Tobacco Prices in France May Rise by Up to €1.50 in 2024; Tobacconists Fear Surge in Illegal Trade

French tobacconists are concerned that a tobacco price increase of up to €1.50 starting in 2024 could trigger a sharp surge in illegal trade.

News reports from French media say that by 2024, tobacco prices may rise by as much as €1.50. Tobacconists said they are “deeply worried” about price regulation affecting roll-your-own tobacco and heated tobacco products. They fear these increases will further fuel the illegal market.

According to reports, tobacco retailers expect cigarette prices to rise by €0.40 to €0.50 on January 1, 2024, because tobacco taxes are now indexed to inflation. In 2023, tax authorities also introduced a new tax regime for products that had previously faced lower tax burdens, such as roll-your-own tobacco and heated tobacco products. Most tobacco manufacturers said prices would go up by €0.50 to reflect inflation, but some companies have taken a more aggressive approach. Philip Morris International (PMI), for example, will raise products including Marlboro by at least €1, according to a document released by customs authorities this Tuesday.

“This price adjustment unfairly burdens consumers of roll-your-own tobacco and heated tobacco products, most of whom are living in poverty,” the tobacco distributors’ federation said. “We already knew prices would increase, and adjustments to roll-your-own tobacco and heated tobacco products were unavoidable, but the current situation has gone somewhat beyond our estimates. Such a sharp rise will push consumers even more toward the illegal market.”

A new anti-smoking plan proposed by the French government at the end of last November is expected to gradually raise the minimum price of a pack of 20 cigarettes to €13 by early 2027, with the first step being an increase to €12 in 2025.