Tobacco Sales on the Rise Again in Germany 🇩🇪
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In an unfolding twist, the Federal Association of the Tobacco Industry and Novel Products (BVTE) anticipates a significant surge in cigarette sales for 2024, beating 2023's record-breaking 64 billion pieces. But before you light up, it's essential to understand the factors at play here.
As of November, the latest figures reveal that the numbers aren't pointing towards a rebound in smoking rates. Instead, the increase in orders for tax stamps for production could be the culprit. As a new tobacco tax increase is set to kick in on January 1, 2025, manufacturers are stocking up on 2024 tax stamps ahead of schedule.
Don't jump to conclusions, though. Jan Mücke, the CEO of BVTE, emphasizes that the surge in sales isn't indicative of a rise in the smoking rate in Germany. In fact, tobacco consumption has been on a steady decline for years. Furthermore, a portion of the tobacco products consumed in the country is exported abroad, with 1 billion German cigarettes finding their way across the border last year.
Neighboring France has been a significant customer for years, where consumers prefer to buy cheaper cigarettes in Germany. Intriguingly, the trend has been steadily increasing, with the Dutch purchasing over 290 million more cigarettes in Germany last year. Given the steep price of cigarettes in the Netherlands, it's no surprise that consumers are crossing borders for a bargain.
The border isn't just a one-way street for German consumers; a whopping 19.8% of cigarette packs remain untaxed in Germany. Most of these cigarettes hail from Poland, who plans to impose massive tax increases in 2025. As a response to these hikes, some German consumers are switching to finer tobacco or less harmful alternatives like tobacco heaters or e-cigarettes. This year, German consumers also face increased excise duty for e-cigarettes, with 1.156 million liters being taxed from January to November.
When it comes to e-cigarettes, the illegal market presents a concern. Unauthorized disposable e-cigarettes with elevated nicotine content have been showing up on the German market, tax-free, through dark channels. As regulators consider stricter restrictions, like a ban on menthol or fruit flavors for liquids, the illegal influx could escalate rapidly—similar to the situation in Estonia, where e-cigarette liquid sales are limited to tobacco and menthol flavors. As a result, the smoking rate of tobacco products in Estonia has risen significantly since 2021.
Keeping tobacco consumption in check, especially in a rapidly evolving market, is a delicate dance between health concerns, consumer desires, and regulatory measures. Striking the right balance is crucial for reducing smoking rates effectively. Countries that avoid overregulation of potentially less harmful products, like Sweden, have seen impressive results, with only 4.6% of their population reporting daily smoking.
For more information, contact Jan Mücke, the Chief Executive Officer of the BVTE, at [email protected]. Visit www.bvte.de for additional resources on the tobacco industry and novel products.
Press Contact: Land Pflichtenbezogene Unterhaltssachen BetreuungPhone: +49 30 88 66 36 - 123Email: [email protected]Website: www.bvte.de
Sources: Bundesverband der Tabakwirtschaft und neuartiger Erzeugnisse (BVTE), news aktuell
- The increase in tobacco sales in Germany for 2024 is not directly linked to a rise in smoking rates, but could be due to manufacturers stockpiling 2024 tax stamps ahead of schedule due to an upcoming tobacco tax increase in 2025.
- Despite the surge in tobacco sales, the consumption of tobacco in Germany has been on a steady decline for years, and a portion of the tobacco products consumed in the country is exported abroad.
- The health-and-wellness, policy-and-legislation, general-news, and politics landscape is complex, with regulators balancing health concerns, consumer desires, and regulatory measures to reduce smoking rates while ensuring a competitive marketplace for alternative tobacco products and novel items.
