In 2024, tobacco in Singapore continued its decline in retail volume sales, following the trend observed for several years. Cigarettes maintained its downward trajectory, with the mid-priced and premium segments under pressure in particular. This was due to consumers' ongoing search for more affordable options as a result of continual price rises, thereby benefiting the economy price band in terms of share, although not sales. Smoking tobacco also saw a volume decline in 2024, due to price rises leading some people to quit, and the switch by some consumers to the convenience and flavour options of cigarettes.
The staggered tax rises in the past two years led some consumers to reduce their discretionary spending by lowering their consumption of tobacco, especially cigarettes and smoking tobacco. Cigarettes continued to be the main category in tobacco due to habit persistence amongst consumers, and the restrictions on e-vapour products and heated tobacco. Meanwhile, the continuous expansion of no smoking zones further contributed to reducing the consumption of cigarettes, with smoking prevalence dropping to 13% in 2024.
With cigarettes being dominant within tobacco in Singapore, it was companies in this category which continued to lead overall tobacco in 2024. Tobacco continued to be dominated by three major multinational players in retail volume terms in 2024 – Philip Morris Singapore Pte Ltd, JT International (Singapore) Pte Ltd, and British American Tobacco (Singapore) Pte Ltd, which together accounted for over 90% of sales. These companies maintain their stronghold due to their extensive distribution networks and large consumer base.
In Singapore, the distribution of tobacco is heavily regulated, requiring licenses for various activities, like importation, wholesale, distribution, and retail. For cigarettes, the main channels are hospitality, small local grocers, and convenience retailers. These channels are widely available and accessible to consumers everywhere. Meanwhile, tobacco specialists and cigar lounges (hospitality) remain key distribution channels for cigars in Singapore, catering to a niche but affluent consumer base seeking premium and rare cigar brands. Cigar smokers appreciate the tactile, experiential nature of purchasing cigars in such outlets. Cigar lounges within integrated resorts, luxury hotels, and stand-alone venues have expanded their offerings and improved the ambiance to cater to affluent locals and tourists.
Retail volume sales of tobacco are set to continue to decline over the forecast period, with legal sales expected to fall in all categories. With the government’s steady approach to a smoke-free nation, the consumption of tobacco is expected to decline over the forecast period. The government constantly reviews regulations, including taxation, dedicated smoking areas, and no smoking zones, and is also still continuously reviewing the possibility of applying a generational ban in the country, which is seen to be a long-term solution to curbing smoking.
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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 definitionsThis report originates from Passport, our Tobacco research and analysis database.
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