Summary

Canada's population has been steadily growing over the years. This natural population growth, along with immigration, can contribute to an increase in the overall number of smokers, even if the smoking rate per capita is declining. New individuals entering the population take up smoking, offsetting the reduction in smoking prevalence. Cigarette demand is often inelastic, meaning that changes in price have a relatively small impact on the quantity demanded. Nicotine addiction can be a powerful force, and many smokers are willing to pay higher prices to satisfy their addiction. The Canadian government has implemented high taxes on tobacco products to discourage smoking, but this hasn't eliminated the market entirely. Smokers cut back on other expenses or seek out cheaper alternatives to continue smoking. Smoking can be deeply ingrained in certain social and cultural contexts. In some communities, smoking is more prevalent due to historical or cultural factors. Social norms and peer pressure can also play a role in encouraging smoking, making it harder for individuals to quit or refrain from starting. Tobacco companies have historically targeted youth and young adults in their marketing efforts. They use tactics that appeal to younger consumers, such as sponsoring events and festivals popular among young people or using social media and influencers to promote their products. This can lead to a new generation of smokers, contributing to market growth. Mental health issues and stress can be factors that drive some individuals to smoke. Smoking is sometimes used as a coping mechanism for stress and anxiety. During times of increased stress, smoking rates rise. While some individuals quit smoking altogether, others switch to smoke-free alternatives like nicotine replacement therapies (NRTs), nicotine gum, or prescription medications. These products can reduce cigarette consumption but not eliminate it entirely.

According to the research report "Canada Cigarette Market Overview, 2028," published by Bonafide Research, the Canada Cigarette market is expected to reach market size of more than USD 9.60 Billion by 2028. Canada is a popular tourist destination, and many tourists come from countries where smoking is more prevalent. This can lead to an increase in the demand for cigarettes in Canada, particularly in tourist areas. Nicotine is a highly addictive substance, and smokers often find it difficult to quit. This leads to a steady demand for cigarettes, even as the overall smoking rate declines. Smoking is often seen as a way to socialize, reduce stress, and cope with difficult emotions. This can lead to some people starting to smoke, even though they know it is harmful to their health. Cigarettes are relatively inexpensive, especially when compared to other forms of tobacco consumption, such as cigars or pipes. This can make them more affordable for people on a budget. As the Canadian population ages, there is a growing number of people who are more likely to smoke. This is because smoking rates are higher among older adults than among younger adults. New tobacco products, such as e-cigarettes and heated tobacco products have become increasingly popular in Canada in recent years. While these products are often marketed as being less harmful than cigarettes, they still contain nicotine and can be addictive. Some smokers switch to these products, but others continue to smoke cigarettes or use both types of products.

Light cigarettes were marketed as a healthier alternative to regular cigarettes. Manufacturers claimed that they delivered lower levels of tar and nicotine, which led some smokers to believe that they were reducing their health risks by switching to these products. Light cigarettes often featured filters and design modifications intended to provide a milder and smoother smoking experience. This appealed to smokers who found regular cigarettes harsh. Some light cigarettes were designed to produce less offensive odors, making them more socially acceptable in situations where regular cigarettes might be frowned upon. Cigarette companies invested heavily in marketing light cigarettes as a better option, and they used terms like "light," "mild," and "low" to suggest reduced harm. This marketing strategy influenced consumer perceptions. Regulatory changes also played a role. In some cases, governments imposed stricter regulations on the levels of tar and nicotine in cigarettes, which prompted manufacturers to produce light cigarettes to comply with these regulations. Consumer preferences are a significant driver of the market share of light cigarettes. Many smokers opt for light cigarettes because they believe that these products offer a less intense smoking experience. These cigarettes are often marketed as having a milder taste, which appeals to those who find regular cigarettes too strong.

Online retail offers convenience and accessibility to consumers. Smokers can purchase cigarettes from the comfort of their homes, and this convenience can be especially appealing to those who not have easy access to physical stores due to geographical or mobility constraints. Online platforms can offer a broader range of cigarette brands and variants compared to brick-and-mortar stores. This variety can attract consumers looking for specific brands, flavors, or types of cigarettes. Online retailers often provide detailed information about cigarette prices and promotions, allowing consumers to compare prices easily. This transparency can lead to more informed purchasing decisions, which can be particularly important for price-conscious consumers. Some smokers prefer the anonymity and privacy that online shopping offers. Purchasing cigarettes online can help individuals avoid the social stigma associated with smoking and the judgment that come with buying cigarettes in person. Online retailers typically offer various delivery options, including home delivery or in-store pickup. This flexibility can cater to different consumer preferences, further enhancing the convenience factor.

Considered in this report:
• Geography: Canada
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report:
• Canada Cigarette market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Type
• Light
• Medium
• Others

By Distribution Channel
• Speciality Store
• Hypermarket/supermarket
• Convenience Stores
• Online
• Others

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and list out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, and annual reports of companies, analyzing the government-generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers into regional aspects, tier aspects, age groups, and gender. Once we have primary data with us we started verifying the details obtained from secondary sources.

Intended audience:
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the Cigarette industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.

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