https://www.ibisworld.com/about/termsofuse/https://www.ibisworld.com/about/termsofuse/
Europe’s tobacco product manufacturing industry is undergoing a significant transformation as traditional cigarette consumption declines. For decades, this industry was driven by a steady demand for cigarettes, but changing consumer habits and stringent government regulations are pushing tobacco companies to rethink their strategies. These companies are now diversifying their portfolios, venturing into the production of vaping devices, heated tobacco products and other alternative nicotine delivery systems. Such shifts indicate a proactive adaptation to the evolving market landscape and public health concerns over cigarette smoking. Overall, industry revenue is projected to climb at a compound annual rate of 2.6% over the five years through 2024, including a projected 3.9% drop in 2024 alone to reach €77.6 billion. In response to decreasing smoking rates, major players like Philip Morris International (PMI) are pivoting towards innovation in smoke-free products, with PMI investing heavily in heated tobacco and e-cigarettes. This move is emblematic of the broader industry trend, aiming to capture the rising consumer interest in “healthier” nicotine alternatives. Meanwhile, European governments aren't easing up on their crackdowns on tobacco use. France, for example, has seen a dramatic price hike in cigarette packets as a part of its National Tobacco Control Program. The UK and other EU countries are also implementing stringent measures like plain packaging laws and high duty charges on cigarette sales to deter smoking. These regulatory pressures, together with changing consumer preferences, are reshaping the industry's landscape. Looking ahead, the tobacco industry faces uncertain prospects with potential threats from legislation aiming to phase out smoking altogether in some countries. Finland’s target to become a tobacco and nicotine-free country by 2030 and similar initiatives elsewhere spell a challenging future for traditional tobacco products. However, luxury tobacco segments appear resilient amid these headwinds. High-end cigars and premium cigarettes continue to enjoy prestige and growing demand in markets like Spain. The road ahead for tobacco manufacturers will hinge on their ability to innovate and cater to this shifting consumer terrain towards healthier alternatives and occasional high-quality indulgence. Revenue is projected to slump at a compound annual rate of 2.5% over the five years through 2029 to €87.7 billion.
https://www.ibisworld.com/about/termsofuse/https://www.ibisworld.com/about/termsofuse/
Europe’s tobacco product manufacturing industry is undergoing a significant transformation as traditional cigarette consumption declines. For decades, this industry was driven by a steady demand for cigarettes, but changing consumer habits and stringent government regulations are pushing tobacco companies to rethink their strategies. These companies are now diversifying their portfolios, venturing into the production of vaping devices, heated tobacco products and other alternative nicotine delivery systems. Such shifts indicate a proactive adaptation to the evolving market landscape and public health concerns over cigarette smoking. Overall, industry revenue is projected to climb at a compound annual rate of 2.6% over the five years through 2024, including a projected 3.9% drop in 2024 alone to reach €77.6 billion. In response to decreasing smoking rates, major players like Philip Morris International (PMI) are pivoting towards innovation in smoke-free products, with PMI investing heavily in heated tobacco and e-cigarettes. This move is emblematic of the broader industry trend, aiming to capture the rising consumer interest in “healthier” nicotine alternatives. Meanwhile, European governments aren't easing up on their crackdowns on tobacco use. France, for example, has seen a dramatic price hike in cigarette packets as a part of its National Tobacco Control Program. The UK and other EU countries are also implementing stringent measures like plain packaging laws and high duty charges on cigarette sales to deter smoking. These regulatory pressures, together with changing consumer preferences, are reshaping the industry's landscape. Looking ahead, the tobacco industry faces uncertain prospects with potential threats from legislation aiming to phase out smoking altogether in some countries. Finland’s target to become a tobacco and nicotine-free country by 2030 and similar initiatives elsewhere spell a challenging future for traditional tobacco products. However, luxury tobacco segments appear resilient amid these headwinds. High-end cigars and premium cigarettes continue to enjoy prestige and growing demand in markets like Spain. The road ahead for tobacco manufacturers will hinge on their ability to innovate and cater to this shifting consumer terrain towards healthier alternatives and occasional high-quality indulgence. Revenue is projected to slump at a compound annual rate of 2.5% over the five years through 2029 to €87.7 billion.
