Europe Tobacco Products Market Outlook, 2028

The market for tobacco products in Europe is a vibrant, intricate, and historically rich sector of the economy. Although there has been a noticeable shift in the market in recent years, tobacco usage is still popular despite growing awareness of the health dangers connected with it. Many European nations have strong cultural ties to tobacco and have long-standing customs surrounding smoking and using tobacco products. Tobacco products continue to be popular because of this cultural association. Significant technological improvements in the sector have led to the creation of heated tobacco products and e-cigarettes, for example. These developments have given customers options that they see as less dangerous than conventional cigarettes, which has led to growth in these market categories. E-cigarettes have grown in popularity because people believe they are a safer alternative to traditional cigarettes. When a liquid containing nicotine and other ingredients is heated, an aerosol is created that users inhale. They provide a similar hand-to-mouth motion and smoking-like sensation, making them a desirable option for tobacco users who want to cut back or quit. The e-cigarette market has experienced significant expansion, which is being fueled by a number of causes, including rising health concerns, shifting customer preferences, and technological advancements in device design. The relationship between stress, mental health problems, and cigarette use has grown. Smoking is a common coping strategy for stress and anxiety. As public knowledge of mental illness rises, the cigarette business is exploring ways to address these concerns through products that can provide stress relief without the harmful effects of traditional cigarettes. Snus and snuff are smokeless tobacco products that have become increasingly popular in various European nations, particularly in Scandinavia. While not being burned or breathed, these materials are placed in the mouth. They are typically thought to be less dangerous than cigarettes, and in some places, using them is regarded as culturally acceptable. The market for smokeless tobacco could expand further, particularly if customers view these products as a less dangerous choice.

According to the research report, “Europe Tobacco Product Market Outlook, 2028” the market is expected to add more than USD 35 Billion from 2023 to 2028. The market for tobacco products in Europe is not just restricted to Western European nations; Eastern and Southern European markets are also showing increasing promise. Economic development and changing customer tastes in these areas create prospects for the tobacco industry. Businesses are looking for ways to increase their market share in these developing nations. In the European tobacco market, a prominent trend is the increased focus on harm reduction. Customers are looking for goods more and more often that can provide a satisfying cigarette experience with fewer health dangers. As a result, new low-risk products have been created, and tobacco harm reduction has received more attention. The single market of the European Union makes it easier for commodities, including tobacco products, to circulate freely. The effects of cross-border trade within the EU can have an impact on market dynamics, with consumers often purchasing cheaper tobacco products in neighbouring countries with lower taxes. This leads to variations in market demand and pricing. The cultivation of tobacco plants is a major component of the tobacco industry's dependence on agriculture and farming. Tobacco is grown by European farmers, who also make money from it, supporting many rural communities. From planting and harvesting through processing, the economic activities related to tobacco growing support regional economic growth. The creation of tobacco products depends heavily on the manufacturing and packaging industries. Numerous factories producing tobacco products, including cigarettes, cigars, and smokeless tobacco, may be found in European nations. These manufacturing procedures encompass a variety of businesses, from machinery and automation to packaging graphic design, and they boost the economy and create job possibilities.

Based on report market is divided into six major countries Germany, United Kingdom, France, Italy, Spain and Russia. Among them Germany accounts for sizeable market for tobacco products in Europe.

The market for tobacco products in Germany is one of the biggest and most significant in all of Europe. It has a long history and is deeply established in the culture of the nation. Germany's culture is deeply intertwined with tobacco use, mainly through cigarettes and pipes. It has long been a part of the history of the country. This cultural practice continues to increase demand for tobacco products, despite health issues and legal restrictions. Germany has a comparatively low tax rate on tobacco-related goods when compared to other European nations. Because of this, smokers both domestically and internationally find it to be a desirable market. Retaining demand is greatly aided by competitive pricing. Customers seeking alternatives to traditional cigarettes are increasingly turning to e-cigarettes and other vaping goods. There are numerous cigarette manufacturing facilities in Germany that produce both domestic and foreign brands. Many of the cigarettes consumed throughout Europe, including other European countries besides Germany, are produced in these factories. The nation is a desirable location for cigarette production due to its effective manufacturing techniques and trained workforce. Cross-border customers are drawn to Germany because of its more lenient cigarette tax regime than other European nations. People from neighbouring countries have flocked to Germany to buy tobacco at lower rates as a result, creating a thriving border trade. Numerous tobacco-related occasions and trade exhibits are held in Germany, including the Dortmund InterTabac event. People from all around the world who are interested in tobacco, business leaders, and retailers attend these events. Serving as a venue for presenting new goods, networking, and cultivating business contacts in the tobacco sector.

