Sales Decline for Cigarettes, Increase for Smokeless Tobacco

March 30, 2016 02:16 pm News Staff

The good news in the fight against tobacco use in patients is the number of cigarettes sold in the United States by the largest cigarette companies to wholesalers and retailers declined from 267.7 billion in 2012 to 256.7 billion in 2013. This is according to the latest data available from the Federal Trade Commission's recent Cigarette Report for 2013.(www.ftc.gov)

[Young woman smoking e-cigarette]

The amount spent on cigarette advertising and promotion also decreased, from $9.17 billion in 2012 to $8.95 billion in 2013. Of this 2013 spending, $7.64 billion went to price discounts to cigarette retailers or wholesalers in order to reduce the price of cigarettes for consumers. "Price discounts" was the largest expenditure category in 2013, just like it's been each year since 2002, accounting for 85.4 percent of industry spending.

The bad news in the effort to squelch tobacco use comes from the Federal Trade Commission's accompanying Smokeless Tobacco Report for 2013.(www.ftc.gov)

Spending on advertising and promotion by the major manufacturers of smokeless tobacco products in the United States mirrored the boom in the smokeless tobacco industry during this time, increasing from $435.9 million in 2012 to $503.2 million in 2013. The increase is alarming, as this spending had actually decreased from $452 million in 2011 to 2012's total.

As with cigarettes, "price discounts" made up the largest spending category for smokeless tobacco, totaling $282.7 million -- or 56.2 percent of all spending in 2013.

Overall, smokeless tobacco sales rose from 125.5 million pounds in 2012 to 128 million pounds in 2013. The revenue from those sales increased from $3.08 billion in 2012 to $3.26 billion in 2013.

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