Tobacco in 2024: The big picture
In 2024, tobacco in the Netherlands recorded a retail value decline, impacted by increasingly stringent government policies, which remained an influential force impacting market performance. Multiple hikes in excise duties have driven up prices across all tobacco products, placing additional financial strain on consumers. In addition, the expansion of smoking bans in public places has further restricted opportunities for consumption, reinforcing downward momentum in volume sales. Finally, the reduction of channels where tobacco and nicotine products are sold, placed further downward pressure on sales.
2024 key trends
In 2024, total tobacco and nicotine product sales in the Netherlands recorded a volume decline. The sharpest decline was in cigarettes, with e-vapour products recording a modest fall while heated tobacco products was the only category to post a slight uplift in volume growth. The substantial excise tax hike in April 2024 on cigarettes and rolling tobacco, which followed excise increases in 2023, negatively impacted sales. As such, tobacco prices are now influencing purchasing behaviour, with smoking prevalence decreasing, and cross border sales rising.
Competitive landscape
Philip Morris Holland BV was the leading company in 2024, recording an uplift in share. This result was supported by strong brand recognition and loyalty to its key brands, including Marlboro, L&M, and Chesterfield. Successive excise hikes have narrowed the price gap between premium and economy cigarettes, reducing the incentive for smokers to trade down. As a result, Philip Morris's market share has benefited, with consumers favouring familiar brands over cheaper, lesser-known alternatives. Additionally, the player's investment in heated tobacco products, like IQOS, positions it to capture shifting preferences among smokers seeking alternatives to traditional cigarettes. Royal Agio Cigars NV was the most dynamic company in 2024, recording high single-digit growth and an uplift in volume share. The player leads cigars and cigarillos, offering brands including Mehari's, Panter, Balmoral, Agio and De Huifkar.
Retail developments
Forecourt retailers have emerged as a key channel for tobacco and nicotine product sales in the Netherlands, particularly following the legislative ban on tobacco and vapour product sales in supermarkets, which came into force in July 2024. As traditional grocery retailers were phased out as a point of sale, many consumers shifted their purchases to forecourt outlets, driving a noticeable uplift in traffic and transaction volume in this channel.
What next for tobacco?
Within cigarettes and smoking tobacco, volume declines are set to continue over the forecast period, as the impact of continued tax increases, the declining smoking population, and expanding smoking bans challenge sales. E-vapour and heated tobacco products will offer some offsetting growth, especially among smokers seeking alternatives. However, these categories will also be subject to growing regulation, including flavour bans and, restricted sales channels and potential excise taxes. The net effect will be a continued contraction of overall market volume.
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Overview:
Understand the latest market trends and future growth opportunities for the Tobacco industry in Netherlands 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 Netherlands, 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 Netherlands 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 Netherlands?
- Which are the leading brands in Tobacco in Netherlands?
- How are products distributed in Tobacco in Netherlands?
- Which category is the most heavily taxed in Netherlands?
- How is the operating environment for Tobacco changing?
- What are the current legislative restrictions applicable to the sale of Tobacco products in Netherlands?
- 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 the Netherlands
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 the Netherlands
KEY DATA FINDINGS
Increasing excise duty leads to reduced cigarette consumption in the Netherlands
Philip Morris Holland BV continues to lead sales, while improving its volume share
The ban on tobacco sales through supermarkets benefits forecourt retailers and specialists
Growth will be further affected by regulatory changes and smoking prevalence
Plans to limit sales channels will place further pressure on the sales of cigarettes
Negative volume growth leaves little incentive and oppertunity for innovation
Taxation rates
Average cigarette pack price breakdown
Cigars, Cigarillos and Smoking Tobacco in the Netherlands
KEY DATA FINDINGS
Excise duty increases and public smoking bans place downward pressure on growth
Known brands continue to lead as the ban on tobacco advertising favours well-established players
Regulation limiting sales through modern grocery benefits food/drink/ tobacco specialists
Government regulations and shifting societal attitudes will contribute to a decline in volume sales
Ongoing changes in the distribution landscape are set to shape consumer purchasing habits
Lack of innovation will put further downward pressure on growth
Smokeless Tobacco, E-Vapour Products and Heated Tobacco in the Netherlands
KEY DATA FINDINGS
Legislation banning flavoured e-vapour products limits appeal in 2024
Shenzhen Joye Technology Co Ltd retains its lead, driven by open systems
Tobacco and e-vapour specialists benefit from channel restrictions
An excise duty on e-liquids would challenge sales across the forecast period
Distribution restrictions will support growth for tobacco specialist and vape stores
The flavour ban and ongoing regulations are set to limit innovation opportunities
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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