Australia Cigarette Market 2025 | Worth USD 27.14 Billion by 2033

The latest report by IMARC Group, titled “Australia Cigarette Market Size, Share, Trends and Forecast by Type, Distribution Channel, and Region, 2025–2033,” offers a comprehensive analysis of the Australian cigarette market growth. The report also includes competitor and regional analysis, along with a breakdown of segments within the industry. The Australian cigarette market size reached USD 22.87 billion in 2024. Looking forward, IMARC Group expects the market to reach USD 27.14 billion by 2033, exhibiting a growth rate (CAGR) of 1.92% during 2025–2033.

Base Year: 2024

Forecast Years: 2025–2033

Historical Years: 2019–2024

Market Size in 2024: USD 22.87 billion

Market Forecast in 2033: USD 27.14 billion

Market Growth Rate 2025–2033: 1.92% CAGR

Australia Cigarette Market Overview

The Australian cigarette market is experiencing steady growth, influenced by factors such as increasing disposable income, evolving consumer preferences, and regulatory changes. Government-imposed annual tobacco excise increases have led to higher cigarette prices, prompting a shift towards roll-your-own (RYO) tobacco as a more affordable alternative. Additionally, demand for premium product variants is rising, reflecting shifts in consumer behavior and tastes.

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Australia Cigarette Market Growth

• Shift to Roll-Your-Own (RYO) Tobacco: The implementation of annual tobacco excise hikes has led to a rise in cigarette prices, prompting consumers to seek more affordable alternatives like RYO tobacco. This shift has contributed to the growth of the RYO market segment.
• Premiumization and Flavor Innovation: A growing segment of affluent consumers is increasingly opting for premium and super-premium cigarette brands that feature unique flavor capsules, bespoke tobacco blends, and high-end branding. This trend reflects a growing consumer appetite for quality and sensory variety.
• Expansion of Distribution Channels: The availability of cigarettes through various distribution channels, including tobacco shops, supermarkets, hypermarkets, convenience stores, and online platforms, has enhanced accessibility and convenience for consumers, supporting market growth.
• Regional Market Development: The Australian cigarette market is experiencing growth across various regions, including New South Wales, Victoria & Tasmania, Queensland, Northern Territory & Southern Australia, and Western Australia, driven by localized consumer preferences and regional economic factors.

Australia Cigarette Market Drivers

• Government Policies and Regulations: The government's implementation of tobacco excise hikes and plain packaging regulations has influenced consumer purchasing behaviors and market dynamics.
• Consumer Preferences for Cost-Effective Alternatives: Rising cigarette prices have led consumers to seek more affordable alternatives like RYO tobacco, driving growth in the RYO market segment.
• Demand for Premium Products: Increasing consumer demand for premium and super-premium cigarette brands featuring unique flavors and high-end branding is driving market growth in the premium segment.
• Expansion of Retail Channels: The growth of various retail channels, including online platforms, has improved accessibility and convenience for consumers, supporting market expansion.
• Regional Economic Factors: Economic conditions and consumer preferences in different regions of Australia are influencing the demand for cigarettes, contributing to regional market development.

Australia Cigarette Market Segmentation:

1. By Type:

·    Light

·    Medium

·    Others

2. By Distribution Channel:

·    Tobacco Shops

·    Supermarkets and Hypermarkets

·    Convenience Stores

·    Online Stores

·    Others

3. By Region:

·    Australia Capital Territory & New South Wales

·    Victoria & Tasmania

·    Queensland

·    Northern Territory & Southern Australia

·    Western Australia

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Australia Cigarette Market News:

• June 2024: Dr. Reddy’s Laboratories announced its acquisition of Haleon’s non-U.S. nicotine replacement therapy (NRT) portfolio for GBP 500 million. This includes brands like Nicotinell, Nicabate, Habitrol, and Thrive, which are available in gum, lozenge, and patch forms across countries, including Australia.
• April 2023: Viva Energy announced its acquisition of OTR Group, aiming to bolster its convenience and mobility retail business in Australia. The deal includes OTR’s Smokemart & GiftBox (SMGB) vertical, which provides tobacco and cigarette wholesale arrangements to OTR and other retail third-party networks.

Key Highlights of the Report:

• Market Performance (2019–2024)
• Market Outlook (2025–2033)
• COVID-19 Impact on the Market
• Porter’s Five Forces Analysis
• Strategic Recommendations
• Historical, Current, and Future Market Trends
• Market Drivers and Success Factors
• SWOT Analysis
• Structure of the Market
• Value Chain Analysis
• Comprehensive Mapping of the Competitive Landscape

Note: If you need specific information that is not currently within the scope of the report, we can provide it to you as part of the customization.

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IMARC Group is a leading market research company providing management strategy and market research worldwide. We partner with clients across all sectors and regions to identify their highest-value opportunities, address their most critical challenges, and transform their businesses.

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