Tobacco in 2024: The big picture
In 2024, the tobacco industry in Australia experienced continued contraction, shaped by intensifying regulation, reduced consumer demand, and rising price sensitivity. The most significant regulatory development was the staged implementation of the Public Health (Tobacco and Other Products) Act 2023, which initiated a transition period in April and is set for full enforcement from July 2025. This sweeping legislation introduces strict prohibitions on advertising, promotional activity, and product visibility; while also mandating flavour bans, health warnings printed directly on sticks and packaging, and restrictions on disposable e-vapour products. These measures position Australia as one of the most highly regulated tobacco markets globally, accelerating the long-term shift away from nicotine use.
2024 key trends
Smoking prevalence in Australia reached historic lows in 2024, driven by decades of concerted public health efforts. According to the 2022-2023 National Drug Strategy Household Survey, only 8.3% of Australians aged 14 and over smoked daily, down from 24% in 1991. Among 14 to 19-year-olds, 94% have never smoked, signalling a profound generational shift in behaviour. The National Tobacco Strategy’s aim to reduce daily smoking prevalence to under 10% by 2025 appears within reach. This progress is largely attributable to a combination of ongoing education, marketing restrictions, and plain packaging laws, all of which have rendered tobacco products less appealing, particularly to younger demographics.
Competitive landscape
Imperial Brands remained the leading company in Australia’s tobacco market in 2024, supported by a broad portfolio of value-positioned products and strong presence in key categories such as cigarettes and fine cut tobacco. Its continued dominance was underpinned by the popularity of JPS, a competitively priced cigarette brand that has secured consumer loyalty among price-sensitive smokers. This resilience is particularly notable given the shrinking size of the legal market and rising consumer drift toward illicit alternatives.
Retail developments
In 2024, supermarkets continued to dominate legal tobacco distribution in Australia, led by national chains such as Coles and Woolworths. These retailers benefit from their expansive footprint, established logistics networks, and capacity to comply with increasingly complex regulatory frameworks. Restrictions on product display and promotion have made visibility nearly impossible, yet supermarkets maintain their status as key tobacco retailers due to frequent consumer visits and the bundling of tobacco purchases with everyday groceries.
What next for tobacco?
Looking ahead, Australia’s legal tobacco market is projected to decline steadily in volume terms, driven by regulatory tightening and the enduring impact of public health campaigns. From 1 July 2025, the full enforcement of the Public Health (Tobacco and Other Products) Act 2023 will introduce sweeping new rules, including standardised packaging, larger graphic health warnings covering 90% of packs, and mandatory ingredient disclosures. These changes are expected to further reduce product appeal and complicate brand differentiation.
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Overview:
Understand the latest market trends and future growth opportunities for the Tobacco industry in Australia with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
Data and analysis in this report provides further detailed coverage dedicated to the following key categories, where applicable:
- Cigarettes
- Cigars, Cigarillos and Smoking Tobacco
- Smokeless Tobacco, E-Vapour Products and Heated Tobacco
If you're in the Tobacco industry in Australia, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
The Tobacco in Australia report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volume and value sizes, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent research methodology, conducted in-country
This report answers:
- What is the market size of Tobacco in Australia?
- Which are the leading brands in Tobacco in Australia?
- How are products distributed in Tobacco in Australia?
- Which category is the most heavily taxed in Australia?
- How is the operating environment for Tobacco changing?
- What are the current legislative restrictions applicable to the sale of Tobacco products in Australia?
- How has COVID-19 impacted demand?
- How have national lockdown and enforced home seclusion following COVID-19 impacted sales?
- Where is future growth expected to be most dynamic?
Tobacco in Australia
Tobacco in 2024: The big picture
2024 key trends
Competitive landscape
Retail developments
What next for tobacco?
Legislation
Legislative overview
Minimum legal smoking age
Smoking prevalence
Tar levels
Health warnings
Plain packaging
Advertising and sponsorship
Point-of-sale display bans
Smoking in public places
Flavoured tobacco product ban
Vapour products
PRODUCTION/IMPORTS/EXPORTS
DISCLAIMER
Cigarettes in Australia
KEY DATA FINDINGS
Rising prices, more restrictions and social rejection
Tobacco giants lose share as illicit trade rises
Grocery retailers dominate, illicit trade and violence disrupt specialist tobacco channels
Stricter tobacco regulations drive declining consumption and industry shifts
Illicit trade becomes a significant concern
Standardisation limits innovation
Taxation rates
Average cigarette pack price breakdown
Cigars, Cigarillos and Smoking Tobacco in Australia
KEY DATA FINDINGS
Stricter regulations and rising prices accelerate category decline
Established leaders adapt to price pressures and regulatory shifts
Supermarkets dominate distribution as small grocers lose relevance
Price pressure and social shifts accelerate decline
Limited alternatives reinforce downward trajectory
Standardised packaging and regulations constrain innovation
Smokeless Tobacco, E-Vapour Products and Heated Tobacco in Australia
KEY DATA FINDINGS
Regulations reshape category
Regulatory shifts undermine The Vape Store’s market position
Retail e-vapour access collapses under new framework
Therapeutic framework refines e-vapour category
Illicit trade surges as legal sales collapse
From recreational to therapeutic use
The following categories and subcategories are included:
Tobacco
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- Fine Cut Cigarettes
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- Cigarettes (Illicit+Legal)
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- Cigars
- Cigarillos
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- Pipe Tobacco
- Fine Cut Tobacco
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- Chewing Tobacco
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- Loose US-Style Moist Snuff
- Portion US-Style Moist Snuff
- Swedish-Style Snus
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- Closed System Single Use
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- Closed System Rechargeable (including starter kits)
- Closed System Cartridges
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- Open Vaping Systems Charging and Vapourising Devices
- E-liquids
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- Tobacco Heating Devices
- Heated Tobacco
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- Nicotine Pouches
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- Closed System Single Use (Illicit+Legal)
- Closed System Cartridges (Illicit+Legal)
- E-Liquids (Illicit+Legal)
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 definitionsWhy buy this report?
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This report originates from Passport, our Tobacco research and analysis database.
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