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Smoking Tobacco in Germany

Germany Smoking Tobacco Market: New insights

Smoking tobacco registered a minimal increase in volume sales in 2014 as more consumers sought to reduce their tobacco expenditure. The decline in the overall smoking population and the fourth round of tax increases on RYO tobacco that came into effect in January 2014, however, limited growth to a marginal increase.

Smoking tobacco registered a minimal decline in volume sales in 2013, this being a consequence of the very cold weather during the first quarter which made it uncomfortable to smoke outdoors. The decline in the smoking population and the third round of tax increases for RYO tobacco that came into effect in January 2013 also had a negative impact on demand.

Smoking tobacco recorded positive volume growth of 1% in 2012, which was lower than the review period average of 3%. RYO tobacco remained the backbone of smoking tobacco in Germany, with much higher volume sales than pipe tobacco.

Top multinational cigarette companies were also the leaders in smoking tobacco in Germany in 2012. Reemtsma, British American Tobacco (BAT) and Philip Morris held the top three spots, with BAT's Pall Mall being the leading brand. Chesterfield is Philip Morris's flagship brand in smoking tobacco, while Reemtsma is present through John Player Special. The brands' strong presence within cigarettes has helped to support strong sales in smoking tobacco too.

The German Minister of Finance, Wolfgang Schäuble, plans to considerably raise taxation on RYO tobacco, according to news reports from January 2013. He argues that the state misses out on a considerable amount of tax income due to the big gap between the high taxation of cigarettes and the low taxation of RYO. In 2012, a 19-stick pack of cigarettes cost between €4.00-5.00, while the same amount of self-rolled cigarettes cost only around €1.20. The increase will, however, not be implemented before the next federal elections in autumn 2013. A small annual increase in tax on RYO has already been agreed on in the tobacco law for the years to 2016.

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