Canada Tobacco Market

The canadian tobacco market outlook for 2018 to 2032 is heavily influenced by the country's public health focus and its efforts to reduce tobacco use, making it a challenging sector for investors. while there has been an overall decrease in the prevalence of tobacco use among canadians, the market still boasts a large consumer base of over 13 million. recent law changes have enforced the end of tobacco display advertising in retail locations, and increased taxes on tobacco products, a measure implemented to discourage tobacco consumption. the compulsory introduction of plain packaging with health warnings on tobacco products has also been implemented in 2018, likely to have a negative impact on sales. the move towards reduced smoking has driven significant trend changes in the industry, with the launch of e-cigarettes, smokeless tobacco and other smokeless alternatives. this is likely to continue to account for a larger share of the canadian tobacco market over the forecast period, despite various propaganda around their use. the development of novel nicotine delivery systems has opened up numerous opportunities for tobacco companies looking to diversify their products including both traditional and e-vaping options. this trend is likely to further gain momentum in the canadian market, as government regulations allow the approval of modified risk tobacco products such as e-cigarettes. the canadian tobacco market is also a highly consolidated marketplace with major international brands controlling the majority of the market. the likes of british american tobacco (bat) and imperial tobacco canada control the majority of the cigarette market, while convenience stores dominate the remaining market for ready-made cigarettes. overall, this is a highly dynamic and ever-evolving market, making it difficult to predict what the canadian market will look like in the coming years. despite the challenges, long-term profits are achievable by successfully navigating regulations, pricing and product positioning strategies. companies with the resources to support these efforts, are likely to succeed in the canadian tobacco market.