EAE Business School is pleased to present its research study entitled “Expenditure on tobacco, alcohol and gambling 2015”, an analysis of the consumption of tobacco, alcoholic drinks and gambling in the main international economies, Spain as a whole and in each Autonomous Community. The aim of this study is to gain detailed insight into consumption and the consumer profile, thereby enabling us to identify the differences between countries y Autonomous Communities.
The general conclusion drawn from this report is that each Spaniard consumes 2,481 cigarettes and 113 litres of alcoholic drinks per year. Moreover, other key conclusions include the fact that, last year, the alcohol consumption (in litres) of Spaniards fell by 4.27%, down to 113 litres. In terms of Autonomous Communities, the inhabitants of the Basque Country, Catalonia and Murcia spend the most money on alcoholic drinks, while the people of Castilla y León, Asturias and the Basque Country spend the most on gambling. With regard to smoking, women smoke more than men and the Autonomous Communities that spend the most on tobacco in Spain per year are Extremadura, Madrid and Cantabria.
With respect to international statistics, the typical Spaniard spends €70 on alcohol, compared to an average of €75 spent in other countries. In terms of tobacco consumption, The Spanish spend €163 compared to €132 in other countries. The countries that spend most on tobacco are Ireland, Greece and the United States, while the nationalities that drink most are the Czechs, the Irish and the Austrians . Lastly, Canada, Italy and Japan are the three countries with the highest spending per capita on gambling.
SPENDING ON TOBACCO
According to el report de EAE, expenditure per person on tobacco per person in Spain last year rose to €282.39, representing an increase of 37% with respect to 2013. The consumption of cigarettes climbed to 2,481 per capita per year, which is equivalent to 124 packets per person or 6.8 cigarettes per day. Spain ranks in second place in the top 5 worldwide in terms of smokers, alongside Greece, Bulgaria, Poland and the Czech Republic.
In terms of the Autonomous Communities, Extremadura, Madrid and Cantabria spend the most money on tobacco in Spain, with an average annual expenditure per person of €218, €201 and €188 per person, respectively. The regions that spend the least money on tobacco are the Canary Islands, Navarra and Catalonia, with averages per capita of €90.61, €116.81 and €126.72, respectively. The greatest growth in tobacco consumption was recorded in Extremadura, Cantabria and Basque Country, with increases of 7.02%, 6.59% and 5.33%, respectively. The Autonomous Communities that registered decreases in consumption were Murcia, Andalusia and the Balearic Islands, where average spending per capita fell by 2.91%, 2.64% and 1.77%, respectively.
The study conducted by EAE Business School reveals that spending on alcohol consumption in Spain last year was equivalent to €686 per person. In terms of volume, Spain ranks somewhere around the middle at a global level, with an alcohol consumption per capita of 113 litres, which represents a fall of 4.27% with respect to the 118 litres that Spaniards consumed on average in 2013. In other words, expenditure on alcohol has increased more than consumption in terms of volume. This consumption per person is equivalent to each Spaniard drinking 2.17 litres of alcohol per week, which is higher than neighbouring countries such as Italy, Portugal and France, but lower than strong economies such as Finland, the United Kingdom and Germany.
In terms of analysing the situation by Autonomous Community, EAE’s research reveals that it is the people from the Basque Country, Catalonia and Murcia that spend most on alcoholic drinks, with a consumption per capita of €82, €77 and €73 per year, respectively. The regions that spend least on alcohol per capita are the Canary Islands, Extremadura and Cantabria, with an average alcohol consumption per person of €45, €50 and €51, respectively. Last year, the Autonomous Communities that registered a fall in average spending per person on alcohol were the Canary Islands, Navarra, Cantabria and the Balearic Islands, with decreases of 6.90%, 4.34%, 1.53% and 0.18%, respectively. The Autonomous Communities that recorded the greatest growth in expenditure on alcohol per person were Asturias, Murcia and Castilla y León, with increases of 5.07%, 4.67% and 3.70%, respectively.
