographic differences. Review methods Tobacco industry commercial literature was searched for mentions of tobacco products and price segments, with 517 articles extracted. Results The tobacco industry increased prices on top of tax increases (overshifting), particularly on premium products, and, recently, the tobacco industry overshifted more on cheap roll-your-own tobacco than on factory-made cigarettes. Increasingly, price rises were from industry revenue generation rather than tax. The tobacco industry raised prices gradually to soften impact; this was less possible with larger tax increases. Budget measures to reduce cheap product availability failed due to new cheap factory-made products, price marking and small packs. In 2014, smokers could buy factory-made (roll-your-own tobacco) cigarettes at real prices similar to 2002. Exclusive roll-your-own tobacco and mixed factory-made cigarettes and roll-your-own tobacco use increased, whereas exclusive factory-made cigarette use decreased, alongside increased cheap product use, rather than quitting. Quitting behaviours were associated with higher taxes. Smokers consumed fewer factory-made cigarettes and reduced roll-your-own tobacco weight over time. Apparent illicit purchasing did not increase. Disadvantaged and dependent smokers struggled with tobacco affordability and were more likely to smoke cheaper products, but disadvantage did not affect quit success. Limitations Different for each data set; triangulation increased confidence. Conclusions The tobacco industry overshifted taxes and increased revenues, even when tax increases were high. Therefore, tobacco taxes can be further increased to reduce price differentials and recoup public health costs. Government strategies on illicit tobacco appear effective. Large, sudden tax increases would reduce the industry’s ability to manipulate prices, decrease affordability and increase quitting behaviours. More disadvantaged, and dependent, smokers need more help with quitting. Future work Assessing the impact of tax changes made since 2014; changing how tax changes are introduced (e.g. sudden intermittent or smaller continuous); and tax changes on tobacco initiation. Funding This project was funded by the National Institute for Health Research (NIHR) Public Health Research programme and will be published in full in Public Health Research; Vol. 8, No. 6. See the NIHR Journals Library website for further project information.

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“…Price is a key component of tobacco marketing strategy and an important driver of smoking behaviour . Tobacco companies contend that the introduction of standardized packaging in the United Kingdom would leave price as the only marketing lever, leading to greater competition on price and, consequently, increased affordability and consumption .…”

Section: Introductionmentioning

confidence: 99%

Pricing of tobacco products during, and after, the introduction of standardized packaging: an observational study of retail price data from independent and convenience (small) retailers in the United Kingdom

et al. 2018

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Background and aims Tobacco companies claimed that standardized packaging, phased in/introduced May 2016–May 2017, would reduce prices and increase consumption. We: (1) describe changes in price‐per‐cigarette and price‐per‐gram during, and after, the introduction of standardized packaging; (2) describe price changes by cigarette price segment; and (3) analyse price changes by stage of implementation. Design An observational study, using electronic point‐of‐sale data, monitored price trends in three periods: (1) May–September 2016, start of transition period; (2) October 2016–May 2017, when fully branded and standardized products were sold and duty escalators implemented; and (3) June–October 2017, when standardized packaging was mandatory. Setting United Kingdom. Participants Small retailers (n = 500) stratified by region and deprivation. Data were monitored for 20 leading fully branded tobacco products [15 factory‐made cigarettes (FMC), 5 roll‐your‐own (RYO)] and their standardized equivalents. Measurement Price‐per‐cigarette and price‐per‐gram, based on monthly average Recommended Retail Price (RRP) and actual sale price, adjusted for inflation using the Consumer Pricing Index (CPIH). Net changes (£GBP, %) were analysed by product type (FMC versus RYO) and FMC price segment (value, mid‐price, premium). Findings Between May 2016 and October 2017, the average inflation‐adjusted RRP/price‐per‐cigarette and price‐per‐gram increased for FMC (all price segments) and RYO. For example, sales price‐per‐cigarette increased +4.64%, with the largest increases for value (+6.81%), premium (+5.32%) and mid‐price FMCs (+3.30%). Net sales price‐per‐cigarette and price‐per‐gram increases were largest in period 2, when fully branded and standardized products were sold and duty escalators were implemented (FMC = +4.70%; RYO = +3.75%). There were small decreases in sales price‐per‐cigarette and price‐per‐gram once standardized packaging became mandatory (FMC = –1.14%; RYO = –0.88%). Conclusion In the United Kingdom, the price of leading roll‐your‐own and factory‐made cigarette brands sold by small retailers increased as standardized packaging was phased in, with increases larger than expected through duty escalation.

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The relation between cigarette price and hand-rolling tobacco consumption in the UK: an ecological study

Cited by 27 publications

References 18 publications

Changes in roll-your-own tobacco and cigarette sales volume and prices before, during and after plain packaging legislation in the UK

Changes in roll-your-own tobacco and cigarette sales volume and prices before, during and after plain packaging legislation in the UK

Impact of tobacco tax increases and industry pricing on smoking behaviours and inequalities: a mixed-methods study

Pricing of tobacco products during, and after, the introduction of standardized packaging: an observational study of retail price data from independent and convenience (small) retailers in the United Kingdom

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