Pete Wargent blogspot

CEO AllenWargent Property Buyers, & WargentAdvisory (institutional). 6 x finance author.

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Sunday, 7 December 2014

Record Low for Smokes

The population of Australia is increasing at close to 400,000 persons per year lately.

Generally, consumption of goods is therefore expected to increase.

But here is one bright spot for the "health" of the economy: the National Accounts showed that cigarette and tobacco consumption continued to fall to its lowest ever level across the entire ABS data series which runs from 1959,

The Tobacco Plain Packaging Act 2011, which received Royal Assent in late 2011, required that all tobacco products sold in Australia be sold in plain packaging from 1 December 2012, an important stand against the tobacco companies being taken by the Gillard government.

Whether due to plain packaging or other awareness, something is working, with consumption in chain volume measures terms declining by another 2.2 percent in the third quarter to be down by more than 8 percent over the past year.

Seasonally adjusted quarterly expenditure has fallen to below $3500 million from the heady peaks of above $8300 million in smoking's heyday of 1975. 

A colossal decline since that time, but still some way to go...