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Tobacco and Other Store-Based Retailing in Australia - Market Research Report (2014-2029)

Disha Kartik Jeswanth Disha Kartik Jeswanth Melbourne, Australia Last Updated: October 2024 ANZSIC G4279

Revenue

$14.6bn

2024-25

$14.6bn

Past 5-Year Growth

Profit

$X.Xbn

Employees

58,771

Businesses

14,877

Wages

$X.Xbn

Tobacco and Other Store-Based Retailing in Australia industry analysis

Several economic and regulatory factors have influenced the industry over the past few years. Increasing tobacco excises and cost-of-living pressures have curbed the smoking rate. Increasing illicit tobacco trade and a ban on vape sales outside pharmacies have cut into industry revenue. In contrast, expenditure on pet supplies has skyrocketed due to rising pet ownership. Duty-free stores that offer tobacco products also benefited from greater excises due to the absence of hefty tobacco taxes at these establishments. The duty-free stores segment has been on an upwards trajectory as travel bans have been lifted. Overall, industry revenue is expected to fall at an annualised 2.6% over the five years through 2024-25 to total $14.6 billion. This includes an anticipated fall of 2.7% in the current year.

Trends and Insights

  • Pet supply retailing is attracting plenty of investment interest. The segment has grown strongly over the past decade and has become increasingly profitable. Woolworths has acquired PETstock, and further acquisitions and expansions are expected.
  • Pet ownership soared during the COVID-19 pandemic, making the pet supplies segment the fastest growing in the industry. Movement restrictions meant people spent more time at home, encouraging many households to adopt a pet.
  • Boosted savings and booming pet supply demand encouraged many Victorian businesses to enter the industry. Industry establishments grew rapidly in 2020-21 and 2021-22, with almost half this growth attributable to Victoria, before falling in 2022-23.
  • Supermarkets are an effective competitor for industry retailers. Small specialty retailers in the industry often can’t compete with the large supermarkets’ prices. Instead, these retailers attempt to entice customers by offering a wider range of specialty products.

Access hundreds of analysis and data

  • Market estimates from 2014-2029
  • Critical performance data and rankings
  • Detailed analysis of competitive forces and the external environment
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Industry Statistics and Trends

Market size and recent performance (2014-2029)

Industry revenue has declined at a CAGR of 2.6 % over the past five years, to reach an estimated $14.6bn in 2024.

Trends and Insights

Tobacco excises and cost-of-living pressures have reduced smoking rates

  • In November 2013, the Federal Government announced it would increase the excise on tobacco products in four increments of 12.5% each. These annual excise increases were then extended to 2020 upon the release of the 2016-17 Federal Budget.
  • Additional trends and insights available with purchase
Tobacco and Other Store-Based Retailing in Australia
Revenue (2014-2029)
IBISWorld Logo Source: IBISWorld

Industry outlook (2024-2029)

Market size is projected to grow over the next five years.

Trends and Insights

Tobacconists will lose out on ecigarette revenue

  • Tobacco products are already low-margin products that rely on high turnover. As smoking rates continue to fall, industry tobacconists will struggle to maintain turnover in the coming years.

Biggest companies in the Tobacco and Other Store-Based Retailing in Australia

Company
Market Share (%)
2025
Revenue ($m)
2025
Greencross Group
1,561.4
Tobacco Station Group
1,231.3
PETstock
1,208.1

To view the market share and analysis for all 5 top companies in this industry, view purchase options.

Products & Services Segmentation

Tobacco and Other Store-Based Retailing in Australia
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Tobacco products, Pets and pet supplies and Swimming pool and spa equipment. Tobacco products is the largest segment of the Tobacco and Other Store-Based Retailing in Australia.

Trends and Insights

Tobacco products’ revenue share has dropped in line with rising health awareness

  • This segment includes cigarettes, cigars, vapes and other smoking paraphernalia.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

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.

