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Tobacco Product Manufacturing in Europe - Market Size, Industry Analysis, Trends and Forecasts (2024-2029)

ISIC 12 July 2024 Spotlight Report

Revenue

€77.6bn

2019-2024 2.6 %
2024-2029 X.X %

Employees

83,949

2019-2024 7.7 %
2024-2029 X.X %

Businesses

811

2019-2024 4.0 %
2024-2029 X.X %

Wages

€X.Xbn

2019-2024 X.X %
2024-2029 X.X %

Tobacco Product Manufacturing in Europe industry analysis

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.

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Industry Statistics and Trends

Tobacco Product Manufacturing in Europe key trends

Tobacco giants pivot to perceived healthier alternatives.

 

Aware of changing preferences and health concerns, these companies are now heavily investing in vaping and heated tobacco products, moving beyond traditional cigarettes to stay relevant.

European governments are steadfast in fighting smoking.

 

Despite falling smoking rates, efforts continue, like France's price hikes and the UK's plain packaging laws, underscoring their commitment to curbing tobacco consumption, especially among the youth.

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Tobacco Product Manufacturing in Europe

Industry Revenue

Total value and annual change from 2011-2029. Includes 5-year outlook.

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Tobacco Product Manufacturing in Europe market size (2019-2024)

Industry revenue has grown at a CAGR of 2.6 % over the past five years, to reach an estimated €77.6bn in 2024.

Trends and Insights

Tobacco companies are diversifying their portfolios to protect against the dwindling market

  • Seeing the writing on the wall with declining smoking rates are seeking new growth avenues. Manufacturers are expanding their portfolios to include vaping and alternative products, eager to capture the growing market of consumers looking for “healthier” nicotine sources.

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Tobacco Product Manufacturing in Europe outlook (2024-2029)

Market size is projected to grow over the next five years.

Threats to ban tobacco altogether loom

  • More countries are mulling over eliminating smoking entirely, giving the industry an uncertain future as many of its major markets may be cut off.

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Revenue

€77.6bn

2019-2024 2.6 %
2024-2029 X.X %

Employees

83,949

2019-2024 7.7 %
2024-2029 X.X %

Wages

€X.Xbn

2019-2024 X.X %
2024-2029 X.X %

European Leaders & Laggards

Europe Job Growth CAGR: 7.7 % *
  • Job Growth

Top 5 Countries

  1. Russia +20.2%
  2. Germany +16.4%
  3. United Kingdom +10.4%
  4. Greece +9.2%
  5. Liechtenstein +8.4%

Bottom 5 Countries

  1. Turkey -26.2%
  2. France -17.7%
  3. Bulgaria -13.9%
  4. Denmark -10.6%
  5. Lithuania -7.2%

* CAGR values are for the years 2019-2024.

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Biggest companies in the Tobacco Product Manufacturing in Europe

Company
Market Share (%)
2024
Revenue (€m)
2024
Profit (€m)
2024
Profit Margin (%)
2024
Philip Morris International Inc
33,837.6
5,976.1
17.7
British American Tobacco plc
31,842.0
12,340.6
38.8
Japan Tobacco Inc
17,750.1
4,344.6
24.5

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Tobacco Product Manufacturing in Europe

Products & Services Segmentation

Industry revenue broken down by key product and services lines.

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Top Questions Answered in this Report

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What is the market size of the Tobacco Product Manufacturing industry in Europe in 2024?

The market size of the Tobacco Product Manufacturing industry in Europe is €77.6bn in 2024.

How many businesses are there in the Tobacco Product Manufacturing in Europe industry in 2024?

There are 811 businesses in the Tobacco Product Manufacturing industry in Europe, which has grown at a CAGR of 4.0 % between 2019 and 2024.

Has the Tobacco Product Manufacturing industry in Europe grown or declined over the past 5 years?

The market size of the Tobacco Product Manufacturing industry in Europe has been growing at a CAGR of 2.6 % between 2019 and 2024.

What is the forecast growth of the Tobacco Product Manufacturing industry in Europe over the next 5 years?

