Europe Tobacco Market Size and Share Outlook - Forecast Trends and Growth Analysis Report (2025-2034)

The Europe tobacco market size reached around USD 177.11 Billion in 2024. The market is projected to grow at a CAGR of 1.05% between 2025 and 2034 to reach nearly USD 196.61 Billion by 2034. The market is being driven by the increasing demand for flavoured tobacco, the rising focus on sustainability, and technological advancements.

Europe Tobacco Market Summary

Market Size 2024

• USD Billion 177.11

Market Size 2034

• USD Billion 196.61
• CAGR 2025-2034
• 1.05%

CAGR 2025-2034 - Market by Country

• Germany
• 1.20%

CAGR 2025-2034 - Market by Country

• Italy
• 0.65%

CAGR 2025-2034 - Market by Type

• Cigarillos
• 1.19%

CAGR 2025-2034 - Market by Distribution Channel

• Online
• 3.15%

Market Share by Country 2024

• Germany
• 23.3%

Europe Tobacco Market Growth

Over 20% of the population in countries like Croatia and Germany smoke tobacco daily. Nearly 26.2% of the Serbian and 23.6% of the Greek population are daily smokers. Boxed cigarettes are the most popular format of tobacco consumption, with nearly 7/10 Europeans using them daily due to their unique shape, high tobacco content, practicality of storage, and experience of smooth tobacco intake. Over 30% of the population in Romania, Latvia, and Austria consume tobacco daily, while only 8% of Sweden’s population smoke regularly.

Europe aims to curb nicotine addiction in its Beating Cancer Plan and achieve a tobacco-free generation by 2040. It aims to minimise tobacco consumption to less than 5% of its population and improve peoples’ overall health and lifespan. The European Commission has introduced a string of directives for taxing, advertising, and distribution of tobacco products, which includes usage of plain packaging, prohibition of online cross-border sales, and preventing the starring of teenage children in cigarette advertisements, among others. The adoption of e-cigarettes has surged steadily in Europe, due to increased awareness of the side effects of tobacco consumption among people. This is expected to contribute to a surge in the demand for tobacco products that minimise the intake of nicotine among people, thereby leading to market growth.

Key Trends and Developments

The Europe tobacco market expansion is being driven by the growing popularity of heated tobacco products; increasing demand for flavoured tobacco; technological advancements; and rising emphasis on sustainability.

November 2024

Tabacalera announced the launch of Henry Clay War Hawk cigars, its latest cigar brand in Europe. The brand is slated to be available in 2025 in Switzerland and Italy.

September 2024

Tabaterra announced the launch of Premier, its premium cigarette brand designed for customers who appreciate quality and sophistication. It includes four SKUs, Premier Compact Aroma, Premier Compact, Premier Compact Aroma, and Premier Compact Chocolate, and is equipped with exceptional flavour profiles.

July 2024

Habanos S.A. launched the La Gloria Cubana Podium, its latest edition of the regional cigar, in France. The cigar, priced at EUR 40, is offered in 10-count boxes, measures 6 1/10 inches (155mm) long, and boasts a foot band with the word Podium.

June 2024

Trinidad Cabildos, one of three Cuban Edición Limitada cigars, was launched in London, the United Kingdom. The cigar measures 6 3/8 inches long by 46 ring gauge and has a suggested price of EUR 795. The cigar is the second Premier Pack produced by Habanos and only 10,000 numbered packs were made, making it a premium product.

Rising popularity of heated tobacco products

Heated tobacco products are witnessing a significant surge in popularity as they can emit lower levels of harmful and potentially harmful constituents as compared to cigarette smoke.

Growing demand for flavoured tobacco

There is a rising demand for flavoured tobacco, especially among youth and young adults, as it is affordable, available in bright and colourful packaging, and boasts appealing flavour. The availability of different tobacco in different flavours such as dessert, candy, fruit, and cinnamon is further bolstering the Europe tobacco market development.

Technological advancements

The integration of innovative technologies and features such as app connectivity and temperature control in tobacco products, especially in heated tobacco products, to track nicotine consumption and customise the smoking experience is driving the market.

Increasing emphasis on sustainability

There is a growing emphasis on sustainable tobacco production that mitigates environmental impact, ensures economic viability, and promotes ethical farming. Tobacco farmers are increasingly adopting practices such as organic farming and agroforestry to lower chemical usage and soil degradation and meet evolving customer demands for responsibly sourced products.

Europe Tobacco Market Trends

The robust growth of the e-commerce sector is positively influencing the Europe tobacco market trends and dynamics. Vaping devices, nicotine pouches, and e-liquids are increasingly purchased via online platforms due to their convenience, the availability of diverse brands and products, and competitive prices. Moreover, growing concerns regarding waste generated by tobacco butts are prompting key players to develop biodegradable filters to improve cigarette butt disposal.

Europe Tobacco Industry Segmentation

The report titled “Europe Tobacco Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Breakup by Product

• Cigarettes
• Cigars
• Cigarillos
• Smokeless Tobacco
• Others

Breakup by Distribution Channel

• Supermarkets and Hypermarkets
• Speciality Stores
• Online
• Others

Breakup by Country

• Germany
• United Kingdom
• France
• Italy
• Others

Europe Tobacco Market Share

Based on country, the Europe tobacco market is segmented into Germany, Italy, the United Kingdom, and France, among others. Germany is estimated to grow at a CAGR of 1.2% during the forecast period of 2025-2034 due to the growing trend of premiumisation and the rising demand for customised smoking experiences among affluent tobacco users. Meanwhile, Italy is projected to grow at a CAGR of 0.6% between 2025 and 2034 due to the growing consumption of smokeless tobacco products, the robust growth of the e-commerce sector, and an increasing number of tobacco companies offering direct-to-door deliveries.

CAGR 2025-2034 - Market by

• Country
• Germany
• 1.2%
• Italy
• 0.6%
• United Kingdom
• France
• Others

Leading Companies in the Europe Tobacco Market

Key Europe tobacco market players are transitioning from cigarette to smoke-free products as they are considered healthier alternatives to cigarettes. Tobacco companies in Europe are attempting to achieve net-zero carbon emissions and focusing on sustainable sourcing of tobacco and eco-friendly packaging to improve their sustainability profile.

JT International SA

JT International SA, established in 1999 and headquartered in Geneva, Switzerland, is a prominent tobacco company that sells and markets its products in more than 130 markets. Boasting 46,000 employees, the company operates in processed food and pharmaceutical businesses.

Philip Morris International Inc.

Philip Morris International Inc., established in Connecticut, United States and established in 1847, is a leading international tobacco company. Boasting a global workforce of nearly 83,170, the company is listed on the New York Stock Exchange.

British American Tobacco Plc

British American Tobacco Plc, established in 1902 and headquartered in London, United Kingdom, is a leading consumer goods company. The company aims to migrate smokers from cigarettes to smokeless alternatives and become a smokeless business by 2035.

Imperial Brands Plc

Imperial Brands Plc, established in 1901 and headquartered in Bristol, United Kingdom, is a global FMCG company with operations in 120 countries. It has an employee base of 25,000 and is home to various brands such as JPS, Davidoff, and Rizla, among others.

Other players included in the Europe tobacco market report are Scandinavian Tobacco Group A/S, Landewyck Tobacco S.A, Karelia Tobacco Company Inc., and Continental Tobacco Corp., among others.