Cigarettes in Switzerland

PROSPECTS

Cigarette consumption stabilises

The decline in cigarette retail volume sales in 2017 was lower than the review period average. Smoking prevalence remained almost unchanged over the same period, reflecting the fact that a hard core group of smokers, consisting of nearly two million people or a quarter of the Swiss population, continue to maintain their tobacco habit, mainly cigarette smoking, in spite of strict legislation and numerous anti-smoking campaigns.

Illicit cigarettes not in strong demand

Cigarettes prices in Switzerland are much higher than in neighbouring countries but illicit cigarette volume sales in Switzerland fell in 2017. The main reason for this was that average earnings in Switzerland are also high and as a result smokers are able to afford the country’s high cigarette prices.

Internet retailing accounts for a low share of sales

Internet retailing continued to account for just a small share of cigarette volume sales in 2017. The main reason for this is that Swiss consumers continue to prefer to buy cigarettes from traditional retailers such as discounters, supermarkets and kiosks.

COMPETITIVE LANDSCAPE

Competitive environment in cigarettes remains concentrated

Philip Morris, British American Tobacco and Japan Tobacco International together continued to lead cigarettes in 2017. Cigarette smokers are very loyal and emotionally attached to the brands they smoke, which often tend to be the leading brands of these three multinationals.

Category witnesses the launch of the first hemp cigarette in Switzerland

Under the Heimat brand, Koch & Gsell launched Switzerland’s first legal cigarette containing 4g of organic hemp in July 2017, which is mixed with tobacco grown in Switzerland. The product is being sold through leading retailers such as Coop, Denner and k-kiosk and so is enjoying national distribution.

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