What's included in this industry?

Tobacco productsDuty-free goodsAdult productsPets and pet suppliesSwimming pool and spa equipment

Companies

Greencross GroupTobacco Station GroupPETstock

Purchase this report to view all 5 major companies in this industry.

Related Terms

EXCISERECEIVERSHIPADULT PRODUCTSVAPE

Industry Code

ANZSIC 2006

ANZSIC 4279 - Tobacco and Other Store-Based Retailing in Australia

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

Pet supply retailing is attracting plenty of investment interest. The segment has grown strongly over the past decade and has become increasingly profitable. Woolworths has a...

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2014-2023) and forecast (2024-2029)
  • Employees, including historical (2014-2023) and forecast (2024-2029)
  • Businesses, including historical (2014-2023) and forecast (2024-2029)
  • Profit, including historical (2014-2024)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Key success factors for businesses to overcome volatility
  • How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

Pet ownership soared during the COVID-19 pandemic, making the pet supplies segment the fastest growing in the industry. Movement restrictions meant people spent more time at ...

In this chapter

  • Products & Services
  • Major Markets

Key metrics

  • Largest market segment and value in 2024
  • Product innovation level

Charts

  • Products & services segmentation in 2024
  • Major market segmentation in 2024

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

Boosted savings and booming pet supply demand encouraged many Victorian businesses to enter the industry. Industry establishments grew rapidly in 2020-21 and 2021-22, with al...

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each region
  • Share of population compared to establishments in each region in 2024

Tables

  • Number and share of establishments in each region in 2024
  • Number and share of revenue each region accounts for in 2024
  • Number and share of wages each region accounts for in 2024
  • Number and share of employees in each region in 2024

Detailed analysis

  • Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

Supermarkets are an effective competitor for industry retailers. Small specialty retailers in the industry often can’t compete with the large supermarkets’ prices. Instead, t...

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2019-2024
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

Detailed analysis

  • Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
  • Key success factors for businesses to manage the competitive environment of the industry.
  • Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
  • Key success factors for potential entrants to overcome barriers to entry.
  • Competitive threats from potential substitutes for the industry’s own products and services.
  • Key success factors for how successful businesses can compete with substitutes.
  • Advantages that buyers have to keep favorable purchasing conditions.
  • Advantages that suppliers have to maintain favorable selling conditions.
  • Key success factors for how businesses can navigate buyer and supplier power.

Companies

Learn about the performance of the top companies in the industry.

Analyst insights

The industry's two largest specialty pet retailers, PETstock and Petbarn, have been acquisition targets. Companies have seen them as a strong investment after a decade of sur...

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2020 through 2024
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2024
  • Overview of Greencross Group's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of Tobacco Station Group's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of PETstock's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of revenue, market share and profit margin trend for 2 additional companies

Detailed analysis

  • Description and key data for Greencross Group, and factors influencing its performance in the industry
  • Description and key data for Tobacco Station Group, and factors influencing its performance in the industry
  • Description and key data for PETstock, and factors influencing its performance in the industry
  • Description, key data and performance trends for 2 additional companies

External Environment

Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

Analyst insights

The tobacco products segment is the industry’s largest. As a result, a continuous decline in the Australian smoking rate is having a significant impact on industry revenue.

In this chapter

  • External Drivers
  • Regulation & Policy
  • Assistance

Key metrics

  • Regulation & policy level and trend
  • Assistance level and trend

Charts

  • Regulation & Policy historical data and forecast (2014-2029) 
  • Assistance historical data and forecast (2014-2029) 

Detailed analysis

  • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
  • Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
  • Key governmental and non-governmental groups or policies that may provide some relief for industry operators.

Financial Benchmarks

View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

Analyst insights

Demand for high-margin products in key segments has slowed. Industry profit margins have fallen slightly as consumers have stepped back from spending carelessly during the re...

