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Tobacco in Canada
July 2022
Tobacco in 2021: The big picture
In 2021, regulations concerning the manufacture, sale and distribution of traditional tobacco products became stricter. The plain packaging regulation that came into effect in 2019 moved into a new phase in 2021.
2021 key trends
During 2021, even though there were periodically surges in the number of COVID-19 cases, public health measures were gradually eased across regions in Canada. As a result, Canadians became more mobile and spent less time at home, leading to a resumption of illicit trade.
Competitive landscape
Major players in tobacco such as Imperial Tobacco Canada Ltd (part of British American Tobacco), Rothmans Benson & Hedges Inc (part of Philip Morris International) and JTI MacDonald Corp have been investing in alternatives to traditional tobacco products, such as e-vapour products, heated tobacco and nicotine pouches, as sales of traditional tobacco products fall and regulatory pressure increases. In 2021, Imperial Tobacco Canada launched Vuse, a closed system vape, while Rothmans Benson & Hedges introduced iQOS VEEV.
Retailing developments
Before the COVID-19 pandemic, there was already a rapid increase in the adoption of e-commerce and the sales of e-vapour products and heated tobacco through this channel. The pandemic accelerated the shift toward e-commerce as manufacturers, distributors and retailers sped up the development of their omnichannel presence.
What next for tobacco?
The pandemic heightened awareness of health and wellness, particularly around respiratory illnesses and disease, in Canada. This, alongside the tightening of the legal framework for tobacco control and rising prices, is expected to lead to further drops in smoking prevalence, including a return to the steady drop in the number of adult male smokers, and total adult smokers, over the forecast period.
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Overview:
Understand the latest market trends and future growth opportunities for the Tobacco 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 Tobacco 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 Tobacco 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 Tobacco in Canada?
Which are the leading brands in Tobacco in Canada?
How are products distributed in Tobacco in Canada?
Which category is the most heavily taxed in Canada?
How is the operating environment for Tobacco changing?
What are the current legislative restrictions applicable to the sale of Tobacco 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?
Tobacco in Canada
EXECUTIVE SUMMARY
Tobacco in 2021: The big picture
2021 key trends
Competitive landscape
Retailing developments
What next for tobacco?
OPERATING ENVIRONMENT
Legislation
Legislative overviewSummary 1 Legislation Summary at a Glance
Minimum legal smoking age
Smoking prevalence
Plain packaging
Point-of-sale display bans
Smoking in public places
Flavoured tobacco product ban
Vapour products
PRODUCTION/IMPORTS/EXPORTS
MARKET INDICATORS
Table 1 Number of Adult Smokers by Gender 2016-2021
MARKET DATA
Table 2 Sales of Tobacco by Category: Volume 2016-2021Table 3 Sales of Tobacco by Category: Value 2016-2021Table 4 Sales of Tobacco by Category: % Volume Growth 2016-2021Table 5 Sales of Tobacco by Category: % Value Growth 2016-2021Table 6 Forecast Sales of Tobacco by Category: Volume 2021-2026Table 7 Forecast Sales of Tobacco by Category: Value 2021-2026Table 8 Forecast Sales of Tobacco by Category: % Volume Growth 2021-2026Table 9 Forecast Sales of Tobacco by Category: % Value Growth 2021-2026
DISCLAIMER
SOURCES
Summary 2 Research Sources
Cigarettes in Canada
KEY DATA FINDINGS
2021 DEVELOPMENTS
Plain packaging and price hikes reduce demand for cigarettes
Lifting of public health measures adds to the pressure on cigarettes sales
