The price of cigarettes is substantially different across Europe. As of 2024, the most expensive EU country in which to purchase cigarettes was Ireland, with a pack of 20 cigarettes retailing at 13.25 euros, followed by France at 10.95 euros. Cigarette prices in Europe are driven by the respective taxes imposed within each of the member states and consist of a specific duty per 1,000 cigarettes and an ad valorem rate on the recommended retail. Tobacco taxes Variations in cigarette prices are often a result of the different tobacco taxes across European countries. For instance, in Finland where the price for a pack of cigarettes is relatively high, the tobacco tax makes up more than 70 percent of the price. When comparing cigarette prices to the share of individuals who currently smoke cigarettes, cigars, cigarillos, or a pipe in European countries, a general trend is observable. Many of those countries with relatively high cigarette prices have comparably lower shares of smokers. Nonetheless, many other factors can influence smoking behavior, besides prices. For example, many people in a variety of European countries have stated that they smoked more cigarettes due to the coronavirus outbreak. Cigarette consumption in Germany In Germany, the most popular type of cigarettes in Germany are branded cigarettes, followed by fine-cut tobacco. The average price of cigarettes in Germany has continuously increased during the last half of a century. A particularly large increase was noticed between 2000 and 2005. The development of the average price of cigarettes and the tobacco tax in Germany are correlated. Pushing up the price of cigarettes has led to a decrease in the average consumption of (taxed) cigarettes in Germany. In 2000, an average of 382 million cigarettes were consumed per day. By contrast, an average of 175 million cigarettes were smoked per day in 2023.

Graph and download economic data for Consumer Price Index for All Urban Consumers: Tobacco and Smoking Products in U.S. City Average (CUSR0000SEGA) from Jan 1986 to Jun 2025 about tobacco, urban, production, consumer, CPI, inflation, price index, indexes, price, and USA.

As of 2024, the Northeast United States lead the nation in tax rates on cigarettes. New York was the overall leader, imposing a 5.35 dollars tax per pack of cigarettes. The District of Columbia and Connecticut followed suit, tacking on 5.03 and 4.35 dollars of tax per pack of cigarettes sold respectively. In 2019, New York received over 2 billion U.S. dollars from tobacco tax revenue and tobacco legal settlement payments.

The relationship between taxes and smoking rates

States, like New York and Connecticut, use tax on cigarettes as a means to curb smoking among citizens. There is a clear inverse relationship between the price of a pack and cigarettes sales. Since prices have risen across the nation since the mid 1990’s, due mostly to tax increases, cigarette sales have drastically declined. According to the CDC, smoking increases one’s chance of developing lung cancer by 25 times, cardiovascular disease by 4 times, and death from a chronic obstructive lung disease by 13 times. Improving the lives of its citizens and reducing the burden on the health care system both factor into states’ desires to curb smoking.

States that have some of the lowest taxes on cigarettes, like West Virginia, Kentucky, and Arkansas, tend to have the highest smoking rates in the country. Comparing Missouri, the state with the lowest cigarette taxes in the nation, with New York, the trend is obvious. Roughly 23 percent of Missouri’s population are smokers compared to 15.5 percent of New York’s. While cigarette sales have declined due to taxes, health authorities are concerned about the rise of vaping and electronic cigarettes. E-cigarettes are often seen as a safer alternative to smoking and are currently the most used tobacco product by high school students.

In 2023, approx. 16B units of cigarettes containing tobacco were imported into the United States; waning by -5.6% against the year before.

This graph presents the price of a cigarette pack in selected countries in Latin America in 2015. Among the presented countries, Colombia was the cheapest country to purchase a 20-cigarette pack, at 2.06 U.S. dollars, whereas in Chile, the price amounted to 5.03 U.S. dollars.

As of January 2020, after Mexico increased its taxes on cigarettes, the average price of a Marlboro or Camel pack in the country amounted to approximately 63 Mexican pesos. In comparison, the cost of a pack of Lucky Strike cigarettes was equal to 56 Mexican pesos.

Marlboro as market leader

Marlboro is the dominant brand of cigarettes in the North American country. Owned by Phillip Morris, the brand accounted for more than half of the market in 2019. Before the industry’s increase in taxes, the price of a pack of Marlboro cigarettes in Mexico City, had remained relatively stable, with a value equivalent to approximately 2.8 U.S. dollars.

