Cigarette Sales Rose in 2020 for First Time in 20 Years
Americans purchased more cigarettes last year, the first uptick in two decades, according to a new report released by the Federal Trade Commission.
The number of cigarettes purchased by wholesalers and retailers rose slightly, 0.4%, to 203.7 billion from 202.9 billion in 2019.
The FTC’s Cigarette Report didn’t offer reasons for the increase in sales among the major tobacco companies, Altria Group Inc., MO -0.94% ITG Brands LLC, Reynolds American Inc. and Vector Group Ltd. VGR -1.01%
The FTC didn’t respond to requests for comment.
Altria Group, maker of Marlboro cigarettes, previously pointed to the pandemic as a reason people are lighting up more. Chief Executive Billy Gifford said Americans spent less money on travel, gas and entertainment last year and that fewer social engagements led to more “tobacco-use occasions.”
Tobacco companies spent more on marketing last year, $7.84 billion, compared with $7.62 billion in 2019. However, price discounts accounted for 88.5% of industry spending, according to the report.
People who once vaped may also have returned to regular cigarettes because of health concerns over vaping prompted by a mysterious lung illness in 2019 that was ultimately linked to vitamin E oil in marijuana vaping products. Bans on flavored vaping and increased e-cigarette taxes may have also contributed to the increase, consumers and industry officials said.
Liquor sales also increased in 2020 as consumers looked to stock up at home and drink pricier spirits.
The volume of smokeless tobacco products sold also increased to 126.9 million pounds from 126.0 million pounds in 2019, according to the 2020 Smokeless Tobacco Report. Smokeless tobacco includes chewing and dipping tobacco. Overall sales rose to $4.82 billion in 2020 from $4.53 billion the year before.
For the first time the report also included data on the flavors of the companies’ smokeless tobacco products. Menthol flavored smokeless tobacco products comprised more than half of all sales revenues, 54.5%, while regular tobacco flavored products made up 43.4%.
In April, the Biden administration and the Food and Drug Administration announced they would take steps to ban menthol cigarettes, a policy move that could sweep more than a third of all cigarettes sold in the U.S. from the market. In 2013, the FDA found that menthols are harder to quit than regular cigarettes.
