2025 Developments
Nicotine in Canada remained under pressure in 2025, with retail volume declining across all major categories as tightening regulation and falling smoking prevalence continued to reshape demand. Cigarettes and cigars, cigarillos and smoking tobacco recorded the steepest declines, while smokeless tobacco, e-vapour products and heated tobacco proved more resilient despite also contracting. Higher unit prices supported value sales, but were insufficient to offset weakening volume demand. Tightening regulation remained the dominant market force, affecting both combustible and alternative nicotine products through health warnings, excise measures, vaping duties and increasing compliance requirements. At the same time, declining smoking prevalence continued to shrink the combustible consumer base and reinforce long-term demand migration towards alternative nicotine formats. However, the growth potential of legal e-vapour products remained constrained by flavour restrictions, nicotine caps and the continued presence of non-compliant products in the market. The market remained moderately concentrated, with Imperial Tobacco Canada Ltd and Rothmans Benson & Hedges Inc retaining leadership, while Pacific Smoke International Inc gained significant share through its strong position in legal e-vapour. Forecourt retailers and convenience stores continued to lead distribution due to the importance of cigarettes, although other non-grocery retailers and retail e-commerce played an increasingly important role in alternative nicotine formats. Looking ahead, nicotine volumes are forecast to decline further as combustible consumption contracts, while regulatory developments, enforcement effectiveness, value-seeking behaviour and demand for alternative formats increasingly shape competitive performance.
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Overview:
Understand the latest market trends and future growth opportunities for the Nicotine industry in Canada 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.
Data and analysis in this report provides further detailed coverage dedicated to the following key categories, where applicable:
- Cigarettes
- Cigars, Cigarillos and Smoking Tobacco
- Smokeless Tobacco, E-Vapour Products and Heated Tobacco
If you're in the Nicotine industry in Canada, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
The Nicotine in Canada 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 Nicotine in Canada?
- Which are the leading brands in Nicotine in Canada?
- How are products distributed in Nicotine in Canada?
- Which category is the most heavily taxed in Canada?
- How is the operating environment for Nicotine changing?
- What are the current legislative restrictions applicable to the sale of Nicotine products in Canada?
- How has COVID-19 impacted demand?
- How have national lockdown and enforced home seclusion following COVID-19 impacted sales?
- Where is future growth expected to be most dynamic?
Nicotine in Canada
2025 Developments
Key Data Insights
Broad-Based Volume Decline Reflects Pressure across All Nicotine Categories
Tightening Regulation Increases Pressure across Combustible and Alternative Nicotine Products
Declining Smoking Prevalence Continues to Reshape Nicotine Demand
Alternative Formats Are Set to Underpin Nicotine Demand as Cigarette Volumes Continue to Decline
Regulation and Enforcement Are Projected to Determine the Size of the Legal Market Opportunity
Value and Convenience Are Anticipated to Shape Future Competitive Advantage
Pacific Smoke International Gains Ground as E-Vapour Reshapes Competition
Forecourt Retailers and Convenience Stores Remain Central to Nicotine Distribution
E-Commerce Remains Limited Despite Growth in Alternative Nicotine Formats
Tightening Regulation and Declining Smoking Prevalence Are Reshaping Innovation Priorities
Smoke-Free Retail Initiatives and High-Capacity E-Vapour Formats Illustrate Recent Innovation
Innovation Is Increasing the Importance of Compliance and Portfolio Adaptability
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
Reduced Harm
Vapour Products
Production/Imports/Exports
Cigarettes in Canada
Key Data Insights
Cigarettes Summary
Declining Smoking Prevalence and Higher Taxes Accelerate Category Decline
Declining Smoking Prevalence Concentrates Demand among Older Smokers
Regulatory Pressure and Illicit Trade Continue to Challenge the Legal Market
Declining Smoking Prevalence Set to Sustain Long-Term Category Contraction
Rising Taxes Expected to Intensify Affordability Pressures and Downtrading
Regulation and Illicit Trade Forecast to Shape the Future of the Legal Market
Leading Manufacturers Defend Share through Portfolio Breadth and Pricing Discipline
Forecourt Retailers and Convenience Stores Remain Central to Cigarette Distribution
Regulatory Restrictions Limit the Role of E-Commerce
Declining Smoking Prevalence and Tighter Regulation Redirect Innovation Away From Product Development
Retail Switching Initiatives and Portfolio Management Exemplify Current Innovation
Recent Developments Strengthen Incumbent Positions and Raise Barriers to Competition
Taxation Rates
Average Cigarette Pack Price Breakdown
Cigars, Cigarillos and Smoking Tobacco in Canada
Key Data Insights
Cigars, Cigarillos and Smoking Tobacco Summary
Combustible Tobacco Remains in Structural Decline Despite Stable Economic Conditions
Declining Smoking Prevalence Accelerates Category Contraction
Tightening Regulation Increases Compliance Pressure across the Category
Combustible Tobacco Decline Expected to Continue as the Consumer Base Contracts
Tightening Regulation Set to Further Limit Opportunities for Differentiation
Value Expected to Outperform Volume as Pricing Remains the Key Defence
Scandinavian Tobacco Group Maintains Leadership in a Stable Competitive Environment
Specialist Retail Remains Central as Combustible Tobacco Demand Contracts
Smokeless Tobacco, E-Vapour Products and Heated Tobacco in Canada
Key Data Insights
Smokeless Tobacco, E-Vapour Products and Heated Tobacco Summary
Heated Tobacco Growth Partially Offsets Continued Weakness in E-Vapour
Value-Seeking Behaviour Reinforces Demand for High-Capacity Formats and Non-Compliant Products
Regulatory Pressure Increasingly Shapes Legal Market Development
Growth in Heated Tobacco and High-Capacity E-Vapour Formats Is Set to Outweigh Broader Category Decline
Format Optimisation Is Set to Become the Key Driver of Competitive Success
Regulation and Enforcement Are Expected to Remain the Main Determinants of Legal Market Growth
Pacific Smoke International and Valor Strengthen Leadership through Value-Focused Portfolios
Scale and Product Innovation Raise Barriers to Competition
Specialist Retail Remains Central as E-Vapour Distribution Expands across Complementary Channels
Omnichannel Specialist Operators Strengthen Their Competitive Position
Country Reports Disclaimer
The following categories and subcategories are included:
Nicotine
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- Fine Cut Cigarettes
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- Cigarettes (Illicit+Legal)
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- Cigars
- Cigarillos
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- Pipe Tobacco
- Fine Cut Tobacco
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- Chewing Tobacco
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- Loose US-Style Moist Snuff
- Portion US-Style Moist Snuff
- Swedish-Style Snus
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- Closed System Single Use
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- Closed System Rechargeable (including starter kits)
- Closed System Cartridges
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- Open Vaping Systems Charging and Vapourising Devices
- E-liquids
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- Tobacco Heating Devices
- Heated Tobacco
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- Nicotine Pouches
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- Closed System Single Use (Illicit+Legal)
- Closed System Cartridges (Illicit+Legal)
- E-Liquids (Illicit+Legal)
Nicotine
Passport Nicotine covers the seven major nicotine categories: Cigarettes, Cigars & Cigarillos, Smoking tobacco (made up of Pipe tobacco and RYO tobacco), Smokeless Tobacco (snuff and chewing tobacco), E-Vapour Products (closed and open); Heated Tobacco; and Tobacco Free Oral Nicotine. Smoking paraphernalia such as pipes, rolling papers, lighters or matches, etc., are not included, nor are nicotine replacement therapy (NRT) products, which are part of Euromonitor's Passport Consumer Healthcare database.
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 Nicotine research and analysis database.
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