2025 Developments
Nicotine in Israel demonstrates unusual resilience in 2025, registering modest volume growth of 1% to 8,674 million sticks. This stability is anchored by entrenched consumption habits and a regulatory environment that prioritises compliance over innovation, resulting in inelastic consumer spending, evidenced by consumer tobacco expenditure reaching ILS17,474 million, despite inflation exceeding 3%. Cigarettes continue to dominate, with volumes rising by 2% to 7,942 million sticks, as alternative products face declining volumes due to stricter regulation, excise tax increases, and new packaging requirements such as graphic warnings. Heated tobacco is the exception among alternatives, showing double-digit growth, but this is largely driven by dual use rather than substitution, reinforcing the entrenched role of cigarettes. Competitive dynamics are highly concentrated, with Philip Morris and Globrands jointly accounting for the majority of volume, while smaller players struggle to maintain relevance. For companies aiming to succeed, strategies focused on compliance, distribution strength, and brand loyalty are critical, as opportunities for differentiation and innovation remain limited under current policy constraints.
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Overview:
Understand the latest market trends and future growth opportunities for the Nicotine industry in Israel 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 Israel, 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 Israel 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 Israel?
- Which are the leading brands in Nicotine in Israel?
- How are products distributed in Nicotine in Israel?
- Which category is the most heavily taxed in Israel?
- How is the operating environment for Nicotine changing?
- What are the current legislative restrictions applicable to the sale of Nicotine products in Israel?
- 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 Israel
2025 Developments
Key Data Insights
Rregulations Sustain Cigarette Dominance While Curbing Innovation
Graphic Warnings and Tax Hikes Reduce Product Appeal and Limit Switching
Dual Use Lifts Cigarette Sales and Slows Decline Elsewhere
Smokers Prioritise Cigarettes Despite Rising Taxes and Restrictions
Dual Users Drive Heated Tobacco Growth as Switching Remains Limited
Philip Morris Ltd Consolidates Dominance as Smaller Players Lose Ground
Small Local Grocers Sustain Cigarette Sales through Proximity and Frequency
Food and Tobacco Specialists Enable Gradual E-Commerce Gains for Heated Tobacco
Legislation
Legislative Overview
Minimum Legal Smoking Age
Smoking Prevalence
Tar Levels
Health Warnings
Plain Packaging
Advertising and Sponsorship
Point-Of-Sale Display Bans
Flavoured Tobacco Product Ban
Vapour Products
Production/Imports/Exports
Cigarettes in Israel
Key Data Insights
Cigarettes Summary
Tightening Regulations Prompt Incumbent Brands to Defend Volume Resilience
Sustained Demand Drives Growth Despite Increased Prices
Price-Focused Brands Adapt to Regulations
Regulation and Taxation to Drive Value Growth as Volume Faces Sustained Pressure
Top Players Sustain Lead
Small Local Grocers Capture Routine Smokers with Proximity and Convenience
External Behavioural Pressures and Entrenched Habits Define the Innovation Environment
Portfolio Management and Compliance Execution Replace Product Launches as the Core Commercial Activity
Incumbency Advantage Deepens as Barriers Constrain New Entrants and Smaller Players
Taxation Rates
Average Cigarette Pack Price Breakdown
Cigars, Cigarillos and Smoking Tobacco in Israel
Key Data Insights
Cigars, Cigarillos and Smoking Tobacco Summary
Established Brands Maintain Positions as Innovation Stalls and Pricing Drives Decisions
Smoking Tobacco Drives Decline as Demand Shifts to Cheaper Formats
Packaging Restrictions Erode Premium Appeal as Price Sensitivity Rises
Price-Sensitive Smokers Switch to Affordable Cigarillos as Incomes Stabilise
Roll-Your-Own Users Exit as Alternatives Gain Appeal and Value
Dubek Ltd and Globrands Ltd Defend Leadership as Regulation Limits Shifts
Small Local Grocers Capture Habitual Purchases as Stability Prevails
Smokeless Tobacco, E-Vapour Products and Heated Tobacco in Israel
Key Data Insights
Smokeless Tobacco, E-Vapour Products and Heated Tobacco Summary
Regulation Curbs Innovation and Visibility
Heated Tobacco Outpaces E-Vapour as Smokers Seek Alternatives
Regulatory Tightening Shifts Focus From Innovation to Retention
Heated Tobacco Gains Momentum as Dual Use Persists
Regulation Strengthens Incumbents and Fragments the Competitive Landscape
Consumer Spending Remains High Despite Shrinking Legal Volumes
Philip Morris Ltd (Israel) Consolidates Lead as Regulatory Barriers Persist
Specialist Retailers Maintain Lead as Heated Tobacco Demands Guidance
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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