Over the next five years, the Tobacco Product Manufacturing industry in Europe is expected to grow.

Which countries have the most businesses in the Tobacco Product Manufacturing industry in Europe?

The European country with the most businesses in the Tobacco Product Manufacturing industry is Russia.

How competitive is the Tobacco Product Manufacturing industry in Europe?

The level of competition is moderate and increasing in the Tobacco Product Manufacturing industry in Europe.

Related Industries

This industry is covered in 37 countries

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Table of Contents

About this industry

Industry definition

Companies in this industry manufacture tobacco products and products of tobacco substitutes, including cigarettes, fine-cut tobacco, cigars, pipe tobacco, chewing tobacco and snuff.

Related Terms

CigarilloE-CigarettesRolling Tobacco

What's included in this industry?

Companies

Philip Morris International IncBritish American Tobacco plcJapan Tobacco Inc

Industry Code

ISIC 2006

12 - Manufacture of tobacco products in Europe

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Performance

Key Takeaways

Tobacco companies are diversifying their portfolios to protect against the dwindling market

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Revenue Highlights

Trends
  • Revenue
  • Current Year Revenue Growth
  • Revenue Volatility

Employment Highlights

Trends
  • Employees
  • Employees per Business
  • Revenue per Employee

Business Highlights

Trends
  • Businesses
  • Employees per Business
  • Revenue per Business

Profit Highlights

Trends
  • Total Profit
  • Profit Margin
  • Profit per Business

Current Performance

Charts
  • Revenue in the Tobacco Product Manufacturing in Europe industry (2011 -2029)
  • Employees in the Tobacco Product Manufacturing in Europe industry (2011 -2029)
  • Business in the Tobacco Product Manufacturing in Europe industry (2011 -2029)
  • Profit in the Tobacco Product Manufacturing in Europe industry (2011 -2029)
Analysis

What's driving current industry performance in the Tobacco Product Manufacturing in Europe industry?


Outlook

Analysis

What's driving the Tobacco Product Manufacturing in Europe industry outlook?


Volatility

Analysis

What influences volatility in the Tobacco Product Manufacturing in Europe industry?

Charts
  • Industry Volatility vs. Revenue Growth Matrix

Life Cycle

Analysis

What determines the industry life cycle stage in the Tobacco Product Manufacturing in Europe industry?

Charts
  • Industry Life Cycle Matrix

Products and Markets

Highlights

Trends
  • Largest Market
  • Product Innovation

Key Takeaways

Cigarette demand in Europe is falling. This dip is largely because folks are waking up to the health risks, facing tougher laws, and finding other ways, like vaping, to satisfy their nicotine fix.

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Products and Services

Charts
  • Products and Services Segmentation
Analysis

How are the Tobacco Product Manufacturing in Europe industry's products and services performing?

Analysis

What are innovations in the Tobacco Product Manufacturing in Europe industry's products and services?


Major Markets

Charts
  • Major Market Segmentation
Analysis

What influences demand in the Tobacco Product Manufacturing in Europe industry?


International Trade

Highlights

  • Largest Importer
  • Smallest Importer
  • Total Imports into Europe
  • Largest Exporter
  • Smallest Exporter
  • Total Exports into Europe
Heat maps
  • Industry Concentration of Imports by Country
  • Industry Concentration of Exports by Country
Data Tables

Value and annual change (%) included

  • Number of Imports and Exports by European Country (2024)

Geographic Breakdown

Business Locations

Heat maps
  • Share of Total Industry Revenue by Region (2024)
  • Share of Total Industry Enterprises by Region (2024)
  • Share of Total Industry Employment by Region (2024)
  • Share of Total Industry Wages by Region (2024)

Industry Geographic Breakdown

Data Tables

Values and annual change provided for 37 European countries:

  • Revenue (2024)
  • IVA (2024)
  • Enterprises (2024)
  • Employment (2024)
  • Exports (2024)
  • Imports (2024)

Competitive Forces

Highlights

Trends
  • Concentration
  • Competition
  • Barriers to Entry
  • Substitutes
  • Buyer Power
  • Supplier Power

Key Takeaways

Big tobacco dominates the market. Thanks to deep pockets that fuel aggressive advertising, extensive distribution networks, and continuous innovation. Their stronghold allows them to set trends and preferences, securing a massive competitive edge.