Tobacco production in Mexico

A proper temperature, suitable soil, and desired water availability make all the difference when it comes to cultivation. In the case of tobacco crops in Mexico, the ideal harvesting setting has been found in the western coastal state of Nayarit. As a predominantly agricultural region, Nayarit produces most of the country’s tobacco. Out of the 17 thousand metric tons of tobacco produced in the country in 2019, close to 15 thousand were harvested there.

Cigarettes in Germany have become increasingly more expensive, at around ** euro cents per cigarette in 2023. A significant spike is visible between 2000 and 2005. How is the annual price increase affecting smoking? Up in smoke Cigarette prices are ruled by specific taxes imposed within a country. In Germany, revenues from the tobacco tax amounted to **** billion euros in 2022. With the habit long since confirmed as unhealthy and burning increasingly larger holes in consumer budgets, smokers may reconsider buying a packet. The average daily use of taxed cigarettes in Germany has been decreasing in the last ten years. If in 2004 around *** million cigarettes were smoked, by 2022 the number had fallen to *** million. Which EU country lights up the most? Health considerations as well as financial ones typically influence cigarette consumption trends among the population, and with healthy lifestyle suggestions becoming more and more mainstream, it is no wonder that consumption levels are falling. The coronavirus (COVID-19) pandemic may have also influenced this development. Among European countries, Germany does not have the highest share of individuals smoking daily. In fact, the three leading nations in this case are Turkey, Bulgaria and Latvia.

Cigarette and tobacco producers have displayed remarkable resilience in the past five years, even as external headwinds, including regulatory action, changing social norms and fierce product substitution, have mounted. While the share of adult smokers has resumed a steady decline after a brief plateau, producers have maintained and even expanded revenue by strategically raising retail prices. Price hikes have outpaced volume declines, as tobacco’s highly addictive nature locks in a loyal buyer base that’s proved willing to absorb higher costs. This dynamic, alongside product mix innovation, has kept cashflow strong. Despite record surges in input and regulatory costs and the unrelenting contraction of the customer base, the industry’s structural inelasticity and strategic pricing have shielded top-line revenue from dramatic drops. Thus, while revenue has been expanding at a CAGR of 1.0% over the past five years, it's largely due to short-term spikes. Revenue will reverse course in 2025, dipping 5.6% to total $64.2 billion. The premium and flavored cigar product segment, buoyed by young adults and a renewed interest in niche, high-end experiences, has offset some of the steep declines facing traditional cigarettes and smokeless tobacco. Flavored cigars, in particular, have thrived as regulatory bans and health campaigns have targeted flavored cigarette products. Yet this growth hasn’t come without new risks: ongoing legal and political scrutiny has brought fresh flavor bans and proposals—especially at the state level—leaving the future shape of the market uncertain and requiring greater agility from both large and small manufacturers. Meanwhile, the proliferation of e-cigarettes and tobacco-free nicotine options has siphoned off would-be new smokers, reducing the scope for expansion and sharpening competition across the broader nicotine landscape. Looking ahead, the industry faces a flat but increasingly volatile outlook. State-led excise tax hikes, generational bans and flavor restrictions are set to tighten the squeeze, especially as core participation and employment continue their downward drift. Revenue will be stabilized by the industry’s unique ability to pass through additional costs to a dwindling, but fiercely loyal, consumer base; yet this same reliance on addicted users leaves little room for organic growth or meaningful expansion. International trade will offer little relief: global competition, weak demand and the continued offshoring of domestic manufacturing will keep exports a minor factor. Revenue is forecast to stagnate over the next five years, growing at a CAGR of less than 0.1%, reaching $64.3 billion in 2030.

In 2024, the U.S. tobacco and cigarette market increased by 17% to $96.5B, rising for the fourth consecutive year after two years of decline. Over the period under review, consumption saw a remarkable increase. Tobacco and cigarette consumption peaked in 2024 and is likely to see gradual growth in the near future.

Graph and download economic data for Producer Price Index by Industry: Tobacco Manufacturing: Cigarettes, Excluding Electronic (PCU3122303122301) from Jan 1965 to May 2025 about tobacco, manufacturing, PPI, industry, inflation, price index, indexes, price, and USA.

Graph and download economic data for Producer Price Index by Commodity: Miscellaneous Products: Cigarettes, Excluding Electronic (WPU1521) from Jan 1926 to May 2025 about tobacco, miscellaneous, commodities, PPI, inflation, price index, indexes, price, and USA.

