United Kingdom Tobacco Market Report and Forecast 2025-2034

United Kingdom Tobacco Market Outlook

• In 2022, the United Kingdom recorded 6.4 million individuals over the age of 18 as smokers.

• In 2023, the highest ever proportion of the population in Great Britain, amounting to 4.7 million adults, used e-cigarettes, which accounted for 9.1% of the population.

• In the United Kingdom, a higher percentage of men were found to be smokers compared to women in 2022, as 14.6% of men and 11.2% of women reported being current smokers.

United Kingdom Tobacco Market Growth

The median household disposable income in the United Kingdom reached £32,300 for the financial year ending 2022. Over the period between FY 2020 and FY 2022, the median household disposable income experienced an average annual growth rate of 0.7%. With the increase in disposable income, consumers have more financial resources available to spend on non-essential items like tobacco products. This increase in disposable income enables consumers to transition from economy or low-cost tobacco options to premium brands that are often associated with higher quality or elevated status. Moreover, tobacco companies frequently launch new products and variations, including flavoured tobacco and advanced nicotine delivery systems, to appeal to consumers with higher disposable income. Higher earnings can result in a propensity to experiment and a readiness to try out various types of products.

Luxury cigars are frequently perceived as symbols of status and opulence. Premium cigars, particularly those produced by well-known brands, are linked with elegance, achievement, and special occasions. In the UK, there has been a notable rise in the consumption of non-cigarette tobacco products. Recent data indicates that the usage of pipes, shisha, and cigars has increased five times over the span of a decade, with 3% of 18-year-olds engaging in these forms compared to 1.1% of individuals aged 65 and above.

United Kingdom Tobacco Industry Segmentation

United Kingdom Tobacco Market Share

Based on product, the market is segmented into cigarettes, cigars, cigarillos, and smokeless tobacco, among others. The cigar segment is projected to grow at a CAGR of 1.7% during the forecast period of 2025-2034.  Cigars serve multiple purposes and hold cultural importance beyond just being smoked. They are commonly utilised to commemorate significant events like weddings, births, and career advancements, among others.

Leading Companies in the United Kingdom Tobacco Market

The market players are focusing on the manufacturing of non-smoking tobacco to gain a competitive edge in the market.

• JT International SA

• Philip Morris International Inc.

• British American Tobacco p.l.c.

• Imperial Brands PLC

• Others