Summary

The European population is experiencing increased consumption, and other tobacco products from various age groups are one of the key drivers of the European cigarette business. Even after the adoption of different programs by local and regional government organizations to limit and combat tobacco consumption, cigarette smoking among the young and adult populations in Europe has had the least impact. A huge increase in the number of luxury cigarette brands offering superior quality, high-end packaging, and a refined smoking experience is one of the primary reasons driving European cigarette industry growth. This trend is bolstered further by the region's residents' high discretionary incomes. Furthermore, the nicotine in cigarettes is thought to produce an immediate sense of relaxation, which is increasing the number of people who smoke to relieve tension and anxiety. This, along with hectic lifestyles and extended working hours, is favourably driving market growth in the region. Cigarette volumetric data is gradually falling due to lower usage in the region. However, the market value of cigarettes is rising due to consumer preference for premium cigarettes. Cigarette price increases and changes in tobacco taxation also contribute significantly to market growth. The output of cigarettes from various manufacturers is expanding at a modest rate. When compared to imports, European cigarette exports are significant. In addition, the outflows of cigarettes within Europe are equivalent to the inflows. Europe is home to a plethora of diverse cigarette brands, many of which are strongly steeped in local customs and preferences. This geographical variation extends to flavor profiles, with a diverse spectrum of flavors and additions reflecting the distinct characteristics of many European countries. Furthermore, the European market has been a battleground for legislative changes aimed at lowering smoking rates, resulting in a complicated environment of varied taxing policies, advertising limits, and packaging rules, all of which add to the industry's complications.

According to the research report, “Europe Cigarette Market Outlook, 2028” published by Bonafide Research, the market is expected to add more than USD 20 Billion from 2023-2028. The fast emergence of alternative tobacco and nicotine products, such as e-cigarettes and heated tobacco devices, in the European market has added another layer of complexity to customer choices. In conclusion, the European cigarette market's uniqueness stems from its blend of various cultural tastes, sophisticated regulatory frameworks, and the presence of classic and developing tobacco products, resulting in a dynamic and multifaceted landscape within the global tobacco business. The European cigarette market is also distinguished by its historical significance and tobacco industry legacy. Several renowned tobacco-producing countries, including France, Italy, and Greece, have long-standing tobacco farming and cigarette manufacturing traditions, which have contributed to the markets distinct flavor profiles and branding. Consumers typically associate these historical brands with a sense of nostalgia and cultural relevance. The European Union's position in tobacco product regulation adds another degree of complication to the industry. The EU Tobacco Products Directive (TPD) established a framework for the sale and distribution of tobacco products across member countries, unifying key areas of the market while allowing for some national flexibility. Because of this legal framework, packaging has become increasingly approachable in terms of packaging and labeling. Moreover, the European market has seen a shift towards premium and luxury segments, with consumers willing to pay a premium for higher-quality tobacco products and unique packaging. This trend has given rise to specialized and niche brands that cater to discerning smokers looking for a premium smoking experience.

Based on report market divided into six major countries, Germany, United Kingdom, France, Italy, Spain and Russia. Germany among the major consumer of cigarette in Europe and is expected to lead the market as well.

Cigarettes have long been a significant part of Germany's cultural and economic landscape. Despite global trends toward decreasing smoking rates and increased health awareness, Germany's cigarette business remains one of the largest in Europe. The growth of the German cigarette market has been a complex and dynamic process. Historically, Germany has had a strong smoking culture, with cigarettes deeply ingrained in its social fabric. A large population, a robust economy, and the cultural acceptance of smoking all contributed to the market's long-term expansion. Germany has 83 million people, making it one of the most populous countries in the European Union. This large user base makes it a desirable market for cigarette manufacturers, as even a gradual fall in smoking rates results in a sizable number of smokers. According to a new study, the average person smokes more than 1500 cigarettes per year. Smoking has long been associated with German culture, with references to it appearing in literature, art, and film. Characters smoking pipes or cigarettes are commonly seen in iconic images of German culture, adding to the country's enduring image of smoking. Germany is one of Europe's largest tobacco growers, with tobacco farms in places like Baden-Württemberg and Bavaria. This local production has the potential to impact cigarette supply and affordability in the domestic market. Because of its strategic location in the heart of Europe, Germany serves as an essential hub for tobacco product commerce and distribution within the EU and beyond. This essential function fortifies its position in the global tobacco industry. Germany possesses a number of tobacco-related events and festivals, including the yearly InterTabac trade show.

Based on type market is divided into light, medium and others. Among them light type is commonly consumed in Europe and is dominating the market with significant market share.

Light cigarettes are popular in Europe, and this choice can be attributed to a number of variables. In order to begin with, light cigarettes are sold as a gentler, presumably less dangerous alternative to full-strength cigarettes. These appeals to health-conscious users who want to keep smoking while decreasing their exposure to tobacco's detrimental effects. European countries, which are recognized for their strict public health policies and regulations, have witnessed greater awareness of the dangers of smoking, prompting many smokers to seek perceived lower-risk alternatives. Furthermore, changing societal attitudes about smoking have had an impact on the European market. Smoking bans in public areas, employment bans, and societal stigmatization of smoking have all contributed to the act being less socially acceptable. As a result, some smokers choose light cigarettes as a compromise, believing that they are less invasive and irritating to non-smokers. Furthermore, the European market has been a pioneer in cigarette package regulation, requiring graphic health warnings and plain packaging, which can make light cigarettes visually appealing because they often employ softer hues and more discreet branding. Another significant reason for the popularity of light cigarettes in Europe is the sensory experience they offer. Light cigarettes are often designed to provide a milder taste and smoother smoke, making them more palatable for those who find the harshness of regular cigarettes less enjoyable. This sensory appeal can be particularly appealing to individuals who are trying to reduce their smoking or transition to lower-nicotine products, as the taste and overall experience may be perceived as more pleasant.

Based on distribution channel market is segmented into speciality store, hypermarket/ supermarket, convenience stores, online and others. Majority of the cigarettes are distributed through speciality stores in Europe.

Tobacco product sales are strictly restricted throughout Europe, with strong age verification and advertising prohibitions in place. Specialty establishments, such as tobacco shops and dedicated kiosks, are often well-equipped to assure compliance with these requirements because they specialize in selling tobacco and associated items and have the infrastructure to properly verify the age of consumers. Furthermore, these specialty businesses frequently have a large range of cigarette brands and tobacco-related accessories, giving customers a variety of options. This vast assortment responds to the different preferences of European consumers, who may have distinct tastes and brand loyalty. Furthermore, the distribution of cigarettes through specialty stores corresponds to tobacco's historical and cultural relevance in many European countries. These stores frequently have a long history in the community and can act as social hubs for smokers, where talks about tobacco-related issues and product recommendations are widespread. Overall, the prevalence of specialty stores as the primary distribution channel for cigarettes in Europe is due to the strict regulatory environment, the need for age verification, the desire to provide a diverse range of options, and the historical and cultural significance of these stores in local communities. This distribution approach ensures that tobacco products are distributed in a controlled and responsible manner, while also accommodating European consumers' tastes.

Companies Covered in this report:
British American Tobacco plc, The Japan Tobacco Inc., Imperial Tobacco Group plc, ITC Limited, Philip Morris International Inc, Korea Tobacco & Ginseng Corporation (KT&G), PT Djarum, Landewyck Tobacco S.A., Karelia Tobacco Company Inc.

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

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

Country covered in the report:
• Germany
• United Kingdom
• France
• Italy
• Spain
• Russia

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 and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone 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 making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

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





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