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Cigarettes in the U.S. - Statistics & Facts

The United States is the second largest market for cigarettes in the world, with revenues exceeding 90 billion U.S. dollars in 2019. The United States is second only to China, much of whose market is controlled by state-owned China National Tobacco Corporation (CNTC) which controls a 44 percent share of the global cigarette market. Philip Morris International and British American Tobacco came in second and third places, each accounting for 14 percent and 12 percent global market shares, respectively.

In the United States, tobacco consumption has witnessed a sharp decline over the years. The number of cigarettes sold in the United States fell from nearly 400 billion in 2001 to about 216.9 billion in 2018. For the last 20 years, cigarette sales in the United States have followed a downward trend, registering yearly sales declines.

In the face of dwindling sales, market leaders such as Philip Morris have managed to maintain a stable inflow of revenues, even increasing global net revenue from around 67 billion U.S. dollars in 2010 to nearly 78 billion U.S. dollars in 2019. A reason behind this could be the emergence of smokeless tobacco and vaping products. Philip Morris manufactures the e-cigarette brand IQOS MESH.

In addition to the rising popularity of e-cigarettes in the United States, declining cigarettes sales could also be due to growing public awareness of the health risks associated with smoking, coupled with the government’s effort to curb cigarettes consumption. Indeed, cigarettes taxes were as high as 4.50 U.S. dollars per pack of cigarettes in the District of Columbia as of July 2020. Whether taxation effectively reduces tobacco consumption is an unsettled question, but what is certain is that smoking rates in the United States have decreased considerably over the years.

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Cigarettes in the U.S.

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