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Supply Chain

Charts

Buyer and supply industries

Companies

Market Share

Charts
  • Industry Market Share by Company (2019-2024)

Companies

Data Tables

Top 10 companies by market share:

  • Market share (2024)
  • Revenue (2024)
  • Profit (2024)
  • Profit Margin (2024)

Data Tables
  • Countries of operation for Philip Morris International Inc
  • Countries of operation for British American Tobacco plc
  • Countries of operation for Japan Tobacco Inc
  • Countries of operation for Imperial Brands plc
  • Countries of operation for Landewyck Group Sarl
  • Countries of operation for Alois Poschl GmbH & Co KG
  • Countries of operation for Scandinavian Tobacco Group A/S
  • Countries of operation for Karelia Tobacco Company Inc
  • Countries of operation for Joh Wilh von Eicken GmbH
  • Countries of operation for KT International SA

External Environment

Highlights

Trends
  • Regulation & Policy
  • Assistance

Key Takeaways

EU strict on tobacco regulation for public health. The EU and other European governments have implemented rigorous regulatory measures focused on tobacco. These policies aim to curb tobacco use, prioritise public health and reduce the burden of tobacco-related diseases.

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External Drivers

Analysis

What demographic and macroeconomic factors impact the Tobacco Product Manufacturing in Europe industry?

Financial Benchmarks

Highlights

Trends
  • Profit Margin
  • Average Wage
  • Largest Cost

Key Takeaways

Tobacco production costs are climbing. Despite stable leaf prices, factors like climate change and stricter farming regulations, coupled with higher freight and paper costs, are making it more expensive for Europe's tobacco manufacturers to produce their products.

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Cost Structure

Charts
  • Share of Economy vs. Investment Matrix
  • Industry Cost Structure Benchmarks:
    • Marketing
    • Depreciation
    • Profit
    • Purchases
    • Wages
    • Rent
    • Utilities
    • Other
Analysis

What trends impact cost in the Tobacco Product Manufacturing in Europe industry?


Key Ratios

Data tables
  • IVA/Revenue (2014-2029)
  • Imports/Demand (2014-2029)
  • Exports/Revenue (2014-2029)
  • Revenue per Employee (2014-2029)
  • Wages/Revenue (2014-2029)
  • Employees per Establishment (2014-2029)
  • Average Wage (2014-2029)

Country Benchmarks

European Leaders & Laggards

Data Tables

Top and boottom five countries listed for each:

  • Revenue Growth (2024)
  • Business Growth (2024)
  • Job Growth (2024)

European Country Performance

Data Tables

Rankings available for 37 countries. Statistics ranked include:

  • IVA/Revenue (2024)
  • Imports/Demand (2024)
  • Exports/Revenue (2024)
  • Revenue per Employee (2024)
  • Wages/Revenue (2024)
  • Employees per Establishment (2024)
  • Average Wage (2024)

Structural Comparison

Data Tables

Trends in 37 countries benchmarked against trends in Europe

  • Concentration
  • Competition
  • Barriers to Entry
  • Buyer Power
  • Supplier Power
  • Volatility
  • Capital Intensity
  • Innovation
  • Life Cycle

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2014-2029)
  • IVA (2014-2029)
  • Establishments (2014-2029)
  • Enterprises (2014-2029)
  • Employment (2014-2029)
  • Exports (2014-2029)
  • Imports (2014-2029)
  • Wages (2014-2029)

Methodology

Where does IBISWorld source its data?

IBISWorld is a world-leading provider of business information, with reports on 5,000+ industries in Australia, New Zealand, North America, Europe and China. Our expert industry analysts start with official, verified and publicly available sources of data to build an accurate picture of each industry.

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and IBISWorld's proprietary database of statistics and analysis to provide balanced, independent and accurate insights. 

IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools.

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