People Worldwide Have Spent Almost One Trillion Dollars on Tobacco Products Since 2017

Last year, the world’s largest tobacco companies, Philip Morris International, British American Tobacco, Japan Tobacco, Altria Group, and Imperial Brands, grossed over $125 billion. This figure illustrates the immense scale of the tobacco industry’s financial operations despite global public health efforts to reduce tobacco use. However, it is still just a drop in the ocean compared to the shocking amount of money people worldwide spent on tobacco products in the last seven years.

According to data presented by Stocklytics.com, people worldwide have spent almost one trillion dollars on tobacco products since 2017, more than the GDP of countries like Switzerland, Poland, or Argentina.

Annual Spending on Tobacco Products More than Quadrupled in Seven Years

Despite all the efforts to reduce global tobacco use, including educational campaigns, higher taxes on tobacco products, and bans on tobacco advertising, promotion, and sponsorship, people worldwide continue spending hundreds of billions of dollars on tobacco products each year. According to the World Health Organization, approximately 1.3 billion people worldwide use tobacco. This massive consumer base has helped the tobacco sales revenue to skyrocket over the years.

According to a Statista Market Insights survey, people worldwide spent over $43 billion on tobacco products in 2017. By the end of 2021, this figure more than tripled and hit $150 billion. Although market revenues first stagnated in 2022 and then dropped to $146.8 billion in 2023, the negative trend is expected to stop in 2024 with revenues rising to $171.3 billion. This rapid growth has pushed the seven-year global spending on tobacco products to a shocking $937 billion, four times more than in 2017 and more than the GDP of Turkey, Switzerland, or Poland.

More than 90% of that value, or close to $860 billion, was spent on cigarettes, while all other tobacco products were far behind. For instance, the smoking tobacco segment hit just over $50 billion in seven-year revenue. E-cigarettes and cigars follow, with $14.5 billion and $13.5 billion, respectively.

The Statista survey also highlights a concerning trend: the average spending per user has surged by 50% in this period, climbing from $530 in 2017 to $790 this year. While this is still much lower than the market’s all-time high of $970 in 2021, it underscores the growing financial burden on individuals.

Although $937 billion in seven-year spending is shocking, Statista expects consumers to spend even more on tobacco products in the following years. According to the survey, the annual tobacco sales revenue will jump by 65% and hit $282 billion by 2029, with people worldwide spending another $1.2 trillion on tobacco products in the next five years.

China Generates 80% of Global Tobacco Sales

In a global comparison, China is the world’s leading tobacco producer, generating almost 80% of total sales revenue. Statistics show the Chinese tobacco industry grossed $730 billion since 2017, or four times more than the US and European markets combined.

Furthermore, Statista predicts the country will add another $850 billion to its tobacco sales by the end of the decade. The US tobacco market grossed $111 billion in the past seven years, and Europe follows with $52 billion.