Summary
Up in smoke: Smoking prevalence will likely continue to decline, hurting industry revenue growth
Abstract
Cigarette & Tobacco Product Wholesaling in Canada
The Cigarette and Tobacco Product Wholesaling industry in Canada has surpassed major obstacles and has succeeded in adapting to new consumer trends and client procedures. Federal and provincial governments have levied higher excise taxes on cigarette products to raise tax revenue and reduce tobacco consumption. To sustain profit amid declining sales volumes, cigarette manufacturers have consistently raised prices on their products, enabling wholesalers to raise their prices and aiding industry profit to grow. Additionally, major manufacturers have improved distribution networks, boosting sales. Nonetheless, industry revenue is estimated to fall an annualized 0.6% to $7.9 billion over the five years to 2023, despite a rise of 0.2% in 2023 alone due to COVID-19. One main cause of the decline is decreased sales from duty-free stores, which resulted from declining travel due to the pandemic.
The Cigarette and Tobacco Product Wholesaling industry in Canada acquires packaged cigarettes and other tobacco products from manufacturers and sells the goods to various retail stores, such as supermarkets, convenience stores, specialized tobacco stores and bars. They may also sell to other wholesalers. The sales and distribution offices of tobacco product manufacturers are included in this industry.
This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.