Based on product market is bifurcated into cigarette, smokeless tobacco, cigars and cigarillos, next generation products and kretek. Cigarette product type is leading the market of Europe with significant market share.

Cigarettes are very portable and convenient. They are a popular option for consumption while traveling because they are convenient to carry and come in standardized packaging. This element of ease has aided in their enduring consumer appeal. In many European nations, cigarettes hold significant cultural and social value. The act of smoking at coffee breaks, after meals, or during social events has been linked to rituals, customs, and traditions. It has been difficult to overcome this cultural dependence on smoking. In many European nations, compared to other tobacco products or expensive cigars, cigarettes are quite inexpensive. Due to their accessibility to a wide range of consumers, including those who are price-sensitive, they continue to be affordable. Through a vast distribution network, which includes convenience stores, petrol stations, and specialized tobacco shops, cigarettes are widely accessible. This availability guarantees that customers may easily buy cigarettes, thereby solidifying their market dominance. Consumer habits and behaviors are frequently difficult to alter. It can be challenging for many people who have smoked cigarettes for years to convert to other products or stop altogether. The comfort and familiarity of smoking contribute to its enduring supremacy.

In terms of distribution channel market is segmented into speciality store, hypermarket/ supermarket, convenience stores, online and others. Among them speciality store dominates the Europe tobacco products market.

Specialty stores sell a wide variety of tobacco products, catering to the tastes of aficionados and connoisseurs. They carry a wide range of cigarette brands, cigars, pipe tobaccos, smokeless tobacco, and even newer goods such as e-cigarettes and heated tobacco devices. Customers benefit from the vast selection by having selections that are not available at ordinary retailers. Aside from tobacco products, specialty stores frequently stock a variety of accessories, such as humidors, pipes, lighters, and specialist filters. These accessories improve the whole client experience, and specialized businesses are better positioned to provide expert advice on selecting the proper accessories to complement their tobacco selections. Customers can typically get a higher level of customization and personalization at specialized retailers. This includes their ability to integrate their own pipe tobacco, choose from a variety of rolling papers and filters, or even receive personalized recommendations based on their taste preferences. Such tailored experiences are less common in general retail outlets. Specialty stores foster a sense of community and networking among tobacco enthusiasts. Events like cigar tastings, pipe-smoking competitions, and tobacco-related workshops create a social hub for like-minded individuals to connect. These community-building efforts enhance customer engagement and loyalty.

Companies Covered in this report:

British American Tobacco plc, Scandinavian Tobacco Group, Imperial Tobacco Group plc, The Japan Tobacco Inc., Korea Tobacco & Ginseng Corporation (KT&G), Habanos S.A, Arnold Andre GmbH & Co. KG, ITC Limited, Tabacos Monte Paz.

Considered in this report:

• Geography: Europe
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report:

• Europe Tobacco Product market Outlook with its value and forecast along with its segments
• Country-wise Tobacco Product market analysis
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Country covered in the report:

• Germany
• United Kingdom
• France
• Italy
• Spain
• Russia

By Product:

• Cigarette
• Smokeless Tobacco
• Cigar and Cigarillos
• Next Generation Products
• Kretek

By Distribution Channel:

• Speciality Store
• Hypermarket/supermarket
• Convenience Stores
• Online
• Others

Intended audience:

This report can be useful to industry consultants, manufacturers, suppliers, associations, and organisations related to the Tobacco Product industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.