Europe Cigarette Market Size, Share and Industry Analysis By Gender (Male and Female), By Age Group (15-24, 25-44, 45-64, and 65 & above), By Pricing (Premium, Economy, and Mid/Ultra Low), By Size (King, Regular, and Slim), and Regional Forecast 2019-2032

The Europe cigarette market size was valued at USD 218.61 Billion in 2018 and is projected to reach USD 502.45 Billion by the end of 2032, exhibiting a CAGR of 5.66% in the forecast period (2019-2032).

The European population is witnessing high consumption of cigarettes and other tobacco products, belonging to different age groups is one of the major drivers during the forecast period (2019-2026). The cigarette consumption trend among the young and adult population in Europe has got the least impact even after the implementation of various initiatives by the local and regional government bodies to control and combat tobacco consumption.

The volumetric data for cigarettes are declining rapidly owing to the lesser consumption of cigarettes in the region. But the market value of cigarettes is increasing due to the consumer inclination towards premium cigarettes. Also, the rise in cigarette prices and the change in the taxes of cigarettes aid the market growth at a significant rate. The production of cigarettes from various manufacturers is increasing and is exhibiting a slow growth rate. The exports of cigarettes from Europe are large when compared to the imports. Also, the outflows of cigarettes within Europe are equally high when compared to the inflows.

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The cigarette consumption trend is gaining huge popularity among consumers of different ages and gender, owing to its addictive and habit-forming nature. The rising working population, hectic lifestyle, increasing percentage of women in the workforce, and increasing stress at the workplace are some of the crucial factors that are expected to influence the Europe cigarette market positively. The manufacturers are intensively capitalizing to produce women-targeted cigarettes in the market, by innovating the packaging, formulation, and flavoring of cigarettes.

Market Segmentation

"The Regular Size Segment of the Cigarette is expected to hold the Largest Share in Terms of Value"  

In the European cigarette market, the regular size segment of the cigarette is expected to hold the largest share in terms of value throughout the forecast period. The popularity of regular-size cigarettes among consumers is rising, owing to their cost-effectiveness and offerings of varied tastes.

The prices of regular cigarettes are low as compared to king-size cigarettes, which is witnessed as the major driver of regular-size cigarettes among consumers. There are few numbers of manufacturers which are dominating the regular-size cigarette market, such as Philip Morris International (PMI), British American Tobacco, and others. These companies are intensively focusing on product development and premiumization of their brand by using organic and high-quality tobacco in their cigarette processing.

The high consumption of regular size cigarettes in the region is mainly associated with the majority of men population in the region who generally prefer regular cigarettes. The regular size cigarette in Europe is expected to grow crucially in the upcoming years, due to its cost efficiency and increased popularity among men.

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"Increased Demand for Premium and Formulated Cigarettes to Drive the Premium Cigarette Segment"

The premium cigarettes are dominating the Europe cigarette market growth and are expected to grow at a significant CAGR, owing to the increasing demand for premium and formulated cigarettes among the consumers. Consumers are increasingly shifting their preferences towards the innovative and varied taste of smoking.

Manufacturers are focusing on tobacco quality by using organic and high-quality tobacco for cigarette processing which results in the high cost as compared to its other range. The manufacturers are also focusing on making the product uniquely premium by using flue-cured tobacco and the finest whole leaf. These leaves are picked from the upper stalk of the plant as it provides the best flavor experience to the consumers.

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The modernization in technology and manufacturing capacities have enabled the manufacturers to produce formulated cigarettes that offer the luxury taste appeal to the consumers. Premium cigarettes hold the largest Europe cigarette market share in terms of value and popularity among consumers.

The strong economic conditions and rising modernization among the consumers have led to an increase in the purchasing power of the consumers to buy premium cigarettes according to their preferences. The rising innovations and improvements of cigarettes by the manufacturers are expected to perform a lucrative growth during the forecast period (2019-2026).

Regional Analysis

"Increased Consumer Base Drives the Growth of Cigarettes in Germany"

The consumption of tobacco and tobacco products, such as cigarettes, is very high in Germany as compared to other countries in Western Europe and Northern Europe. Germany was witnessed as the largest population of smokers across Europe in 2015, with an approximate number of 7.1 million female and 9.2 million male smokers. The increasing modernization, emerging dine-out trend, and night lounges in the country are the major factors to build a strong base of cigarette consumers.

