The Germany Tobacco Market size was $28,369.7 million in 2016. Tobacco is derived and produced from the leaf of tobacco plants which includes nicotine and are considered an addictive drug. Many people in Germany insert tobacco leaves into their mouths and suck on them instead of smoking them in cigarettes. Tobacco is a very successful global multinational industry with operations all over the globe. This industry is well aware that its product is addicting and is responsible for a large number of deaths and illnesses. Tobacco farming, on the other hand, is a modest part of German agriculture, accounting for only 0.01 percent of the total agricultural area. In 2016, the combined revenues of the world's six largest tobacco corporations totalled more than USD 346 billion, equalling 10% of Germany's Gross National Income. The prevalence of tobacco smoking in Germany was approximately 27% which is high. According to research, increases in a variety of tobacco products are consistently followed by a moderate increase in both the number of people who smoke and the percentage of people who buy other products. The application of a variety of exciting tactics in the advertising strategy has resulted in significant progress and has shown to be a means of remaining competitive and maintaining market supremacy. The tobacco industry spent an estimated €100 million ($112 million) a year on cinema and outdoor advertising in Germany. Tobacco has been a substantial part of most people's lives during the last decade. In 2016, the production of tobacco products in Germany was 31,517.8 million.
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Growth in intake of cigarette smoking among millennials and innovation in tobacco products among manufacturers increased which were some of the factors that drove the Germany Tobacco Industry during the historical period of 2016-2020.
Market Report Coverage
The report: “Germany Tobacco Market (2016-2020)", by Industry ARC covers an in-depth information on the following segments of the Germany Tobacco Market.
By Tobacco- Cigarettes, Cigars, Roll Your Tobacco, Pipe, and Water Pipe Tobacco.
Key Takeaways
- In Germany, the economic cost of smoking is 58,205 million euros. This covers both direct and indirect expenses associated with healthcare expenditures and lost productivity as a result of early mortality rates. Recently, people are using tobacco during their celebrations as it becomes a trend and fashion among youth to use cigarettes and other kinds of tobacco products. In 2020, the sales of pipe tobacco in Germany rose by 40% owing to the soaring demand for water pipe in various pubs and bars as people are looking for the place where pipe tobacco is available which increases its adoption among various clubs and bars.
- Growing intake of cigarette smoking among millennials and innovation in tobacco products among manufacturers increases are some of the factors driving the Germany Tobacco Market. However, stringent regulations of tobacco are some of the factors impeding the market growth.
- A detailed analysis of strengths, weaknesses, opportunities, and threats will be provided in the Germany Tobacco Market Report.
Germany Tobacco Market Segmentation Analysis - By Tobacco
The Germany Tobacco market based on tobacco type can be further segmented into Cigarettes, Cigars, Roll Your Tobacco, Pipe, and Water Pipe Tobacco. Cigarettes held a dominant market share in the year 2016. Among adolescents, the demand for cigarettes soaring owing to its easy availability and increasing trend of showing it as cool. Many people who work for long hours adopt cigarette especially among adults which help them to be energetic and feels less sleep. Some people have a habit of adopting cigarettes regularly which further soars the sales of cigarettes in Germany. In 2016, about 181.43 billion cigarettes are produced 2016 as the cigarette demand was more which accelerating the growth of the cigarette industry.
However, Rolling your tobacco was the fastest-growing, during the historical period of 2016-2020. Roll your own tobacco or hand roll are becoming increasingly popular owing to their low cost. In general, they are subject to fewer regulations and taxes. As a result, these goods are becoming increasingly popular among financially strapped young people and others with smaller annual incomes. Moreover, many people avoid going outside for smoking so they prefer more hand roll tobacco that helps in increasing its use. Due to the economic consequences of the Corona crisis, People are switching to the cheaper fine-cut cigarettes that you can roll yourself or fill yourself. In Germany, 10% of current smokers use to roll their own tobacco products which further soars its demand.
Germany Tobacco Market Drivers
Among Millennials, The Intake Of Cigarette Smoke Surging That Have Readily Aided The Market Growth
Cigarettes are mostly adopted by the millennials or adult population owing to their low cost and easy availability. Also, many adult populations are addicted and take cigarettes daily so, the use of cigarettes increases which further growing the demand for cigarettes. The demand for cigarettes has been fuelled by the busy schedule of workers mixed with tight deadlines and long office hours. Among adults, cigarettes are considered a stress buster and they thought that it is the only way to solve all problems. These beliefs among adults increased the sales of cigarettes. In Germany, there are more than 8 million adults who smoke cigarettes every day. Nowadays, companies are launching flavored cigarettes with a variety of tastes that helps to attract consumers to get try once and thus boosted the market growth.
Increasing Creativity Among Manufacturers To Launch Various Flavors Of Tobacco Products Is Set To Drive The Market Growth
Tobacco consumption is rising throughout the world and recently, companies are focusing on offering a variety of products that including smokeless tobacco, electronic cigarette, etc. that give rise to the trend of adopting tobacco. As many people are unable to adjust to the smoke thus, the demand for smokeless tobacco is growing. Smokeless tobacco includes smokeless gum, powder, vaporizers, and chewable tobacco products. Electronic cigarettes are becoming more popular as an alternative to regular cigarettes or as a way to stand apart. As a result of growing health concerns about the use of traditional tobacco-based cigarettes, the use of e-cigarettes has increased. Owing to such reasons, manufacturers are creating many products to attract consumers and thus driving the market growth during the historical period 2016-2020.
Germany Tobacco Market Challenges
Stringent Government Regulation In Tobacco Products Is Some Of The Factors Impeding The Market Growth.
As per Tobacco Tax Modernization Act, Aug 2021, Cigarette substitutes such as e-cigarettes become a taxable commodity like its controversy, and heated tobacco products are now be taxed appropriately. Recently, the German government announced to limit the outdoor advertising of tobacco products and are set to be implemented in stages which in turn hampering the market growth.
Germany Tobacco Industry Outlook
Product launches, mergers and acquisitions, joint ventures, and geographical expansions are key strategies adopted by players in the Germany Tobacco Market. The top 10- Germany Tobacco Market companies are-
- British American Tobacco Group,
- Mac Baren Tobacco,
- Philip Morris Manufacturing GmbH,
- Reemtsma Cigarettenfabriken GmbH,
- JT International Germany GmbH,
- Hauni Maschinenbau GmbH,
- Durninger GmbH,
- Hertz Flavors GmbH & Co. KG,
- CARL DOMSKY GmbH & Co. KG,
- Kohlhase, Koop & Co. GmbH & Co. KG.
Recent Developments
- In November 2018, BAT Group acquired Quantus Beteiligungs-und Beratungsgesellschaft mbH, Germany’s leading vapor retail chain trading as ‘Highendsmoke’, which is headquartered at Ottendorf-okrilla, Germany from a private shareholder. This acquisition increases the product portfolio of smoke and thus soaring the sales of smoking products.
- In September 2019, Mac Baren Tobacco acquired Planta Tabak-Manufaktur Dr. Manfred Obermann GmbH & Co. KG, which is headquartered in Berlin, Germany to acquire the outstanding brands from Planta Tabak-Manufactur’s traditional portfolio (pipe and finecut tobacco business of Planta Tabak-Manufaktur).
