Rising Demand for Heated Tobacco as Traditional Cigarette Sales Decline

In recent years, Hungary has seen a significant shift in tobacco consumption trends, with heated tobacco products rapidly gaining popularity while traditional cigarette use continues to decline. This trend is reshaping the tobacco market, as more consumers are switching to alternatives, driven by various factors.

As of 2024, the gap between heated tobacco and traditional cigarettes is steadily closing, writes 24.hu. Data from the Regulatory Activities Surveillance Authority (SZTFH) shows that heated tobacco sales have skyrocketed, breaking records month by month.

In July and August 2024 alone, nearly 300 million heated tobacco units were sold—an unprecedented figure.

This is a sharp increase from January 2020, when just 38.3 million units were sold per month, signaling a more than doubling of demand over the past few years. By August 2024, 2,245 million heated tobacco units had already been sold, and projections suggest that this number could reach between 3,300 and 3,400 million by the end of the year.

Sales of tobacco products and smoking accessories between 2020 and 2022 are depicted, with cigarettes and heated tobacco products represented in dark green and blue (the first two units in the left column). 

Meanwhile, traditional cigarette consumption has seen a steady decline. Monthly sales of cigarettes in 2024 are 150-200 million fewer than in 2020, translating to about 7.5 million fewer packs per month. Annual sales have dropped from 7,644 million in 2020 to an expected further reduction from 5,715 million in 2023. This decline also extends to fine-cut tobacco products used for rolling or filling cigarettes, with monthly sales down by 20-25% compared to 2020 levels.

Currently, tobacco shops are selling 80-100 tonnes less fine-cut tobacco per month than they did four years ago.

Another factor impacting the market is the growing black market for tobacco, which has reached unprecedented levels in 2024. Many consumers are turning to illegal sources for tobacco, further complicating the picture of official consumption statistics. This unregulated trade remains a significant challenge in accurately tracking overall tobacco consumption.

The introduction of stricter regulations, including the phase-out of flavored heated tobacco products, could influence future trends. However, as seen in the past with traditional cigarettes, consumers may not quit altogether but will likely find alternative products that suit their preferences. The future of tobacco consumption in Hungary appears to be one of continued transition, with heated products poised to overtake traditional tobacco in the coming years.

Via 24.hu; Featured Image: Pixabay