https://www.ibisworld.com/about/termsofuse/https://www.ibisworld.com/about/termsofuse/
Europe’s tobacco product manufacturing industry is undergoing a significant transformation as traditional cigarette consumption declines. For decades, this industry was driven by a steady demand for cigarettes, but changing consumer habits and stringent government regulations are pushing tobacco companies to rethink their strategies. These companies are now diversifying their portfolios, venturing into the production of vaping devices, heated tobacco products and other alternative nicotine delivery systems. Such shifts indicate a proactive adaptation to the evolving market landscape and public health concerns over cigarette smoking. Overall, industry revenue is projected to climb at a compound annual rate of 2.6% over the five years through 2024, including a projected 3.9% drop in 2024 alone to reach €77.6 billion. In response to decreasing smoking rates, major players like Philip Morris International (PMI) are pivoting towards innovation in smoke-free products, with PMI investing heavily in heated tobacco and e-cigarettes. This move is emblematic of the broader industry trend, aiming to capture the rising consumer interest in “healthier” nicotine alternatives. Meanwhile, European governments aren't easing up on their crackdowns on tobacco use. France, for example, has seen a dramatic price hike in cigarette packets as a part of its National Tobacco Control Program. The UK and other EU countries are also implementing stringent measures like plain packaging laws and high duty charges on cigarette sales to deter smoking. These regulatory pressures, together with changing consumer preferences, are reshaping the industry's landscape. Looking ahead, the tobacco industry faces uncertain prospects with potential threats from legislation aiming to phase out smoking altogether in some countries. Finland’s target to become a tobacco and nicotine-free country by 2030 and similar initiatives elsewhere spell a challenging future for traditional tobacco products. However, luxury tobacco segments appear resilient amid these headwinds. High-end cigars and premium cigarettes continue to enjoy prestige and growing demand in markets like Spain. The road ahead for tobacco manufacturers will hinge on their ability to innovate and cater to this shifting consumer terrain towards healthier alternatives and occasional high-quality indulgence. Revenue is projected to slump at a compound annual rate of 2.5% over the five years through 2029 to €87.7 billion.
https://www.ibisworld.com/about/termsofuse/https://www.ibisworld.com/about/termsofuse/
Europe’s tobacco product manufacturing industry is undergoing a significant transformation as traditional cigarette consumption declines. For decades, this industry was driven by a steady demand for cigarettes, but changing consumer habits and stringent government regulations are pushing tobacco companies to rethink their strategies. These companies are now diversifying their portfolios, venturing into the production of vaping devices, heated tobacco products and other alternative nicotine delivery systems. Such shifts indicate a proactive adaptation to the evolving market landscape and public health concerns over cigarette smoking. Overall, industry revenue is projected to climb at a compound annual rate of 2.6% over the five years through 2024, including a projected 3.9% drop in 2024 alone to reach €77.6 billion. In response to decreasing smoking rates, major players like Philip Morris International (PMI) are pivoting towards innovation in smoke-free products, with PMI investing heavily in heated tobacco and e-cigarettes. This move is emblematic of the broader industry trend, aiming to capture the rising consumer interest in “healthier” nicotine alternatives. Meanwhile, European governments aren't easing up on their crackdowns on tobacco use. France, for example, has seen a dramatic price hike in cigarette packets as a part of its National Tobacco Control Program. The UK and other EU countries are also implementing stringent measures like plain packaging laws and high duty charges on cigarette sales to deter smoking. These regulatory pressures, together with changing consumer preferences, are reshaping the industry's landscape. Looking ahead, the tobacco industry faces uncertain prospects with potential threats from legislation aiming to phase out smoking altogether in some countries. Finland’s target to become a tobacco and nicotine-free country by 2030 and similar initiatives elsewhere spell a challenging future for traditional tobacco products. However, luxury tobacco segments appear resilient amid these headwinds. High-end cigars and premium cigarettes continue to enjoy prestige and growing demand in markets like Spain. The road ahead for tobacco manufacturers will hinge on their ability to innovate and cater to this shifting consumer terrain towards healthier alternatives and occasional high-quality indulgence. Revenue is projected to slump at a compound annual rate of 2.5% over the five years through 2029 to €87.7 billion.
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https://www.ibisworld.com/about/termsofuse/https://www.ibisworld.com/about/termsofuse/
Europe’s tobacco product manufacturing industry is undergoing a significant transformation as traditional cigarette consumption declines. For decades, this industry was driven by a steady demand for cigarettes, but changing consumer habits and stringent government regulations are pushing tobacco companies to rethink their strategies. These companies are now diversifying their portfolios, venturing into the production of vaping devices, heated tobacco products and other alternative nicotine delivery systems. Such shifts indicate a proactive adaptation to the evolving market landscape and public health concerns over cigarette smoking. Overall, industry revenue is projected to climb at a compound annual rate of 2.6% over the five years through 2024, including a projected 3.9% drop in 2024 alone to reach €77.6 billion. In response to decreasing smoking rates, major players like Philip Morris International (PMI) are pivoting towards innovation in smoke-free products, with PMI investing heavily in heated tobacco and e-cigarettes. This move is emblematic of the broader industry trend, aiming to capture the rising consumer interest in “healthier” nicotine alternatives. Meanwhile, European governments aren't easing up on their crackdowns on tobacco use. France, for example, has seen a dramatic price hike in cigarette packets as a part of its National Tobacco Control Program. The UK and other EU countries are also implementing stringent measures like plain packaging laws and high duty charges on cigarette sales to deter smoking. These regulatory pressures, together with changing consumer preferences, are reshaping the industry's landscape. Looking ahead, the tobacco industry faces uncertain prospects with potential threats from legislation aiming to phase out smoking altogether in some countries. Finland’s target to become a tobacco and nicotine-free country by 2030 and similar initiatives elsewhere spell a challenging future for traditional tobacco products. However, luxury tobacco segments appear resilient amid these headwinds. High-end cigars and premium cigarettes continue to enjoy prestige and growing demand in markets like Spain. The road ahead for tobacco manufacturers will hinge on their ability to innovate and cater to this shifting consumer terrain towards healthier alternatives and occasional high-quality indulgence. Revenue is projected to slump at a compound annual rate of 2.5% over the five years through 2029 to €87.7 billion.