THE GAMBLING INDUSTRY
According to the research published by EAE, each Spaniard spends an average of €77 on gambling and casinos per year, a level that places them at the bottom of the international ranking as one of the countries that spends the least money gambling, alongside Belgium and China. Nevertheless, the average expenditure on gambling in Spain has risen by 11% since 2007.
In terms of the Autonomous Communities, people from Castilla y León, Asturias and the Basque Country gamble most in Spain, with an average expenditure per person of €96, €85 and €74 per year respectively. The Autonomous Communities that spend least on gambling are the Canary Islands, the Balearic Islands and Catalonia, with average of €38, €40 and €55, respectively. Large differences can be observed between Autonomous Communities, with people from Castilla y León spending double the amount on gambling as people from the Canary and Balearic islands.
WHAT IS THE AVERAGE PROFILE OF A TOBACCO AND ALCOHOL CONSUMER?
The average profile of an alcohol consumer in Spain is a man aged 65 or over with university studies at graduate or postgraduate level . In contrast, the average profile of a smoker in Spain is a woman aged between 45 and 64 years, with a junior high school education.
An interesting fact is that foreigners living in Spain spend less money on tobacco and more on alcohol than Spaniards. Last year, Spaniard spent an average of €70.2 per person on alcohol, while foreigners spent an average of €74.56. In terms of tobacco consumption, the trend is inverted, with Spaniards spending €163.36 on average compared to €132.15 in the case of foreigners.
THE INTERNATIONAL SITUATION IN TERMS OF CONSUMPTION OF TOBACCO, ALCOHOL AND GAMBLING
According to the report drafted by EAE, in terms of tobacco consumption, people from Ireland, Greece and the United States spend most money on tobacco, with an average expenditure of €574, €423 and €384, per person, respectively. At the opposite end of the scale, we find the Mexicans, Brazilians and Bulgarians, with more modest figures of €35, €58 and 92€. The countries in which most cigarettes are smoked per capita are Greece, Spain, Bulgaria and Poland, with averages of 2,812, 2,481, 2,443 and 2,399 cigarettes, respectively. The nations that smoke the fewest cigarettes are Mexico, Brazil, Holland and Sweden, with a consumption per capita of 422, 690, 849 and 866 cigarettes, respectively.
With respect to alcohol consumption, the Irish, Czechs and Austrians are the world’s biggest consumers of alcohol, with each person drinking an average of 170, 168 and 148 litres, respectively. At the opposite end of the spectrum, with the lowest figures, we find India, China and Brazil, with consumptions per capita of 3, 42 and 61 litres, respectively. Spain ranks somewhere in the middle at a global level, with an average alcohol consumption of 113 litres per person per year. In terms of spending per capita, the nationalities that spend the most on alcohol are the Irish, Slovenians and Germans,spending an average of €1,354, €1,164 and €1,100, respectively. The countries in which people spend the least money on alcohol are India, China and Mexico, with averages of €32, €100 and €176. Once again, Spain ranks somewhere around the middle at €686, above countries like Sweden, Holland, the United States and Japan, but lower than the United Kingdom, France and Portugal.
Lastly, the three countries that recorded the highest consumption figures in terms of gambling per capita were Canada, Italy and Japan, with averages of €386 €304, and €267, respectively. At the opposite end of the scale, we find China, Belgium and Spain, the three countries with the average spending on gambling per capita lower than €80, at €64, €75 and €77, respectively.
“Tobacco, alcohol and gambling have traditionally been considered safe sectors that are resilient against difficult economic times, from an investor’s perspective. As a general rule, they have historically been seen as anti-cyclical sectors with practically inelastic demand. In other words, in these sectors, a price rise does not have a negative impact on the number of units sold. In this study, which EAE’s Strategic Research Centre has been running since 2011, it becomes clear that this is not the case, or at least not in all countries. For example, it can be observed that consumption in these sectors has decreased in recent years, despite the improving economic situation” says Juan Aitor Lago, Director of EAE’s Strategic Research Centre and head researcher on the project.