Tobacco in 2024: The big picture
Retail volume sales of cigarettes in Germany increased in 2024. This was despite smoking prevalence continuing to see a slow but steady decline, notably among young adults. Moreover, there is declining social acceptance of tobacco in public places, with Germany still having fewer limitations than some neighbouring countries. For example, the public smoking ban in Milan has sparked public discourse in Germany around passive smoking and its health effects, and whether further smoking bans should be implemented in Germany too.
2024 key trends
The German tobacco market saw strong growth in current value terms in 2024, but this was mainly due to price increases. Due to an increase in the tobacco tax, cigarettes as well as e-liquids saw price increases, while cigarette smoking prevalence continued to decline. Cigarettes remains by far the most important tobacco category in Germany, with sales even increasing in volume terms in 2024, which goes against the longer-term decline in sales. The main reason for the sudden increase was due to consumers anticipating price increases in 2025 and thus making their purchases in advance to save money.
Competitive landscape
The three largest global companies – Philip Morris, Imperial Brands (represented locally by Reemtsma Cigarettenfabriken GmbH), and British American Tobacco – dominate retail volume sales of tobacco in Germany. Philip Morris was able to maintain its overall leadership due to its strength in the largest category of cigarettes. It enjoys strong brand awareness with Marlboro cigarettes, while it also dominates sales of heated tobacco with its Terea and HEETS brands of heated tobacco sticks for its Iqos tobacco heating devices. British American Tobacco, with its Glo brand, remains the only major competitor to the Iqos brand in tobacco heating devices. While Glo has gained some market share, Iqos continues to dominate the market. This is likely to remain the case thanks to Philip Morris’ strong distribution network with Iqos brand being more widely available.
Retail developments
Cigarettes, along with heated tobacco, are widely available through grocery channels in Germany, including forecourt retailers, with no expected changes in the legislation with regard to their distribution over the forecast period. Vending also remains a major channel for tobacco sales and even offers these products in rural areas where vending machines are sometimes the only easily accessible option. For vending as a whole, tobacco remains the most important product, as this channel is not particularly popular in Germany.
What next for tobacco?
Smoking prevalence of cigarettes is expected to remain at a relatively high level in Germany compared to other European countries, despite predictions for a further decline in volume sales. This is likely to be linked to reduction in the number of young adult smokers, alongside an increasing shift towards perceived reduced risk next generation products. However, as part of the latest tobacco tax update, vaping has become more expensive as well. Partially, this has led to an increase of the illicit market. Despite this, smokeless tobacco categories such as e-vapour products and heated tobacco are taking an increasing value share of the tobacco market in Germany.
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Overview:
Understand the latest market trends and future growth opportunities for the Tobacco industry in Germany 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 Germany, 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 Germany 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 Germany?
- Which are the leading brands in Tobacco in Germany?
- How are products distributed in Tobacco in Germany?
- Which category is the most heavily taxed in Germany?
- How is the operating environment for Tobacco changing?
- What are the current legislative restrictions applicable to the sale of Tobacco products in Germany?
- 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 Germany
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 Germany
KEY DATA FINDINGS
Sales increase as consumers stock up ahead of forthcoming tax increase
Philip Morris share sees a slight erosion due to intense price competition
Forecourt retailers remain the leading channel but discounter share rises
Cigarette smoking prevalence expected to decline but likely to remain at a high level
EU initiatives may accelerate changes in Germany’s tobacco market
Innovation expected to focus on slim cigarettes and larger pack sizes
Taxation rates
Average cigarette pack price breakdown
Cigars, Cigarillos and Smoking Tobacco in Germany
KEY DATA FINDINGS
Cigars and cigarillos resilient while smoking tobacco recovers due to revised law
Private label makes gains in cigars and cigarillos thanks to lower prices
Food/drink/tobacco specialists lead distribution while e-commerce makes gains
Resilience for cigars and cigarillos, while smoking tobacco may see further growth
Flavours set to remain a key differentiation point for cigarillo brands
Cigars expected to focus on premium positioning through provenance
Smokeless Tobacco, E-Vapour Products and Heated Tobacco in Germany
KEY DATA FINDINGS
E-vapour products thriving but consumers switching to rechargeable devices
Chinese brands lead e-vapour products, while tobacco players dominate heated tobacco
E-commerce key to sales of e-vapour products and heated tobacco
Regulatory pressure likely to increase
Public health experts doubt harm-reduction arguments
Players likely to focus on new technology and innovation to win over consumers
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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