Germany Sees First Rise in Taxed Cigarette Sales Since 2019

A tax increase set for 2025 prompted tobacco producers to pre-purchase tax stamps, temporarily reversing a decades-long decline in cigarette consumption.

In 2024, 66.2 billion cigarettes were taxed in Germany, marking a 3.5% increase compared to the previous year, according to the Federal Statistical Office.
The rise in taxed cigarette sales is attributed to producers ordering tax stamps in advance of a tobacco tax hike effective January 1, 2025, rather than an actual increase in smoking rates.
Despite the short-term rise, cigarette consumption in Germany has been in long-term decline, with per capita consumption in 2024 down 20% from 2014 and over 50% from 1991 levels.
Sales of water pipe tobacco surged by 75% in 2024, partially due to the lifting of restrictions on packaging sizes, while traditional pipe tobacco sales dropped by 21%.
Taxes on alternative tobacco products, such as e-cigarette liquids and heated tobacco, have also risen in recent years, with new rates introduced in 2022 and 2024.