Tobacco in 2024: The big picture
Tobacco remained in a decline in Canada in 2024, due to the ongoing trends towards smoking cessation. Social attitudes towards cigarettes, in particular, are negative, and the government is pushing for new warnings about the dangers of smoking. For example, Canada was the first country to require health warnings directly on individual cigarettes. In April 2024, a 31 July 2024 deadline was set for tobacco companies to ensure all their King Size cigarettes depict these new warnings, which are six different, rotated, bilingual warnings. The warnings include: poison in every puff; cigarettes damage your organs; cigarettes cause cancer; tobacco smoke harms children; cigarettes cause impotence; and cigarettes cause leukaemia. Regular size cigarettes had until 30 April 2025 to make the change. Packs are also required to have larger warnings and standardised designs, making it difficult for different brands to differentiate themselves via their packaging.
2024 key trends
Overall smoking prevalence is on a downwards trajectory, with notably fewer smokers expected over the coming years. As such, with fewer smokers and tighter rules on packaging, marketing, and product formats, companies are placing more focus on e-vapour products, nicotine pouches, and heated tobacco. According to Reuters, British American Tobacco Plc (BAT) (GBO) (Imperial Tobacco Canada Ltd in Canada) said it expects to see stronger growth in these areas over the coming years. The player offers the leading Vuse brand in e-vapour products. However, while Philip Morris International Inc (PMI) (GBO) (Rothmans Benson & Hedges Inc in Canada) continues to push Iqos VEEV and Iqos ILUMA, heated tobacco currently has limited uptake in the country.
Competitive landscape
Imperial Tobacco Canada Ltd (British American Tobacco Plc (GBO)) is the leading company in tobacco in Canada, with Rothmans Benson & Hedges Inc (Philip Morris International Inc (PMI) (GBO)) in second place, and with Pacific Smoke International Inc being the only other company holding an overall double-digit company share.
Retail developments
The retail landscape for tobacco in Canada is subject to changes, mostly in response to policy pressures and tighter rules. Health Canada has moved forward with packaging regulation updates under the Tobacco and Vaping Products Act (TVPA) new proposals in 2024 aim to make sure warnings are visible on all pack surfaces including cartons. This affects how brands can present their products on shelves, especially as even the outside carton now needs to feature a warning.
What next for tobacco?
The Canadian authorities will continue a clamp down on tobacco over the forecast period, in line with smoking cessation goals (<5% by 2035). This means ongoing rules and regulations, bigger warning labels, more taxes, and potential restrictions on innovation. Thus far there have been moves to print warnings on individual cigarettes (a first), standardise packaging, and even print warnings on exterior packaging of cartons. Also, in March 2025, the government introduced new Tobacco Charges Regulations. Starting 1 May 2025, tobacco companies now have to start paying for the cost of running tobacco control programmes. The first reporting deadline is April 2026, with payments due November 2026.
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Overview:
Understand the latest market trends and future growth opportunities for the Tobacco industry in Canada 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 Canada, 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 Canada 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 Canada?
- Which are the leading brands in Tobacco in Canada?
- How are products distributed in Tobacco in Canada?
- Which category is the most heavily taxed in Canada?
- How is the operating environment for Tobacco changing?
- What are the current legislative restrictions applicable to the sale of Tobacco products in Canada?
- 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 Canada
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 Canada
KEY DATA FINDINGS
A continuous decline for cigarettes, due to ongoinhg efforts from health authorities
Imperial Tobacco maintains its lead, while players in cigarettes face challenges
Retail landscape subject to rules and regulations, with sales of cigarettes strongest through forecourt retailers
An ongoing structural decline for cigarettes
Competitive status quo expected to remain the same
Despite the challenges, some opportunities remain
Taxation rates
Average cigarette pack price breakdown
Cigars, Cigarillos and Smoking Tobacco in Canada
KEY DATA FINDINGS
Steady volume declines continue, with value in less steep falls due to high prices and niche appeal
Leading players hold their places, whilst facing challenges from lawsuits
Retail landscape remains subject to regulatory changes
Premiumisation will help to support niche sales of high-end products, protecting value from steeper slumps
Affordability challenges and health and wellbeing trends continue to shrink the consumer base
Challenge for cigar manufacturers to keep cigars culturally relevant in a changing consumer landscape
Smokeless Tobacco, E-Vapour Products and Heated Tobacco in Canada
KEY DATA FINDINGS
E-vapour products and heated tobacco maintain positve sales, while regulations start to bite
Players in e-vapour products fare well in overall company terms
Could vape shops become under even stricter scrutiny?
E-vapour products and heated tobacco set for ongoing growth, despite challenges
Heated tobacco could emerge as the next big thing
Illicit trade emerging as a major threat to compliance and market stability
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.
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This report originates from Passport, our Tobacco research and analysis database.
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