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Global Kretek Market Insight2022-01-06 Comments
Global Kretek Market has witnessed growing treads over the five years. According to the World Knowledge Information (WKI)Global Kretek Market Report 2020, Forecast to 2025. The compound annual growth rate (CAGR) for the 2020-2026 period is projected to be 3.97% base on WKI regression analysis model. As to labor costs rise, the share of hand-rolled Kretek will drop to a certain extent，on the contrary, the share of machine-made Kretek will have a good take off. Due to the further outbreak of the COVID-19 epidemic, companies that produce Kretek have to close their doors to protect employees. This situation will further increase the proportion of kretek’s mechanization. And the bankruptcy of a large number of small companies will also increase the market share of leading companies.
” Indonesia is poised to fight the NCD epidemic by reducing tobacco use through aggressive tobacco control measures including significant increases in tobacco taxes. In this case, Kretek’s market share growth will be a long-term process .” said Wikky, Senior analyst, Cigarette Market Research Center in WKI. However, when Kretek market participants are pursuing market share, they also need to consider the age group of sales, harm to the body, addiction, etc.
According to WKI Kretek Market Research Report. Affected by the COVID-19 in 2020, the Hand-rolled Kretek has received a very serious impact, In sharp contrast，the sales of machine-made Kretek increased by 25%. During the COVID-19 pandemic, due to the characteristics of non-contact, low labor cost, rapid production, and high output of machine-made kretek, it has been loved by Kretek manufacturers and customers during the COVID-19 period. Hand-made Kretek manufacturers also quickly changed their minds and quickly added Kretek’s production line for machine manufacturing.
The market is monopolized by large companies and these participants have a large customer base. Leading companies had a great influence on the market, because their Kretek products have been well received at home and abroad, and have a deep corporate moat. Some leading companies will be included in our report: British American Tobacco，Japan Tobacco，DJ arum and others.
In the Kretek market share, Machine-made Kretek occupies a considerable share. Machinery manufacturing Kretek is the main model and development direction of Kretek in recent years. Due to cost, companies are more willing to produce machine-made Kretek and hope to obtain more profit. In this case, machine-made Kretek is more and more adopted.
The Asia-Pacific region occupies a considerable part of the Kretek market, represented by Indonesia and China. Indonesia is the world’s largest producer of clove cigarettes, and exports up to US$500 million of the product a year. Kretek cigarettes are among others sold in Germany, France, Australia, Brazil etc. In Europe only smaller packs and thinner cigarettes are sold to adhere to the EU established maximum amount of nicotine and tar levels. In South Africa they are also sold in smaller packs of 10 with between 10–12 mg tar, and 1-1.2 mg nicotine. As people’s awareness of the dangers of smoking continue to deepen and pay attention to their own health maintenance, the growth rate of Kretek will slow down . We hope that companies producing Kretek in the future will also launch cigarette products of low addictive and harmful properties to meet consumer demand.