In 2024, Lithuania’s tobacco market continued its transformation, marked by a persistent decline in traditional cigarette use and a generational shift in consumption habits. Consumers are moving away from smoking not necessarily by quitting altogether, but by substituting with newer nicotine formats, most notably single use vapes and heated tobacco. These alternatives are perceived as more modern, less harmful, and better aligned with shifting lifestyles. Regulatory pressures, such as the 2023 flavour ban, and rising excise taxes have reshaped product availability and pricing, accelerating this transition. While heated tobacco began to show signs of saturation, disposable vapes continued their rapid ascent, especially among younger users, despite rising prices and concerns about illicit trade. Economic uncertainty and price sensitivity have also played a role, prompting some users to trade down or exit the market altogether. Overall, the industry is becoming more fragmented and dynamic, with traditional categories losing ground to more adaptable, convenience-driven products.
Cigarette consumption in Lithuania continued its steady decline in 2024, driven by a mix of structural, regulatory, and behavioural shifts. Smoking is increasingly seen as outdated, especially among younger adults, who are turning to alternative nicotine products or avoiding nicotine altogether. The government’s consistent excise hikes, along with broad public health campaigns and stricter smoking restrictions, have made cigarettes less accessible and less socially acceptable. While illicit trade remains a concern, its share in overall consumption has not grown, suggesting enforcement measures are having some effect.
Philip Morris International (PMI) was the leading player across multiple tobacco categories in Lithuania in 2024. The country serves as a key regional market for the company due to its large-scale cigarette production facility located in Klaipeda, which provides logistical advantages. As the leader in cigarettes, PMI also pioneered and drove the growth of the heated tobacco category in Lithuania. While competitors, including Japan Tobacco International (JTI) and British American Tobacco (BAT), have challenged PMI’s position in heated tobacco, the company maintains a strong lead thanks to its TEREA product line.
Across all tobacco categories - cigarettes, cigarillos, cigars, smoking tobacco, and heated tobacco - the majority of sales in 2024 continued to go through offline retail, with supermarkets, hypermarkets, and convenience stores playing central roles. While e-commerce remains negligible, forecourt retailers and convenience chains gained slight share in heated tobacco and cigarettes, indicating the growing relevance of fast-access formats. In essence, traditional retail remains the undisputed backbone of tobacco sales in Lithuania, with only limited disruption from online or non-retail avenues.
While the overall tobacco market in Lithuania is projected to contract in volume terms over the forecast period, this trend will be uneven across categories. Traditional cigarette consumption is set to decline steadily due to increasing restrictions, tax hikes, and generational shifts in usage patterns. However, perceived reduced-risk products, such as tobacco heating devices and closed system single use e-cigarettes, are expected to see further uptake, particularly among urban adult smokers seeking alternatives to combustible products. The popularity of disposable vapes (e.g. Salt Switch and Whoop) and heated tobacco products (e.g. Iqos and Glo) reflects a strong interest in convenience, novelty, and perceived harm reduction. This trend is also supported by product innovation, improved availability, and targeted brand positioning.
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Understand the latest market trends and future growth opportunities for the Tobacco industry in Lithuania with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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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.
See all of our definitionsThis report originates from Passport, our Tobacco research and analysis database.
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