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COVID-19 has not had a significant impact on Canada’s tobacco market in 2020; the overall current value growth will be similar to what it was in 2019. In the short term, pandemic-related social distancing and lockdowns reduced demand for and access to cigars, which normally are mostly enjoyed in social situations and which are normally purchased in tobacco specialist stores, which have been closed.
The 30-day restriction on all non-essential travel across the Canada-US border was implemented on 21 March, before being extended for a further 30 days to 21 May. While international flights are still operating, air travel into the country by anyone other than Canadian residents, the immediate family members of Canadian residents, or US citizens has been prohibited since 18 March, with these restrictions further tightened on 21 March to bar any US citizen not travelling on essential business.
Despite intensive public lobbying from industry players, plain packaging regulations became effective in Canada on 9 November 2019, less than two years after passage of Bill S-5, which amended the country’s Tobacco Act (now called the Tobacco and Vaping Products Act) and authorised Health Canada to introduce and adopt its series of regulations that are now categorised as The Tobacco Products Regulations (Plain and Standardized Appearance). The bill also modified regulations on e-vapour products and legalised e-cigarettes containing nicotine.
In 2019, Imperial Tobacco Canada, Rothmans Benson & Hedges and JTI MacDonald maintained their respective leading positions in Canada’s tobacco market. Rothmans Benson & Hedges strengthened its dominance in the fast-growing tobacco heating devices and heated tobacco categories in 2019.
Over the forecast period, volume sales in all tobacco categories except for the “reduced risk” categories (heated tobacco products and e-vaping systems) are set to continue declining. Further decline will be driven by the continuous reduction in smoking prevalence for health and social reasons and by further increases in product costs due to tax increases – coupled with the negative impact of plain packaging on sales and competition.
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Overview
Discover the latest market trends and uncover sources of future market growth for the Tobacco industry in Canada with research from Euromonitor's team of in-country analysts.
Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.
If you're in the Tobacco industry in Canada, our research will save you time and money while empowering you to make informed, profitable decisions.
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This industry report originates from Passport, our Tobacco market research database.
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.