The Australia 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. The evolving consumer preferences, rising demand for premium product variants, an increase in disposable incomes, the influence of tobacco harm reduction trends, and regulatory adjustments are some of the main factors strengthening the market growth.
Report Attribute
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Key Statistics
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Base Year
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2024
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Forecast Years
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2025-2033
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Historical Years
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2019-2024
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Market Size in 2024 | USD 22.87 Billion |
Market Forecast in 2033 | USD 27.14 Billion |
Market Growth Rate 2025-2033 | 1.92% |
Shift to Roll-Your-Own (RYO) Tobacco as a Cheaper Alternative
Australian households spent an average of AUD 982 annually in 2022, or approximately AUD 18.8 per week, on tobacco products. Following the Australian Government’s 2016 decision to implement annual tobacco excise hikes of 12.5% through to 2020, the cost of a standard cigarette pack soared to AUD 40, placing Australia among the countries with the highest cigarette prices globally. This sharp increase has prompted a notable consumer shift toward RYO tobacco, which is seen as a more cost-effective and customizable alternative. The RYO market is experiencing strong growth, driven by budget-conscious smokers seeking better value. In response, manufacturers have diversified their offerings, introducing pouches in various sizes and flavors, along with slim rolling papers and filter tips to maintain premium price points. This shift not only mitigates the impact of declining factory-made cigarette sales but also helps preserve total tobacco consumption by redirecting demand rather than losing it entirely to cessation.
Premiumization and Flavor Innovation in the Combustible Segment
A rising segment of affluent, experience-driven Australian smokers 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, sensory variety, and exclusivity, with limited-edition flavors and dual-flavor capsule technologies offering enhanced, mid-smoke experiences. As mainstream tobacco sales decline, manufacturers are leveraging this premiumization shift to sustain revenue by investing heavily in high-end R&D and targeted marketing. These upscale products often come in designer packaging with collectible artwork, appealing to lifestyle-focused consumers and aligning with social-media-driven ‘smoke fashion.’ The strategy has proven effective, allowing tobacco companies to maintain profitability and brand prestige despite a drop in average per-capita consumption. This shift underscores the industry's pivot toward value over volume, capturing higher margins from a discerning consumer base willing to pay more for distinctiveness and perceived sophistication.
IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the region/country level for 2025-2033. Our report has categorized the market based on type and distribution channel.
Type Insights:
The report has provided a detailed breakup and analysis of the market based on the type. This includes light, medium, and others.
Distribution Channel Insights:
A detailed breakup and analysis of the market based on the distribution channel have also been provided in the report. This includes tobacco shops, supermarkets and hypermarkets, convenience stores, online stores, and others.
Regional Insights:
The report has also provided a comprehensive analysis of all the major regional markets, which include Australia Capital Territory & New South Wales, Victoria & Tasmania, Queensland, Northern Territory & Southern Australia, and Western Australia.
The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.
Report Features | Details |
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Base Year of the Analysis | 2024 |
Historical Period | 2019-2024 |
Forecast Period | 2025-2033 |
Units | Billion USD |
Scope of the Report |
Exploration of Historical Trends and Market Outlook, Industry Catalysts and Challenges, Segment-Wise Historical and Future Market Assessment:
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Types Covered | Light, Medium, Others |
Distribution Channels Covered | Tobacco Shops, Supermarkets and Hypermarkets, Convenience Stores, Online Stores, Others |
Regions Covered | Australia Capital Territory & New South Wales, Victoria & Tasmania, Queensland, Northern Territory & Southern Australia, Western Australia |
Customization Scope | 10% Free Customization |
Post-Sale Analyst Support | 10-12 Weeks |
Delivery Format | PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request) |