Growing popularity of e-vapour products contributes to decline in demand for cigarettes
PROSPECTS AND OPPORTUNITIES
Health and cost factors and the return to pre-pandemic lifestyles set to reduce demand for cigarettes
Legal framework for tobacco control set to further evolve
Rising interest in e-vapour products and cannabis presents challenges and opportunities for cigarettes
TAXATION AND PRICING
Taxation rates
Summary 3 Taxation and Duty Levies 2016-2021
Average cigarette pack price breakdown
Summary 4 Average Cigarette Pack Price Breakdown: Brand Examples
CATEGORY DATA
Table 10 Sales of Cigarettes: Volume 2016-2021Table 11 Sales of Cigarettes by Category: Value 2016-2021Table 12 Sales of Cigarettes: % Volume Growth 2016-2021Table 13 Sales of Cigarettes by Category: % Value Growth 2016-2021Table 14 Sales of Cigarettes by Blend: % Volume 2016-2021Table 15 Sales of Cigarettes by Standard/Menthol/Capsule: % Volume 2016-2021Table 16 Sales of Cigarettes by Regular/Slim/Superslim/Microslim: % Volume 2016-2021Table 17 Sales of Cigarettes by Pack Size: % Volume 2016-2021Table 18 Sales of Cigarettes by Price Band: % Volume 2016-2021Table 19 NBO Company Shares of Cigarettes: % Volume 2017-2021Table 20 LBN Brand Shares of Cigarettes: % Volume 2018-2021Table 21 Sales of Cigarettes by Distribution Format: % Volume 2016-2021Table 22 Illicit Trade Estimate of Cigarettes: Volume 2016-2021Table 23 Forecast Sales of Cigarettes: Volume 2021-2026Table 24 Forecast Sales of Cigarettes by Category: Value 2021-2026Table 25 Forecast Sales of Cigarettes: % Volume Growth 2021-2026Table 26 Forecast Sales of Cigarettes by Category: % Value Growth 2021-2026Table 27 Forecast Sales of Cigarettes by Blend: % Volume 2021-2026Table 28 Forecast Sales of Cigarettes by Standard/Menthol/Capsule: % Volume 2021-2026Table 29 Forecast Sales of Cigarettes by Regular/Slim/Superslim/Microslim: % Volume 2021-2026Table 30 Forecast Sales of Cigarettes by Pack Size: % Volume 2021-2026Table 31 Forecast Sales of Cigarettes by Price Band: % Volume 2021-2026
Cigars, Cigarillos and Smoking Tobacco in Canada
KEY DATA FINDINGS
2021 DEVELOPMENTS
Plain packaging and tax hikes limit sales growth
Contraction of cigars, cigarillos and smoking tobacco sales lead to notable changes in the completive landscape
Changes in the distribution channels for cigars, cigarillos and smoking tobacco
PROSPECTS AND OPPORTUNITIES
Health concerns and price increases present a gloomy outlook for the category
Regulatory pressure and small market size set to restrict the activities of producers of Cuban cigars
Players predicted to look for new product avenues as category sales continue to fall
CATEGORY DATA
Table 32 Sales of Cigars, Cigarillos and Smoking Tobacco by Category: Volume 2016-2021Table 33 Sales of Cigars, Cigarillos and Smoking Tobacco by Category: Value 2016-2021Table 34 Sales of Cigars, Cigarillos and Smoking Tobacco by Category: % Volume Growth 2016-2021Table 35 Sales of Cigars, Cigarillos and Smoking Tobacco by Category: % Value Growth 2016-2021Table 36 Sales of Cigars by Size: % Volume 2016-2021Table 37 Sales of Cigarillos by Price Platform 2016-2021Table 38 NBO Company Shares of Cigars and Cigarillos: % Volume 2017-2021Table 39 LBN Brand Shares of Cigars and Cigarillos: % Volume 2018-2021Table 40 NBO Company Shares of Cigars: % Volume 2017-2021Table 41 LBN Brand Shares of Cigars: % Volume 2018-2021Table 42 NBO Company Shares of Cigarillos: % Volume 2017-2021Table 43 LBN Brand Shares of Cigarillos: % Volume 2018-2021Table 44 NBO Company Shares of Smoking Tobacco: % Volume 2017-2021Table 45 LBN Brand Shares of Smoking Tobacco: % Volume 2018-2021Table 46 NBO Company Shares of Pipe Tobacco: % Volume 2017-2021Table 47 LBN Brand Shares of Pipe Tobacco: % Volume 2018-2021Table 48 NBO Company Shares of Fine Cut Tobacco: % Volume 2017-2021Table 49 LBN Brand Shares of Fine Cut Tobacco: % Volume 2018-2021Table 50 Distribution of Cigars and Cigarillos by Format: % Volume 2016-2021Table 51 Distribution of Smoking Tobacco by Format: % Volume 2016-2021Table 52 Forecast Sales of Cigars, Cigarillos and Smoking Tobacco by Category: Volume 2021-2026Table 53 Forecast Sales of Cigars, Cigarillos and Smoking Tobacco by Category: Value 2021-2026Table 54 Forecast Sales of Cigars, Cigarillos and Smoking Tobacco by Category: % Volume Growth 2021-2026Table 55 Forecast Sales of Cigars, Cigarillos and Smoking Tobacco by Category: % Value Growth 2021-2026
