Tobacco in 2024: The big picture
Austria’s tobacco market saw modest volume growth in 2024. Although public awareness of the health risks associated with smoking continued to rise, social acceptance of tobacco use declined only gradually. This s largely influenced by enduring cultural norms, entrenched smoking habits among certain population groups, political inertia, and the ongoing visibility of smoking in public social spaces such as outdoor dining areas.
2024 key trends
Cigarettes, the largest product category, registered only a slight decline in volume sales in 2024, an improved performance compared to the previous two years. A key factor contributing to the relative stabilisation of cigarette retail volume sales was the decline in illicit trade and, more notably, a reduction in cross-border purchases by consumers from neighbouring countries.
Competitive landscape
Philip Morris SA maintained its position as the leading company in Austria’s tobacco market in 2024, supported by key brands including Marlboro and Chesterfield in cigarettes and fine-cut tobacco, and IQOS and HEETS in heated tobacco products. The company leveraged the strong prestige of Marlboro and Chesterfield by expanding their brand extensions across a wide price spectrum. Meanwhile, IQOS and HEETS continued to dominate heated tobacco, benefiting from Austria’s stringent regulatory environment that has effectively limited competitor entry. Consequently, Philip Morris was the most dynamic major player in the tobacco market in 2024. Looking ahead to 2025, the company is reportedly preparing to enter the promising closed-system rechargeable market in Switzerland with its new Veev One product.
Retail developments
Food, drink, and tobacco specialists remained the leading distribution channel for tobacco products overall in 2024. However, these outlets’ share of sales declined slightly during the year, largely benefiting vending. The state tobacco distribution monopoly restricts the sale of tobacco products (excluding nicotine pouches and vapour products) exclusively to licensed tobacco specialists, known as “Trafiken.” As a result, these specialists also supply most vending forecourt retailers, small local grocers, and hospitality outlets. Vending machines are typically operated by the nearest tobacco specialist retailer, while other retail channels generally source their tobacco products from these specialists at standard market prices and are legally required to add a surcharge. This surcharge makes non-specialist channels less attractive to consumers.
What next for tobacco?
The Austrian tobacco market is expected to experience relatively flat volume performance over the forecast period. While retail volume sales of cigarettes are projected to decline at an accelerated pace, this will be partially offset by continued growth in heated tobacco, e-vapour products, and nicotine pouches. The sustained reduction in illicit trade and cross-border cigarette purchases - levels that are unlikely to return to their pre-pandemic 2019 volumes - will also support domestic retail sales. However, it is important to note that any projected increase in market value is expected to result entirely from upcoming tax hikes, particularly on cigarettes, some of which have already been confirmed.
Delivery:
Files are delivered directly into your account soon after payment is received and any tax is certification is verified (where applicable).
This report comes in PDF with additional info in Excel included.
Overview:
Understand the latest market trends and future growth opportunities for the Tobacco industry in Austria 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 Austria, 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 Austria 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 Austria?
- Which are the leading brands in Tobacco in Austria?
- How are products distributed in Tobacco in Austria?
- Which category is the most heavily taxed in Austria?
- How is the operating environment for Tobacco changing?
- What are the current legislative restrictions applicable to the sale of Tobacco products in Austria?
- 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 Austria
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
Low ignition propensity (LIP) cigarette regulation
Flavoured tobacco product ban
Reduced harm
Vapour products
PRODUCTION/IMPORTS/EXPORTS
DISCLAIMER
Cigarettes in Austria
KEY DATA FINDINGS
Demand for cigarettes remains surprisingly stable
Philip Morris retains leadership while JTI invests in premium segment with launch of Sobranie
Vending continues to win market share
Cross-border purchases will remain a key influencing factor
Government likely to maintain cautious approach to tobacco control
No groundbreaking innovations expected in cigarettes
Taxation rates
Average cigarette pack price breakdown
Cigars, Cigarillos and Smoking Tobacco in Austria
KEY DATA FINDINGS
Cigars and cigarillos see modest growth, while fine cut tobacco continues to decline
Dannemann Group and JTI Austria GmbH defend their leading positions
Distribution is governed by strict state monopoly
Pessimistic outlook across all categories
Tax increases will further hinder demand for fine cut tobacco
Track & Trace compliance expands to cigars and cigarillos in 2025
Smokeless Tobacco, E-Vapour Products and Heated Tobacco in Austria
KEY DATA FINDINGS
New generation nicotine products are still on the rise
Philip Morris continues to dominate heated tobacco while e-vapour remains highly competitive
Vending gains momentum, but tobacco specialists remain dominant channel
Alternative nicotine products set for continued growth
Stringent tobacco laws will be extended to non-tobacco products
Product innovation will focus on transition to closed system rechargeable devices
The following categories and subcategories are included:
Tobacco
-
-
- Fine Cut Cigarettes
-
- Cigarettes (Illicit+Legal)
-
-
- Cigars
- Cigarillos
-
- Pipe Tobacco
- Fine Cut Tobacco
-
-
-
- Chewing Tobacco
-
-
- Loose US-Style Moist Snuff
- Portion US-Style Moist Snuff
- Swedish-Style Snus
-
-
-
- Closed System Single Use
-
- Closed System Rechargeable (including starter kits)
- Closed System Cartridges
-
- Open Vaping Systems Charging and Vapourising Devices
- E-liquids
-
-
- Tobacco Heating Devices
- Heated Tobacco
-
- Nicotine Pouches
-
-
- 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?
- Gain competitive intelligence about market leaders
- Track key industry trends, opportunities and threats
- Inform your marketing, brand, strategy and market development, sales and supply functions
This report originates from Passport, our Tobacco research and analysis database.
NEW REPORT GUARANTEE
If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extraction Free!