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Tag: cigarette market

  • BoA Data Shows Shift from Cigarettes to Oral Nicotine Products

    BoA Data Shows Shift from Cigarettes to Oral Nicotine Products

    Bank of America’s latest four-week scanner data through May 30 showed continued volume declines across most U.S. tobacco categories, while oral nicotine products remained the industry’s strongest growth segment, according to Investing.com. It said industry cigarette sales fell 3.3%, with volumes down 7.4%, while vapor sales declined 17.2%. In contrast, oral tobacco sales increased 5.8%, driven by a 0.4% rise in volume and a 5.4% improvement in price mix.

    Among major manufacturers mentioned in the article, British American Tobacco delivered the strongest oral nicotine performance, with sales up 28.3% and share gains of 590 basis points, while vapor sales increased 8.8%. Altria gained 20 basis points of cigarette share despite a 6.9% volume decline, but continued to lose share in vapor and oral products. Philip Morris International reported modest 0.6% growth in oral tobacco sales ahead of the U.S. rollout of Zyn Ultra, while Imperial Brands posted 34.6% growth in smokeless and oral products. Japan Tobacco was the only major manufacturer to record cigarette volume growth, with cigarette sales rising 2.6% and share increasing by 70 basis points.

  • New Report Predicts 17% Increase in Cigarette Market by 2032

    New Report Predicts 17% Increase in Cigarette Market by 2032

    Research and Markets released a new industry report today (June 9), projecting that the global cigarette market will grow from an estimated $637.7 billion in 2025 to $748.1 billion by 2032, representing a compound annual growth rate (CAGR) of 2.3%. The report highlights continued demand across global markets, with the flavored cigarette segment expected to reach $457.6 billion by 2032, while unflavored products are forecast to grow at a faster 3.1% CAGR. The U.S. cigarette market was valued at $197.3 billion in 2025, while China is projected to expand at a 4.2% CAGR to $162.5 billion by 2032. The report cites factors including affordability, cultural acceptance, peer influence, celebrity endorsements, and ongoing marketing efforts as key drivers of consumption. The 631-page report sells for $5,850.

  • JTI Sees Shift to Cheaper Cigarettes Continuing

    JTI Sees Shift to Cheaper Cigarettes Continuing

    To combat decreasing volumes, many cigarette companies are forced to increase prices to keep the needed revenue margins. That, combined with continuously rising federal and state taxes, has made buying a pack of cigarettes in the United States quite expensive. As a result, many smokers are leaving traditional premium name brands and trading down to the value and super-vale segment of the market.

    Japan Tobacco International’s finance chief Vassilis Vovos said he expects pricier brands to continue losing ground even as affordability improves, and that the shift toward cheaper cigarette brands in the U.S. will top 42% of the market by 2027.

    JTI completed the acquisition of U.S. tobacco company Vector Group last year, which pushed its share of the super-value segment to 40% by the fourth quarter of 2024.

    “This is a hard trend and we see it continuing over time,” Vovos said, adding steep price increases will continue to push consumers to trade down, a trend visible in many markets where big price gaps emerge.

    Industry giants such as Altria and BAT hope the trend away from premium brands is temporary and will recede as economic pressures ease. BAT, which does not produce a product for either of the value markets, saw its U.S. volume fall 10.1% last year.