Europe Tobacco Market Expected to Reach 176.4 Thousand Tons by 2033 - IMARC Group

Europe Tobacco Market Statistics, Outlook and Regional Analysis 2025-2033

The Europe tobacco market size was valued at 140.0 Thousand Tons in 2024, and it is expected to reach 176.4 Thousand Tons by 2033, exhibiting a growth rate (CAGR) of 2.4% from 2025 to 2033.

The growing disposable income is one of the main factors adding to the market growth. In Germany, disposable income in 2023 was nearly 6.5% more than in 2022. Also, consumer spending in the country climbed by nearly 6.2%. As people have more money to spend, they are more likely to purchase lifestyle products, like tobacco is propelling the market growth. Consumers who are looking for unique experiences are switching towards cigars and flavored tobacco products. In addition, the rising spending power also supports innovative alternatives like e-cigarettes.

Additionally, the surging smoking population is also propelling the industry’s demand. Despite knowing the negative effects of smoking, a significant number of people in the region are regular smokers due to social habits. Also, the European region has the highest number of smokers. In 2019, more than 17% of people in the EU were daily smokers. This growing number of smokers propels the demand for cigarettes. Besides this, the growing younger population are also getting attracted towards innovative options, further adding to the market demand. Furthermore, various manufacturers are launching innovative products like e-cigarettes and smoke-free alternatives. In September 2024, Philip Morris International introduced a smoke-free option, IQOS ILUMA i Prime, in Europe, Romania. The product heats tobacco without burning it. Also, it aims to replace cigarettes, further driving the industry’s growth. Besides this, in many parts of the region, smoking remains a social activity, especially in celebrations. This acceptance of tobacco is proliferating the market demand. In addition, pipe tobacco is associated with status, which further makes it a key attraction in social gatherings. Social habits continue to drive demand for both traditional tobacco products and newer alternatives, thereby expanding the product demand.

Europe Tobacco Market Statistics, By Region

The market research report has also provided a comprehensive analysis of all the major regional markets, which include Germany, France, the United Kingdom, Italy, Spain, and others. These regions focus on introducing alternatives, including smokeless tobacco, to cater to consumer preferences.

Germany Tobacco Market Trends:

Germany is seeing an increasing demand for organic tobacco products. The growth of these products is driven by the surging shift towards high-quality options among consumers. Additionally, brands like Davidoff and Natural American Spirit are gaining momentum. Besides this, there has been a significant rise in the number of smoking population, which is further adding to the country's growth.

France Tobacco Market Trends:

In France, there is a substantial rise in the use of heated tobacco products. In addition, companies like Philip Morris International have launched IQOS devices, which further attract the younger population. Furthermore, the rising government initiatives to limit traditional cigarette consumption are also accelerating the market demand.

United Kingdom Tobacco Market Trends:

The growth in the United Kingdom is driven by the escalating demand for e-cigarette and vaping products. Brands like Juul and Vype have experienced fast growth. Moreover, the UK government has supported harm reduction methods. Also, Public Health England claimed vaping is less harmful than smoking. This strong policy is contributing to the market growth.

Italy Tobacco Market Trends:

Hand-rolled cigarettes are gaining momentum in Italy. Rolling tobacco has grown in popularity among younger smokers due to its lower cost compared to manufactured cigarettes. Additionally, brands such as Golden Virginia and Samson have become extremely popular. Apart from this, Italy's interest in hand-rolled tobacco is less prevalent in other European regions, further propelling the industry demand.

Spain Tobacco Market Trends:

The growing tobacco tourism, especially in areas like the Canary Islands, is escalating the demand for these products in Spain. Moreover, this island has lower taxes, which makes tobacco products more affordable, further driving the market demand. Besides this, the increasing penetration towards smoking is acting as another growth-inducing factor. Also, in Spain, Marlboro sold tobacco products worth more than USD 1 Billion.

Others Tobacco Market Trends:

Cross-border trade within the European Union (EU) is playing a crucial role in shaping the regional market. The inflating online sales and the rising e-commerce industry in the other parts of the region are also acting as a significant growth-inducing factor.

Top Companies Leading in the Europe Tobacco Industry

The report has also provided a comprehensive analysis of the competitive landscape in the market. These companies focus on producing tobacco products for gifts or as personal consumption. They also provide convenience, thereby expanding accessibility and sales.

Europe Tobacco Market Segmentation Coverage

• On the basis of the type, the market has been bifurcated into cigarettes, roll your own, cigars, cigarillos, smokeless tobacco, and others. Cigarettes are already rolled tobacco products on thin paper. Moreover, these contain processed tobacco combined with other additives to enhance flavor. Besides this, roll-your-own tobacco products involve loose tobacco that people can roll into cigarettes using specialized papers. Furthermore, cigars are tightly rolled bundles of tobacco leaves wrapped in a leaf.