Tobacco in 2024: The big picture
Retail volume sales of tobacco in Hong Kong continued to decline in 2024. Hong Kong is taking significant steps towards stringent tobacco control to reduce the smoking rate, and the government is committed to tobacco control, aiming for a smoke-free environment. The new strategy includes short-, medium-, and long-term measures, such as banning alternative smoking products, prohibiting smoking in queues, and expanding no-smoking areas with a phased approach to manage public acceptance. The fine for smoking violations will increase to HKD3,000.
2024 key trends
Soaring tobacco taxes have directly fuelled a massive black market for cigarettes. Customs data reveals a dramatic surge in illegal cigarette cases, more than tripling from 4,312 in 2021 to 13,500 in 2023. This explosion in smuggling, coupled with increased arrests, demonstrates that high taxes are driving smokers towards illicit sources, resulting in significant lost tax revenue for the government.
Competitive landscape
The Hong Kong cigarette market remains a highly concentrated oligopoly, with Philip Morris Asia Ltd, British American Tobacco Co (Hong Kong) Ltd, and Japan Tobacco (Hong Kong) Ltd collectively controlling a vast majority of the retail volume. This indicates a high barrier to entry for new players, and the players’ dominance is built on established brand recognition, extensive distribution networks and significant marketing resources.
Retail developments
In 2024, Hong Kong’s cigarette market remained dominated by convenience stores due to their widespread network and convenience. Convenience stores are the primary points of cigarette distribution, capitalising on their extensive network, long hours and high customer volume. While these stores offer easy access, they rigorously follow regulations, including keeping cigarettes out of direct view behind counters and displaying mandatory health warnings. As Hong Kong tightens tobacco control with measures like flavour bans and plain packaging, convenience stores will be central to the implementation of these new rules.
What next for tobacco?
After the government increased tobacco tax in 2023 and 2024, the smoking rate only dropped slightly. Hong Kong's recent tobacco tax increases, intended to curb smoking and boost revenue, have instead resulted in minimal reductions in smoking rates, a significant drop in government tax revenue, and a surge in the illicit cigarette market, exacerbating the city's fiscal deficit and creating social problems.
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Overview:
Understand the latest market trends and future growth opportunities for the Tobacco industry in Hong Kong, China 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 Hong Kong, China, 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 Hong Kong, China 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 Hong Kong, China?
- Which are the leading brands in Tobacco in Hong Kong, China?
- How are products distributed in Tobacco in Hong Kong, China?
- Which category is the most heavily taxed in Hong Kong, China?
- How is the operating environment for Tobacco changing?
- What are the current legislative restrictions applicable to the sale of Tobacco products in Hong Kong, China?
- 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 Hong Kong, China
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 Hong Kong, China
KEY DATA FINDINGS
Cigarettes sales fall in 2024
Philip Morris benefits from robust distribution network
Convenience stores dominate sales
Future demand undermined by further government intervention
Ban on possession of alternative cigarettes
Flavoured cigarettes ban
Taxation rates
Average cigarette pack price breakdown
Cigars, Cigarillos and Smoking Tobacco in Hong Kong, China
KEY DATA FINDINGS
Cigars sales decrease, while cigarillos expand within convenience stores
Dynamic competitive landscape
7-Eleven offers wide selection
Hong Kong as a premium cigar market
Cigarillos on the rise thanks to accessibility and affordability
Innovation set to gather pace
Smokeless Tobacco, E-Vapour Products and Heated Tobacco in Hong Kong, China
Hong Kong’s ban on alternative smokeless tobacco, e-vapour products and heated tobacco
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?
- 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.
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