In 2024, tobacco in the Netherlands recorded a retail value decline, impacted by increasingly stringent government policies, which remained an influential force impacting market performance. Multiple hikes in excise duties have driven up prices across all tobacco products, placing additional financial strain on consumers. In addition, the expansion of smoking bans in public places has further restricted opportunities for consumption, reinforcing downward momentum in volume sales. Finally, the reduction of channels where tobacco and nicotine products are sold, placed further downward pressure on sales.
In 2024, total tobacco and nicotine product sales in the Netherlands recorded a volume decline. The sharpest decline was in cigarettes, with e-vapour products recording a modest fall while heated tobacco products was the only category to post a slight uplift in volume growth. The substantial excise tax hike in April 2024 on cigarettes and rolling tobacco, which followed excise increases in 2023, negatively impacted sales. As such, tobacco prices are now influencing purchasing behaviour, with smoking prevalence decreasing, and cross border sales rising.
Philip Morris Holland BV was the leading company in 2024, recording an uplift in share. This result was supported by strong brand recognition and loyalty to its key brands, including Marlboro, L&M, and Chesterfield. Successive excise hikes have narrowed the price gap between premium and economy cigarettes, reducing the incentive for smokers to trade down. As a result, Philip Morris's market share has benefited, with consumers favouring familiar brands over cheaper, lesser-known alternatives. Additionally, the player's investment in heated tobacco products, like IQOS, positions it to capture shifting preferences among smokers seeking alternatives to traditional cigarettes. Royal Agio Cigars NV was the most dynamic company in 2024, recording high single-digit growth and an uplift in volume share. The player leads cigars and cigarillos, offering brands including Mehari's, Panter, Balmoral, Agio and De Huifkar.
Forecourt retailers have emerged as a key channel for tobacco and nicotine product sales in the Netherlands, particularly following the legislative ban on tobacco and vapour product sales in supermarkets, which came into force in July 2024. As traditional grocery retailers were phased out as a point of sale, many consumers shifted their purchases to forecourt outlets, driving a noticeable uplift in traffic and transaction volume in this channel.
Within cigarettes and smoking tobacco, volume declines are set to continue over the forecast period, as the impact of continued tax increases, the declining smoking population, and expanding smoking bans challenge sales. E-vapour and heated tobacco products will offer some offsetting growth, especially among smokers seeking alternatives. However, these categories will also be subject to growing regulation, including flavour bans and, restricted sales channels and potential excise taxes. The net effect will be a continued contraction of overall market volume.
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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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