U.S. Cigarette Sales Declined in 2020-2021
The number of cigarettes sold by the largest U.S. cigarette companies to wholesalers and retailers nationwide fell from 203.7 billion in 2020 to 190.2 billion in 2021. The report also noted that by 2021, menthol cigarettes accounted for 37% of the market
The number of cigarettes sold by the largest cigarette companies in the United States to wholesalers and retailers nationwide fell from 203.7 billion in 2020 to 190.2 billion in 2021. The report also noted that by 2021, menthol cigarettes accounted for 37% of the market share among major manufacturers, more than double the 16% share recorded in 1963.
Cigarette advertising and promotional spending increased from $7.84 billion in 2020 to $8.06 billion in 2021. Price discounts paid to cigarette retailers ($6.01 billion) and wholesalers ($917 million) were the two largest spending categories in 2021. Total spending on price discounts accounted for 86% of industry expenditures.
According to the smokeless tobacco report, smokeless tobacco sales declined from 126.8 million pounds in 2020 to 122 million pounds in 2021. Revenue from those sales increased from $4.82 billion in 2020 to $4.96 billion in 2021. Menthol smokeless tobacco products accounted for more than half of all sales, while fruit-flavored smokeless tobacco products accounted for 2.7%.
Advertising and promotional spending by major U.S. smokeless tobacco manufacturers increased from $567.3 million in 2020 to $575.5 million in 2021. As with cigarettes, price discounts made up the two largest spending categories, with $308.2 million paid to retailers and $81.3 million paid to wholesalers in 2021. Total spending on price discounts accounted for 67.7% of all industry expenditures.
Smokeless tobacco manufacturers also reported sales of tobacco-free nicotine lozenges or nicotine pouches totaling $804.8 million in 2021, up from $422.7 million in 2020.
The Commission has issued regular cigarette reports since 1967 and regular smokeless tobacco reports since 1987.
