Cigarettes and Alternative Nicotine Products in Western Europe

February 2024

Cigarettes were in decline in Western Europe in 2022, but sales of next-generation products were increasing – with this expected to continue in the coming years. Disposable vapes recorded dynamic growth in the UK, the region’s biggest e-vapour products market. Italy, the leading market for heated tobacco products, continued to record strong growth of these products, despite already accounting for half of regional sales. Sweden and Denmark are driving the regional performance in nicotine pouches.

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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 – or, in Turkey, cheaper fine cut tobacco – is resulting in declining unit volume sales of cigarettes across most of Western Europe, with little likelihood of an end to this situation in the near future.

Dynamic growth in the UK for closed system single use products

Another year of very strong sales of disposable vapes saw them become the leading category in e-vapour products in the UK in 2022. New product launches, competitive prices, a wide range of flavours and convenience are among the factors driving this growth in single use vape sales, which are proving popular with both existing and new users.

PMI the new leader in snus after its Swedish Match acquisition

Philip Morris International has taken over Swedish Match, the leading player regionally in Swedish-style snus, also holding a presence in nicotine pouches. Pouches were already a familiar format among Swedes, thanks to the well-developed snus product – and the entrance of nicotine pouches is proving more attractive to women, as snus is mainly used by men.

Heated tobacco products expected to continue growing

Heated tobacco will be accounting for two thirds of overall smokeless tobacco, e-vapour products and heated tobacco sales by the end of the forecast period, compared with just under half at its start. Most countries will see strong growth, including Germany and UK, but Italy will continue to dominate this product area, with PMI currently in pole position in the category.

Scope
Key findings
Cigarette sales in decline in Western Europe
Western Europe has a high per capita rate for next-generation products
Declining sales expected in Western Europe over the forecast period
Growth will slow but remain dynamic for next-generation products
Sales declining in most Western European markets over 2017-2022
Italy and Germany drive heated tobacco growth as disposable vaping booms in the UK
Strong performance in Norway in 2020 as smokers buy at home instead of in Sweden
Boom in disposable vapes in Germany, but other vaping products are in decline
Fine cut cigarettes seeing dynamic growth in Turkey
Inflation, higher taxes and switch to fine cut tobacco hits demand for cigarettes in Turkey
Higher taxes and pressure on household budgets see Germans opting for larger pack sizes
Heated tobacco products become the major category in Western Europe over 2017-2022
Italy the leading heated tobacco market in Western Europe
The UK leads sales of e-vapour products in Western Europe
Food/drink/tobacco specialists and small local grocers the two biggest channels
Modern grocery retailers also important, but e-commerce share remains limited
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 continues to move up the rankings in 2022
Shenzhen Imiracle Technology takes e-vapour top spot from British American Tobacco
British American Tobacco with its “fastest speed to market launch yet” for Vuse Go in the UK
Philip Morris takes over Swedish Match
Only Turkey will record positive unit volume sales of cigarettes over the forecast period
Cigarette sales to decline by 57 billion units in Western Europe over the forecast period
Continued growth expected for next-generation tobacco products
Heated tobacco will drive growth in the overall category
Nicotine pouches expected to grow over 2022-2207
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
Norway: Market Context
Norway: 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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