Competitive Landscape
British American Tobacco Retains Leadership as Value-Tier Brands Gain Importance
Cigarettes in New Zealand remained highly concentrated in 2025, with British American Tobacco (New Zealand) Ltd accounting for 52% of retail volume sales, followed by Imperial Tobacco New Zealand Ltd at 22% and Philip Morris (New Zealand) Ltd at 20%. This concentration persisted between 2020 and 2025, with only modest changes among the leading players.
Distribution Scale and Value Positioning Remain Critical Competitive Advantages
The competitive structure is expected to remain relatively stable in the near term, with competition focused on defending share within a contracting legal market. For manufacturers, the primary opportunities lie in strengthening value-tier offerings, maintaining broad retail distribution and adapting to changing consumer behaviour driven by excise increases and illicit trade.
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Overview:
Understand the latest market trends and future growth opportunities for the Cigarettes industry in New Zealand with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
If you're in the Cigarettes industry in New Zealand, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
The Cigarettes in New Zealand report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volume and value sizes, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent research methodology, conducted in-country
This report answers:
- What is the market size of Cigarettes in New Zealand?
- Which are the leading brands in Cigarettes in New Zealand?
- How are products distributed in Cigarettes in New Zealand?
- Which category is the most heavily taxed in New Zealand?
- How is the operating environment for Cigarettes changing?
- What are the current legislative restrictions applicable to the sale of Cigarettes products in New Zealand?
- Where is future growth expected to be most dynamic?
Cigarettes in New Zealand - Category analysis
Key Data Insights
Cigarettes Summary
Cigarette Volumes Decline as Excise Increases and Shrinking Smoking Prevalence Intensify Pressure on the Legal Market
Declining Smoking Prevalence Continues to Shrink the Legal Cigarette Consumer Base
Fiscal Containment Accelerates Downtrading and Increases Pressure From Illicit Tobacco
Fiscal Containment Is Projected to Sustain Cigarette Volume Decline Despite Resilient Value Growth
The Illicit Tobacco Market Is Projected to Remain the Greatest Threat to Legal Cigarette Revenue
Dual-Use Nicotine Habits Are Projected to Redefine the Remaining Cigarette Consumer Base
British American Tobacco Retains Leadership as Value-Tier Brands Gain Importance
Distribution Scale and Value Positioning Remain Critical Competitive Advantages
Convenience Retailers Remain Central as Illicit Trade Captures a Growing Share of Consumption
E-Commerce Remains a Minor Sales Channel under Regulatory Restrictions
Taxation Rates
Average Cigarette Pack Price Breakdown
Nicotine in New Zealand - Industry Overview
2025 Developments
Key Data Insights
Modest Nicotine Growth Masks Regulatory-Driven Format Migration and Rising Illicit Trade
Vaping Restrictions and Compliance Requirements Redefine Competition
Cross-Format Consumption Becomes Embedded in Everyday Nicotine Use
Specialist Retail Is Expected to Strengthen as Nicotine Volume Stabilises
Heated Tobacco’S Tax Advantage Is Expected to Accelerate Format Migration
Nicotine Pouch Delays Are Expected to Create a Compliance-Led Growth Opportunity
Regulatory Disruption Reshapes Competition as Established Players Defend Their Positions
Portfolio Diversification and Compliance Agility Strengthen Competitive Advantage
Specialist Vape Retailers Adapt to Visibility Restrictions through Swas Models
E-Commerce Evolves into a Utility Channel for Established Vapers
Legislation
Legislative Overview
Minimum Legal Smoking Age
Smoking Prevalence
Tar Levels
Health Warnings
Plain Packaging
Advertising and Sponsorship
Point-Of-Sale Display Bans
Smoking in Public Places
Low Ignition Propensity (Lip) Cigarette Regulation
Flavoured Tobacco Product Ban
Vapour Products
Production/Imports/Exports
Country Reports Disclaimer
The following categories and subcategories are included:
Cigarettes
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- Fine Cut Cigarettes
Cigarettes
RETAIL SALES OF DUTY PAID CIGARETTES The definition of cigarettes for the purposes of this study is duty-paid, machine manufactured white-stick products. This does not exclude brands of cigarettes that do not use white paper but it is designed to exclude the volume of non-machine manufactured products such as bidis/beedis (India) and papirosy (Russia), and other smoking products made with tobacco but that either do not resemble cigarettes as recognised in the US or Europe, or those that are not machine manufactured. The exclusion of these products is intended to give a more accurate picture of the "true" market for cigarettes and cigars which has been distorted in official statistics and published reports because of the inclusion of hybrid products. NB Please note that due to its central importance and integration into the industry mainstream, Indonesia’s market data does include hand-rolled kreteks DUTY-FREE sales are excluded from retail sales, as are herbal cigarettes. ILLICIT TRADE CIGARETTES Not included in retail sales, but split out separately in volume terms only. Defined as non-duty paid cigarettes (includes smuggled & counterfeit/fake products combined). Legitimate cross-border sales are considered duty-paid. Sales arising from a foreign national purchasing cheaper cigarettes in bulk in a neighbouring country for personal use and exported back are attributed to the country where the purchase is made (e.g. bulk cigarette sales by British nationals in France are attributed to France).
See all of our definitionsWhy buy this report?
- Gain competitive intelligence about market leaders
- Track key industry trends, opportunities and threats
- Inform your marketing, brand, strategy and market development, sales and supply functions
This report originates from Passport, our Cigarettes research and analysis database.
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