In this chapter

  • Cost Structure
  • Financial Ratios
  • Key Ratios

Key metrics

  • Profit margin, and how it compares to the sector-wide margin
  • Average wages, and how it compares to the sector-wide average wage
  • Largest cost component as a percentage of revenue
  • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

Charts

  • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Investment vs. share of economy

Data tables

  • Cash Flow & Debt Service Ratios (2014-2029)
  • Revenue per Employee (2014-2029)
  • Revenue per Enterprise (2014-2029)
  • Employees per Establishment (2014-2029)
  • Employees per Enterprise (2014-2029)
  • Average Wage (2014-2029)
  • Wages/Revenue (2014-2029)
  • Establishments per Enterprise (2014-2029)
  • IVA/Revenue (2014-2029)
  • Imports/Demand (2014-2029)
  • Exports/Revenue (2014-2029)

Detailed analysis

  • Trends in the cost component for industry operators and their impact on industry costs and profitability 

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2014-2029)
  • IVA (2014-2029)
  • Establishments (2014-2029)
  • Enterprises (2014-2029)
  • Employment (2014-2029)
  • Exports (2014-2029)
  • Imports (2014-2029)
  • Wages (2014-2029)

Top Questions Answered

Unlock comprehensive answers and precise data upon purchase. View purchase options.

What is the market size of the Tobacco and Other Store-Based Retailing industry in Australia in 2024?

The market size of the Tobacco and Other Store-Based Retailing industry in Australia is $14.6bn in 2024.

How many businesses are there in the Tobacco and Other Store-Based Retailing in Australia industry in 2024?

There are 14,877 businesses in the Tobacco and Other Store-Based Retailing industry in Australia, which has grown at a CAGR of 3.4 % between 2019 and 2024.

Has the Tobacco and Other Store-Based Retailing industry in Australia grown or declined over the past 5 years?

The market size of the Tobacco and Other Store-Based Retailing industry in Australia has been declining at a CAGR of 2.6 % between 2019 and 2024.

What is the forecast growth of the Tobacco and Other Store-Based Retailing industry in Australia over the next 5 years?

Over the next five years, the Tobacco and Other Store-Based Retailing industry in Australia is expected to grow.

What are the biggest companies in the Tobacco and Other Store-Based Retailing market in Australia?

The biggest companies operating in the Tobacco and Other Store-Based Retailing market in Australia are Greencross Group, Tobacco Station Group and PETstock

What does the Tobacco and Other Store-Based Retailing in Australia include?

Tobacco products and Duty-free goods are part of the Tobacco and Other Store-Based Retailing industry.

Which companies have the highest market share in the Tobacco and Other Store-Based Retailing in Australia?

The company holding the most market share in Australia is Greencross Group.

How competitive is the Tobacco and Other Store-Based Retailing industry in Australia?

The level of competition is moderate and increasing in the Tobacco and Other Store-Based Retailing industry in Australia.

Related Industries

Widen your competitive advantage with related industries

Competitors

  • Department Stores in Australia
  • Supermarkets and Grocery Stores in Australia
  • Personal Accessory Retailing in Australia

Complementors

  • Tobacco Product Wholesaling in Australia
  • Prepared Animal and Bird Feed Manufacturing in Australia

International industries

  • Pet Stores in the US
  • Small Specialty Retail Stores in the US
  • Small Specialty Retail Stores in Canada
  • Specialised Grocery Retailing in New Zealand
  • Tobacconists in the UK

View all industries in Australia

Methodology

How are IBISWorld reports created?

IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.

Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.

IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.

What data sources do IBISWorld analysts use?

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

Key data sources in Australia include:

  • Australian Bureau of Statistics
  • Australian Taxation Office
  • Australian Securities & Investments Commission

Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

These sources include:

  • Industry and trade associations
  • Industry federations or regulators
  • Major industry players annual or quarterly filings

Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

How does IBISWorld forecast its data?

IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.

IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.

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