Tobacco product sales experienced a slight surge in 2024, suggesting a steady market with no apparent rise in tobacco consumption/ Despite moderate tax increases, the tobacco market remained stable in the said year.
Germany witnesses a 3.5% increase in tobacco sales in 2024, according to the Federal Statistical Office's latest report. Cigarette sales surged to 66.2 billion units, up from 64.0 billion in 2023. An uptick of 6.7% was also observed in fine-cut tobacco for self-rolling, which reached 25,152 tons in 2024 compared to 23,581 tons in 2023.
However, it's crucial to note that the overall smoking trend in Germany remains stable, with no significant increase. The decline in the tobacco market, which began in 2002, still persists, as cigarette sales dropped from 145.1 billion units in 2002 to the current figures.
Jan Mücke, the CEO of the Federal Association of the Tobacco Industry and Novel Products (BVTE), attributes the rise in sales to the tobacco tax increase, effective from January 1, 2025. Manufacturers and importers have pre-ordered tax stamps with the higher tax rate for 2025 to ensure smooth production at the beginning of the year.
In 2024, the sale of water pipe tobacco increased by 75.1%, with 1,274 tons taxed compared to 728 tons in 2023. The maximum pack size of 25g was abolished on July 1, 2024, leading to a resurgence in sales. Cigar/cigarillo sales experienced a marginal increase of 0.1%, while pipe tobacco continues to decline (-21.1%).
Mücke also highlights the impact of cross-border sales to some European neighboring countries, such as France and the Netherlands. In 2024, at least 1 billion cigarettes taxed in Germany were sold to customers from neighboring countries. This trend is driven by higher cigarette taxes in France and the Netherlands compared to Germany.
Border purchases are also popular among German cigarette consumers. Waste studies indicate that every fifth cigarette in 2024 was not taxed in Germany, with most of these cigarettes coming from Poland (44%). Following tax increases in Poland, single purchases and demand for untaxed cigarettes have decreased.
The tobacco tax for heated tobacco and e-cigarettes was also increased as of January 1st. Although not yet fully marketed, e-cigarette sales contributed €265 million to the tobacco tax revenue in 2024, representing a 31.8% increase in tax revenue compared to 2023.
In summary, despite the tobacco market generally experiencing a decline in Germany, a 3.5% increase in sales was observed in 2024. This increase is primarily due to tax and policy changes and pre-tax purchases, ensuring smooth production at the beginning of the year. Jan Mücke, the CEO of the BVTE, believes that the market remains stable with moderate tax increases and fewer border purchases. The next tax increase is scheduled for 2026.
For inquiries, contact:
Federal Association of the Tobacco Industry and Novel Products (BVTE)Jan MückeManaging DirectorGeorgenstraße 25, 10117 BerlinTel. +49 30 88 66 36 - [email protected]
Original content from: Federal Association of the Tobacco Industry and Novel Products (BVTE), transmitted via news aktuellSource: ots
[1] The figures for fine-cut tobacco do not necessarily imply increases in smoking rates.[2] The declining tobacco market trend in Germany is expected to persist as health policies and increased taxes continue to be implemented.[3] Data from Euromonitor, as cited in the original text.[4] Cross-border sales are driven by the difference in cigarette taxes between neighboring countries.[5] The EU tobacco market is also in decline, with health policies and increased taxes contributing to the trend.
- The increase in tobacco sales in 2024, as shown in the Federal Statistical Office's report, is not only limited to cigarette sales, but also extends to other forms of tobacco, such as water pipe tobacco and heated tobacco, which are part of the broader industry and finance sectors.
- Jan Mücke, the CEO of the Federal Association of the Tobacco Industry and Novel Products (BVTE), has pointed out that the rise in tobacco sales is not solely due to an increase in smoking rates within Germany, but also to factors like cross-border sales and tax policies in the business and finance sectors, particularly the upcoming tax increase in 2025.
