Cigarettes and Alternative Nicotine Products in Western Europe

August 2024

Cigarette sales were in decline across Western Europe in 2023, but increased slightly at a regional level due to the strong growth in Turkey, where illicit trade was falling and the smoking population was growing. Sales of next-generation products continue to grow in Western Europe, with even an upcoming ban on disposable vapes in the UK, their biggest regional market, not expected to significantly impact this trend, with Italy remaining the leading market for heated tobacco products regionally.

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Key Findings

Rising prices see smokers cutting down, quitting or looking for alternatives

Rising prices, due to the global inflationary environment and ongoing tax hikes, increasing health awareness and competition from next-generation products is resulting in declining unit volume sales of cigarettes across most of Western Europe, with little likelihood of this changing over the forecast period.

Ban to bring an end to the disposable vapes boom in the UK

Although slower than in the two previous years, closed-system single-use vaping products were still recording dynamic growth in the UK in 2023. However, with concerns about the throwaway nature of disposable vapes as well as their attraction to underage smokers, the UK government announced a ban on these products from early 2025, which will necessitate industry players pivoting their focus towards open and other closed vaping products.

Strong growth for nicotine pouches in Finland

The nicotine pouches category is expected to see strong growth over the forecast period. Sweden will continue to be the leading country market in Western Europe, but Finland is expected to take over from Denmark as the second biggest in the region over 2023-2028. This is due to the Finnish authorities deregulating the sale of these products in mid-2023.

Heated tobacco products expected to continue growing

Heated tobacco products will be accounting for just over half of overall smokeless tobacco, e-vapour products and heated tobacco sales at the end of the forecast period, having recorded further growth in the coming years. PMI continues to drive the development of the category, rolling out its new Iqos ILUMA devices and TEREA sticks across the region, with the other tobacco giants also present with devices like Ploom (JTI), Glo (BAT) or Pulze (Imperial Brands).

Scope
Key findings
Cigarette sales declining in 2018-2023 in Western Europe
Western Europe has a high per capita rate for next-generation products
Declining sales expected in Western Europe in the coming years
Growth will slow but remain relatively dynamic for next-generation products
Sales declining everywhere but Turkey in Western Europe in 2018-2023
Italy drives heated tobacco growth, while the UK experiences a disposable vaping boom
Inflation, tax rises, illicit trade and new products depress UK demand for cigarettes in 2023
Strong growth for Swedish-style snus in Norway, but regulation on its way
Dynamic growth recorded by fine cut cigarettes in Turkey over 2018-2023
Strong growth in cigarette sales in Turkey in 2023
Dutch authorities gradually restricting cigarette sales to specialist outlets
Heated tobacco products add the bulk of new sales in Western Europe over 2018-2023
Italy leads heated tobacco and the UK e-vaping, but disposable vape ban looms in the latter
Food/drink/tobacco specialists and small local grocers the two biggest channels
Convenience retail leads distribution of cigarettes in Germany
Vape shops, e-commerce and convenience retail lead e-vapour products sales in the UK
Food/drink/tobacco specialists the key channel for sales of heated tobacco products
The competitive landscapes for cigarettes remain extremely concentrated across the region
Major players’ foray into fine cut tobacco not a great success in Turkey
PMI, JTI, BAT and Imperial Brands present across the region
Parliament moving up the rankings over 2018-2023
PMI dominates heated tobacco, while Shenzhen Imiracle Technology leads e-vaping
Only Turkey will record unit volume growth in cigarette sales over the forecast period
Cigarette sales to decline by 54 billion units in Western Europe over the forecast period
Continued growth expected for next-generation tobacco products
Heated tobacco will drive actual sales growth in the overall category
Nicotine pouches to see dynamic growth in Finland over 2023-2208
Austria: Market Context
Austria: Competitive and Retail Landscape
Belgium: Market Context
Belgium: Competitive and Retail Landscape
Denmark: Market Context
Denmark: Competitive and Retail Landscape
Finland: Market Context
Finland: Competitive and Retail Landscape
France: Market Context
France: Competitive and Retail Landscape
Germany: Market Context
Germany: Competitive and Retail Landscape
Greece: Market Context
Greece: Competitive and Retail Landscape
Ireland: Market Context
Ireland: Competitive and Retail Landscape
Italy: Market Context
Italy: Competitive and Retail Landscape
Netherlands: Market Context
Netherlands: Competitive and Retail Landscape
Portugal: Market Context
Portugal: Competitive and Retail Landscape
Spain: Market Context
Spain: Competitive and Retail Landscape
Sweden: Market Context
Sweden: Competitive and Retail Landscape
Switzerland: Market Context
Switzerland: Competitive and Retail Landscape
Turkey: Market Context
Turkey: Competitive and Retail Landscape
UK: Market Context
UK: Competitive and Retail Landscape

Tobacco

Passport Tobacco covers the seven major tobacco categories: Cigarettes, Cigars & Cigarillos, Smoking tobacco (made up of Pipe tobacco and RYO tobacco), Smokeless Tobacco (snuff and chewing tobacco), E-Vapour Products (closed and open); Heated Tobacco; and Tobacco Free Oral Nicotine. Smoking paraphernalia such as pipes, rolling papers, lighters or matches, etc., are not included, nor are nicotine replacement therapy (NRT) products, which are part of Euromonitor's Passport Consumer Healthcare database.

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