The consumer base for a cigarette is rapidly increasing in the country, which mainly includes adolescents (age range from 15 years to 23 years) and other adult group population.  Manufacturers are intensively capitalizing on the premiumization of cigarettes to attract adolescents and other populations, as young people are more likely to start smoking, under the influence of their environment and social status.  

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The manufacturers are increasingly focusing on introducing flavored and formulated cigarettes with an option of low nicotine and added flavors to attract early age consumers and the women population in the country. The trend is expected to give a boost in the overall German cigarette market during the forecast period, which is valued at 15.93% of the market share in 2026.

INDUSTRY KEY Players

There are several major manufacturers performing in the market. The market is highly consolidated, and the major Europe cigarette market shareholders are Philip Morris International, Japan Tobacco International AG, British American Tobacco p.l.c., and Imperial Brands PLC. The manufacturers are focusing on new product launches according to the age group and gender preferences and acquisitions to expand their business base and consumer reach across the region. In 2018, Philip Morris Products S.A. globally launched IQOS 3 and IQOS 3 MULTI devices (beginning in Russia, Japan, and Korea) and strengthened its heated tobacco portfolio. The IQOS 3 focuses on consumer-centric enhancements, while the latter is designed to address the needs of consumers for consecutive use of consumables.

Other players present in the European cigarette market are Bulgartabac Holding, Korea Tobacco & Ginseng Corporation, Karelia Tobacco Company Inc., Continental Tobacco Group, European Tobacco, and Heintz Van Landewyck.

Key companies covered in the report

• Philip Morris Products S.A.


• Japan Tobacco International AG


• British American Tobacco p.l.c.


• Imperial Brands PLC


• Bulgartabac Holding


• Korea Tobacco & Ginseng Corporation


• Heintz Van Landewyck


• Karelia Tobacco Company Inc.


• European Tobacco


• Continental Tobacco Group

Report Coverage

An Infographic Representation of Europe Cigarette Market

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Tobaccos are the main ingredients in the manufacturing of cigarettes. The taste, smoke, and flavor are dependent on the different types of tobacco that are used in cigarette manufacturing. The tobacco is selected by the manufacturers according to the leaf grades and specific blends in order to maintain the distinctive character of the cigarettes. The various ingredients are added to several brands to keep the tobacco moist, aiding in the manufacturing process, contributing to the unique taste, and replenishes the natural sugars present in the leaves during curing.

The rising trend of organic products has encouraged manufacturers to produce cigarettes by using organic tobacco in their processing. There are several types of premium tobacco that are used by cigarette manufacturers includes Latakia, Brightleaf tobacco, Burley, Cavendish, and others. The tobaccos are hand-picked by the cultivators to retain their original properties with a loss of moisture and sugar to give a premium taste in the cigarettes.

The Europe cigarette market report provides both quantitative and qualitative insights into the Europe cigarette industry. A detailed analysis of the market in terms of market size and growth rate for all the segments. The market is segmented by gender, age group, pricing, size, and country.

In terms of gender, the market is segmented into males and females. In terms of age, the market is segmented into the age group ranges from years 15-24 years, 25-44 years, 45-64 years, and 65 years & above. In terms of pricing, the market is segmented as premium, economy, mid /ultra-low. In terms of size, the market is segmented into king, regular, and slim/ ultra slim sizes. In terms of geography, the market is segmented into main countries, such as the U.K., France, Germany, BENELUX, Italy, Russia, Poland, Romania, Czech Republic, and Rest of Europe.

Along with this, the Europe cigarette market report provides an elaborative analysis of the market dynamics such as drivers, restraints, opportunities, and trends in the market. A brief competitive landscape is provided. There are various key insights that are provided along with the report such as an overview of the market, recent developments in the Europe cigarette industry which includes product launches, major mergers and acquisitions, regulatory scenarios, trade analysis, and key industry trends.

Segmentation

Key Development Industry

• In March 2018, Philip Morris International acquired the remaining 49% interest in Tabacalera Costarricense and Mendiol S.A. worth US$ 95 million. With this acquisition, the company now owns 100% of these Costa Rican affiliates.


• In July 2017, British American Tobacco p.l.c. has announced the completion of the acquisition of Reynolds American Inc. to create stronger and global presence of their cigarettes.