Smokeless Tobacco, E-Vapour Products and Heated Tobacco in Canada
KEY DATA FINDINGS
2021 DEVELOPMENTS
E-vapour products and heated tobacco see significant expansion while smokeless tobacco contracts
Significant changes in the competitive landscape for alternatives to traditional tobacco products
E-commerce continues its upward march in 2021
PROSPECTS AND OPPORTUNITIES
Smoking prevalence set to rise as consumers search for “reduced-risk” options
Uncertainty mounts as regulations rapidly evolve
Illicit trade of e-vapour products and heated tobacco could add to the complexity in the category
CATEGORY INDICATORS
Table 56 Number of Adult Vapers 2016-2021
CATEGORY DATA
Table 57 Sales of Smokeless Tobacco by Category: Volume 2016-2021Table 58 Sales of Smokeless Tobacco by Category: % Volume Growth 2016-2021Table 59 Sales of Tobacco Heating Devices: Volume 2016-2021Table 60 Sales of Tobacco Heating Devices: % Volume Growth 2016-2021Table 61 Sales of Heated Tobacco: Volume 2016-2021Table 62 Sales of Heated Tobacco: % Volume Growth 2016-2021Table 63 Sales of Smokeless Tobacco, E-Vapour Products and Heated Tobacco by Category: Value 2016-2021Table 64 Sales of Smokeless Tobacco, E-Vapour Products and Heated Tobacco by Category: % Value Growth 2016-2021Table 65 Sales of E-Liquids by Nicotine Strength: % Value 2019-2021Table 66 NBO Company Shares of Smokeless Tobacco: % Volume 2017-2021Table 67 LBN Brand Shares of Smokeless Tobacco: % Volume 2018-2021Table 68 NBO Company Shares of E-Vapour Products: % Value 2017-2021Table 69 LBN Brand Shares of E-Vapour Products: % Value 2018-2021Table 70 NBO Company Shares of Tobacco Heating Devices: % Volume 2017-2021Table 71 LBN Brand Shares of Tobacco Heating Devices: % Volume 2018-2021Table 72 NBO Company Shares of Heated Tobacco: % Volume 2017-2021Table 73 LBN Brand Shares of Heated Tobacco: % Volume 2018-2021Table 74 Distribution of Smokeless Tobacco by Format: % Volume 2016-2021Table 75 Distribution of E-Vapour Products by Format: % Value 2016-2021Table 76 Distribution of Tobacco Heating Devices by Format: % Volume 2016-2021Table 77 Distribution of Heated Tobacco by Format: % Volume 2016-2021Table 78 Forecast Sales of Smokeless Tobacco by Category: Volume 2021-2026Table 79 Forecast Sales of Smokeless Tobacco by Category: % Volume Growth 2021-2026Table 80 Forecast Sales of Tobacco Heating Devices: Volume 2021-2026Table 81 Forecast Sales of Tobacco Heating Devices: % Volume Growth 2021-2026Table 82 Forecast Sales of Heated Tobacco: Volume 2021-2026Table 83 Forecast Sales of Heated Tobacco: % Volume Growth 2021-2026Table 84 Forecast Sales of Smokeless Tobacco, E-Vapour Products and Heated Tobacco by Category: Value 2021-2026Table 85 Forecast Sales of Smokeless Tobacco, E-Vapour Products and Heated Tobacco by Category: % Value Growth 2021-2026
The following categories and subcategories are included:
Tobacco
Fine Cut Cigarettes
Cigars
Cigarillos
Pipe Tobacco
Fine Cut Tobacco
Chewing Tobacco
Loose US-Style Moist Snuff
Portion US-Style Moist Snuff
Swedish-Style Snus
Closed System Single Use
Closed System Rechargeable (including starter kits)
Closed System Cartridges
Open Vaping Systems Charging and Vapourising Devices
E-liquids
Tobacco Heating Devices
Heated Tobacco
Nicotine Pouches
Tobacco
Passport Tobacco covers the seven major tobacco 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.