WHY ONLINE SALES OF TOBACCO AND CIGARETTES ARE INCREASING IN THE US
Tax rates associated with sales of cigarettes in the US are way too high; the government implemented this to possibly frustrate smokers to reduce the number of cigarette consumers in the country.
Introduction
For the first time in two decades, online cigarette sales have increased during the COVID-19 pandemic. This trend reflects changing consumer preferences and the convenience offered by online purchasing.
Recent Trends in Cigarette Sales
According to the Federal Trade Commission’s annual Cigarette Report, manufacturers sold 203.7 billion cigarettes in 2020, up 0.4% from 202.9 billion in 20197. This increase marks a reversal of the long-term declining trend in cigarette sales.
Impact of the COVID-19 Pandemic
The pandemic has significantly influenced tobacco consumption patterns:
- Total nicotine consumption in the U.S. increased by 3.4% in 20207.
- Monthly e-cigarette sales rose by nearly 50% during the first two years of the pandemic1.
- Cigarette sales were 14.1% higher than expected between March 2020 and June 20217.
Advantages of Buying Cigarettes Online
Online cigarette purchases offer several benefits to consumers:
- 24/7 availability of genuine brand cigarettes
- Convenient payment options
- More affordable prices compared to local stores
- Potential tax savings
- Comfort of home delivery
- No duty fees
- Money-back guarantee policies
Shift in Consumer Behavior
The increase in online cigarette sales reflects a broader shift in consumer behavior towards e-commerce, accelerated by the pandemic. This trend aligns with the overall growth in e-cigarette and tobacco product sales observed during this period5.
Conclusion
While online cigarette sales have increased, it’s important to note that overall cigarette sales have shown a long-term decline. In 2022, cigarette sales decreased to 173.5 billion, down from 190.2 billion in 20216. This suggests that while the pandemic caused a temporary surge, the overall trend of declining cigarette use continues. online sales of cigarettes