The value added of tobacco products in the UK demonstrated significant fluctuations between 2013 and 2023, with a notable downturn from 2016 to 2020, where the value dropped from £1.69 billion to £1.23 billion. In the most recent years, from 2021 to 2023, the value remained relatively stable, albeit with slight decreases of -0.82% and -0.83% respectively.
In 2023, the value stood at £1.44 billion, reflecting a reduction of approximately -0.7% per year over the past five years. Looking forward, the sector is expected to continue its gradual decline, with the 5-year forecast indicating an annual decrease of -0.7% and an overall growth rate of -3.44% by 2028.
Future trends to watch for include:
- Shifting consumer preferences towards healthier lifestyles.
- Increased regulation and taxation on tobacco products.
- Growth in alternative nicotine delivery systems such as e-cigarettes.
- Potential economic impacts from ongoing public health campaigns against smoking.
