Cigarettes in Switzerland

PRE-COVID-19 PERFORMANCE

Health concerns and rising prices result in lower consumption in 2019

Increasing health concerns and rising prices by manufacturers rather than tax increases resulted in strong declines in the consumption of cigarettes in 2019. The switch to fine cut tobacco, apparent in many Western European countries, was even more marked over the review period as smokers moved to popular brands such as Fleur de Pays No 1 or Winston, both from Japan Tobacco International.

Price rises influence consumer behaviour, whilst new launches drive interest in flavoured cigarettes

The average unit prices of cigarettes were increased by manufacturers in 2019 in face of falling volume sales and rising costs. This had a rapid impact on consumer behaviour, not only encouraging more smokers to switch to fine cut tobacco, but also accelerating the switch from premium to mid-price and economy brands.

A concentrated competitive landscape

The competitive landscape remained highly concentred in cigarettes in 2019, with Philip Morris, British American Tobacco Switzerland and Japan Tobacco International accounting for the lion’s share of volume sales. Philip Morris had an instant impact with the launch of its HEETS heated tobacco brand in 2015 and the brand continued to record strong growth over the rest of the review period and into 2019.

2020 AND BEYOND

COVID-19 impact

In 2020, sales of cigarettes are now expected to grow by 1% in constant 2019 value terms in light of the impact of COVID-19. This compares to a 1% decline in sales forecast in our 2019 edition of tobacco.

Recovery and opportunities

The declining consumption of cigarettes witnessed over the review period is set to continue over the forecast period, with accelerating drops towards the end of the forecast period. This is, however, likely to be more influenced by the ongoing trend of smokers quitting cigarettes rather than any major direct impact from the COVID-19 epidemic.

Files are delivered directly into your account within a few minutes of purchase.