The price of cigarettes in the United Kingdom has substantially increased each year since 2000. In 2022, the average retail price of a 20 pack of cigarettes was 12.61 British pounds.

Cigarette taxes

As of 2022, the most expensive country in which to purchase cigarettes in Europe was Ireland, with the UK in second place. Cigarette prices across Europe are driven by the respective taxes imposed within each of the member states and consist of a specific duty per thousand cigarettes and an ad valorem rate onto the recommended retail price, in addition to value added tax (VAT). Thus, the highest rates of taxation are reflected in the retail prices. Governments that impose such strong barriers to the purchasing of tobacco are considered 'nanny states', with high levels of control on other factors, such as advertising, bans of tobacco products on retail displays and graphic warnings on cigarette packs.

UK tobacco industry

The sales of tobacco in the UK has generally been decreasing since 2005. As of 2022, the annual expenditure was at about 21.3 billion British pounds, marking an overall decrease of over 40 percent compared to expenditure in 2005. However, despite the high taxes in the UK and the decrease in expenditure, the revenue of the tobacco industry is expected to grow in coming years. By 2027, the tobacco products market is forecast to have a revenue of about 25.6 billion British pounds.

United States - Consumer Price Index for All Urban Consumers: Tobacco and Smoking Products in U.S. City Average was 1612.24600 Index 1982-84=100 in March of 2025, according to the United States Federal Reserve. Historically, United States - Consumer Price Index for All Urban Consumers: Tobacco and Smoking Products in U.S. City Average reached a record high of 1612.24600 in March of 2025 and a record low of 19.50000 in February of 1947. Trading Economics provides the current actual value, an historical data chart and related indicators for United States - Consumer Price Index for All Urban Consumers: Tobacco and Smoking Products in U.S. City Average - last updated from the United States Federal Reserve on June of 2025.

Discover the forecasted growth in the United States tobacco market over the next decade, driven by increasing demand for cigarettes. By 2035, market volume is projected to reach 959B units, with a value of $34.5B.

United States CPI U: AW: GS: Tobacco & Smoking Products (TS) data was reported at 0.693 % in 2017. This records an increase from the previous number of 0.665 % for 2016. United States CPI U: AW: GS: Tobacco & Smoking Products (TS) data is updated yearly, averaging 0.818 % from Dec 1997 (Median) to 2017, with 21 observations. The data reached an all-time high of 1.402 % in 2001 and a record low of 0.665 % in 2016. United States CPI U: AW: GS: Tobacco & Smoking Products (TS) data remains active status in CEIC and is reported by Bureau of Labor Statistics. The data is categorized under Global Database’s United States – Table US.I011: Consumer Price Index: Urban: Weights (Annual).

Learn about the expected upward trend in the United States cigarette market over the next decade due to rising demand for tobacco-containing cigarettes. By 2035, the market volume is projected to reach 959 billion units, with a market value of $34.5 billion.

Discover the expected growth in the United States market for tobacco-containing cigarettes over the next decade, with projections indicating an increase in both volume and value terms. By 2035, the market is predicted to reach 959B units and $34.5B, respectively.

United States CPI UW: GS: TS: Tobacco Products excl Cigarettes data was reported at 0.058 % in Jun 2018. This records an increase from the previous number of 0.058 % for May 2018. United States CPI UW: GS: TS: Tobacco Products excl Cigarettes data is updated monthly, averaging 0.057 % from Jan 1998 (Median) to Jun 2018, with 246 observations. The data reached an all-time high of 0.067 % in Dec 2001 and a record low of 0.042 % in Jun 2008. United States CPI UW: GS: TS: Tobacco Products excl Cigarettes data remains active status in CEIC and is reported by Bureau of Labor Statistics. The data is categorized under Global Database’s USA – Table US.I010: Consumer Price Index: Urban: Weights.

2005-2009. SAMMEC - Smoking-Attributable Mortality, Morbidity, and Economic Costs. Smoking-attributable mortality (SAM) is the number of deaths caused by cigarette smoking based on diseases for which the U.S. Surgeon General has determined that cigarette smoking is a causal factor.

The U.S. cigarettes containing tobacco market was estimated at $26.5B in 2024, growing by 2.4% against the previous year. Overall, consumption, however, continues to indicate a slight descent. As a result, consumption reached the peak level of $42.6B. From 2023 to 2024, the growth of the market remained at a lower figure.