The tobacco industry in Canada - statistics & facts
The Canadian tobacco industry has evolved significantly over the years, shaped by public health policies, changing consumer habits, as well as technological advancements.
Historically, tobacco was one of the commodities that fueled trade and economic growth within the country. Yet, as the health implications linked to its use became more widely recognized, the industry’s landscape has had no other option but to change.
As a response, and to still generate profit, cigarette and tobacco manufacturers have increased their prices and have managed to do so at a rate faster than the demand has dropped. Thus, the revenue of the tobacco products market in Canada is still expected to grow, albeit at a slower pace, in the coming years.
Caught between its historical economic significance and the imperative to address the health impacts of its products, the tobacco industry is now at a crossroads. To move forward, the industry will have to prove its ability to innovate and adapt to a continuously changing society that is also increasingly focused on health and wellness.
The decline and fall of the tobacco empire?
All around the globe, smoking rates are generally declining, a trend that can also be observed across Canada. The government has even set the nation a goal: to reduce tobacco use to under five percent of the population by 2035. To achieve this, the government has increased taxes and implemented several policies regarding smoking and tobacco products in recent years. The results are promising, as the number of smokers in Canada has been consistently decreasing in the last two decades.As a response, and to still generate profit, cigarette and tobacco manufacturers have increased their prices and have managed to do so at a rate faster than the demand has dropped. Thus, the revenue of the tobacco products market in Canada is still expected to grow, albeit at a slower pace, in the coming years.
Between innovations and challenges
Industry leaders have sought to explore new product lines and markets to tackle these challenges. For example, alternatives such as vaping and e-cigarettes have been marketed as less harmful than traditional cigarettes. Additionally, these new devices are also targeted towards younger demographics and people looking to quit smoking, showing the industry’s attempt to remain relevant in an increasingly health-conscious market.Caught between its historical economic significance and the imperative to address the health impacts of its products, the tobacco industry is now at a crossroads. To move forward, the industry will have to prove its ability to innovate and adapt to a continuously changing society that is also increasingly focused on health and wellness.
