The Europe tobacco market size reached around USD 178.97 Billion in 2025. The market is projected to grow at a CAGR of 1.05% between 2026 and 2035 to reach nearly USD 198.68 Billion by 2035. The market is being driven by the increasing demand for flavoured tobacco, the rising focus on sustainability, and technological advancements.
Base Year
Historical Period
Forecast Period
Reportedly, 19.7 per cent of the EU population smokes daily. This is offering tobacco companies the opportunity to offer reduced-risk products (RRPs) such as heated tobacco, vaping products, and nicotine pouches. Moreover, increasing health consciousness in the region is prompting smokers to seek cigarette-free alternatives such as smokeless tobacco products and nicotine pouches that are less harmful than traditional cigarettes.
Countries such as Bulgaria and Turkey boast the highest rate of tobacco consumption in Europe due to the deeply ingrained cultural habits of smoking. While Bulgaria has the highest rate of tobacco consumption in Europe, at 28.7%, Turkey has the second highest tobacco consumption rate at 27.3%. These high smoking rates provide a robust base for tobacco companies to expand their presence and diversify their product portfolios in the countries.
Key players in the Europe tobacco market are introducing customised formats and new and user-centric products to capitalise on the evolving customer preference for portability, convenience, and discreet use. Moreover, growing environmental consciousness is encouraging tobacco companies to develop customisable formats to reduce waste and innovate their packaging to respond to the growing customer demand for eco-friendly products.
Compound Annual Growth Rate
1.05%
Value in USD Billion
2026-2035
*this image is indicative*
|
Europe Tobacco Market Summary |
Description |
Value |
|
Base Year |
USD Billion |
2025 |
|
Historical period |
USD Billion |
2019-2025 |
|
Forecast Period |
USD Billion |
2026-2035 |
|
Market Size 2025 |
USD Billion |
178.97 |
|
Market Size 2035 |
USD Billion |
198.68 |
|
CAGR 2019-2025 |
Percentage |
XX% |
|
CAGR 2026-2035 |
Percentage |
1.05% |
|
CAGR 2026-2035 - Market by Country |
Germany |
1.20% |
|
CAGR 2026-2035 - Market by Country |
Italy |
0.65% |
|
CAGR 2026-2035 - Market by Type |
Cigarillos |
1.19% |
|
CAGR 2026-2035 - Market by Distribution Channel |
Online |
3.15% |
|
Market Share by Country 2025 |
Germany |
23.3% |
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.
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.
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.
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.
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.
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.
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.
The EMR’s report titled “Europe Tobacco Market Report and Forecast 2026-2035” offers a detailed analysis of the market based on the following segments:
Breakup by Product
Breakup by Distribution Channel
Breakup by Country
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 2026-2035 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 2026 and 2035 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 2026-2035 - Market by |
Country |
|
Germany |
1.2% |
|
Italy |
0.6% |
|
United Kingdom |
XX% |
|
France |
XX% |
|
Others |
XX% |
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, 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., 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, 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, 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.
*Please note that this is only a partial list; the complete list of key players is available in the full report. Additionally, the list of key players can be customized to better suit your needs.*
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.
Upto 15% Off
USD
$2499 $2249
$3999 $3599
$4999 $4249
$5999 $5099
*While we strive to always give you current and accurate information, the numbers depicted on the website are indicative and may differ from the actual numbers in the main report. At Expert Market Research, we aim to bring you the latest insights and trends in the market. Using our analyses and forecasts, stakeholders can understand the market dynamics, navigate challenges, and capitalize on opportunities to make data-driven strategic decisions.*
Get in touch with us for a customized solution tailored to your unique requirements and save upto 35%!
In 2025, the market attained a value of nearly USD 178.97 Billion.
The market is assessed to grow at a CAGR of 1.05% between 2026 and 2035.
The market is estimated to witness a healthy growth in the forecast period of 2026-2035 to reach about USD 198.68 Billion by 2035.
The major drivers of the market are robust growth of the e-commerce sector and the increasing inclination towards smoke-free tobacco products.
As per the EMR report, the different distribution channels in the market are supermarkets and hypermarkets, speciality stores, and online, among others.
The major countries considered in the market are Germany, the United Kingdom, France, and Italy, among others.
The major players in the market are JT International SA, Philip Morris International Inc., British American Tobacco Plc, Imperial Brands Plc, Scandinavian Tobacco Group A/S, Landewyck Tobacco S.A, Karelia Tobacco Company Inc., and Continental Tobacco Corp., among others.
Explore our key highlights of the report and gain a concise overview of key findings, trends, and actionable insights that will empower your strategic decisions.
| REPORT FEATURES | DETAILS |
| Base Year | 2025 |
| Historical Period | 2019-2025 |
| Forecast Period | 2026-2035 |
| Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
|
| Breakup by Product |
|
| Breakup by Distribution Channel |
|
| Breakup by Region |
|
| Market Dynamics |
|
| Competitive Landscape |
|
| Companies Covered |
|
Datasheet
One User
USD 2,499
USD 2,249
tax inclusive*
Single User License
One User
USD 3,999
USD 3,599
tax inclusive*
Five User License
Five User
USD 4,999
USD 4,249
tax inclusive*
Corporate License
Unlimited Users
USD 5,999
USD 5,099
tax inclusive*
*Please note that the prices mentioned below are starting prices for each bundle type. Kindly contact our team for further details.*
Flash Bundle
Small Business Bundle
Growth Bundle
Enterprise Bundle
*Please note that the prices mentioned below are starting prices for each bundle type. Kindly contact our team for further details.*
Flash Bundle
Number of Reports: 3
20%
tax inclusive*
Small Business Bundle
Number of Reports: 5
25%
tax inclusive*
Growth Bundle
Number of Reports: 8
30%
tax inclusive*
Enterprise Bundle
Number of Reports: 10
35%
tax inclusive*
How To Order
Select License Type
Choose the right license for your needs and access rights.
Click on ‘Buy Now’
Add the report to your cart with one click and proceed to register.
Select Mode of Payment
Choose a payment option for a secure checkout. You will be redirected accordingly.
Gain insights to stay ahead and seize opportunities.
Get insights & trends for a competitive edge.
Track prices with detailed trend reports.
Analyse trade data for supply chain insights.
Leverage cost reports for smart savings
Enhance supply chain with partnerships.
Connect For More Information
Our expert team of analysts will offer full support and resolve any queries regarding the report, before and after the purchase.
Our expert team of analysts will offer full support and resolve any queries regarding the report, before and after the purchase.
We employ meticulous research methods, blending advanced analytics and expert insights to deliver accurate, actionable industry intelligence, staying ahead of competitors.
Our skilled analysts offer unparalleled competitive advantage with detailed insights on current and emerging markets, ensuring your strategic edge.
We offer an in-depth yet simplified presentation of industry insights and analysis to meet your specific requirements effectively.
Share