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Tobacco Product Manufacturing in Germany Industry Data and Analysis
The development of the tobacco processing industry in Germany has been characterised by profound structural change over the past five years. Industry sales fell by an average of 6.1% per year between 2021 and 2026. The first cut was caused by the relocation of production and the rededication of the British American Tobacco plant in Bayreuth at the turn of the year 2020/2021. At the same time, the sharp rise in production costs has massively increased the pressure on companies. According to the World Bank, the price of tobacco raw materials has risen by around 65% since 2021, while labour, energy and bureaucratic costs have further impaired the attractiveness of Germany as a production location. At the same time, the price of a packet of cigarettes has risen by around 30% since 2021, which has further dampened the consumption of traditional cigarettes. German consumers are comparatively price-sensitive and are increasingly switching to cheaper value and retail brands as well as alternative nicotine products such as fine cut, e-cigarettes, water pipe tobacco and tobacco heaters. This shift in consumption is accelerating structural change, as the capacity utilisation of domestic plants is falling and production costs per unit are continuing to rise. Against this backdrop, Philip Morris has closed its German plants in 2025 and Reemtsma has announced that it will cease production in Langenhagen by 2027.
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What's included in this industry analysis
IBISWorld's research coverage on the Tobacco Product Manufacturing industry in Germany includes market sizing, forecasting, data and analysis from 2016-2031. The most recent publication was released May 2026.
About this industry
What's this industry report about?
The Tobacco Product Manufacturing industry in Germany operates under the WZ industry code C12.00DE. The industry includes the processing of tobacco leaves into various tobacco products such as cigarettes or cigars. The manufacture of products from tobacco substitutes and homogenised or reconstituted tobacco also falls under the industry definition. The cultivation of tobacco and the drying of tobacco leaves, on the other hand, are not part of the industry's activities. Related terms covered in the Tobacco Product Manufacturing industry in Germany include electric cigarette (e-cigarette), fine-cut tobacco, twist tobacco, shisha / water pipe, aerosol, vaporiser and zigarillo.
What's included in this industry?
Products and services covered in Tobacco Product Manufacturing industry in Germany include Cigarettes, Water pipe tobacco, smoking tobacco and smoking tobacco made from tobacco substitutes and Cigars and cigarillos.
What companies are included in this industry?
Companies covered in the Tobacco Product Manufacturing industry in Germany include British American Tobacco (Germany) GmbH, Reemtsma Cigarettenfabriken GmbH and JT International Germany GmbH.
Performance
What's included in the Performance chapter?
The Performance chapter covers detailed analysis, datasets, detailed current performance, sources of volatility and an outlook with forecasts for the Tobacco Product Manufacturing industry in Germany.
Questions answered in this chapter include what's driving current industry performance, what influences industry volatility, how do successful businesses overcome volatility, what's driving the industry outlook. This analysis is supported with data and statistics on industry revenues, costs, profits, businesses and employees.
Products & Markets
What's included in the Products and Markets chapter?
The Products and Markets chapter covers detailed product and service segmentation, analysis of major markets and international trade data for the for the Tobacco Product Manufacturing industry in Germany.
Questions answered in this chapter include how are the industry's products and services performing, what are innovations in industry products and services, what products or services do successful businesses offer and what's influencing demand from the industry's markets. This includes data and statistics on industry revenues by product and service segmentation and major markets.
Geographic Breakdown
What's included in the Geographic Breakdown chapter?
The Geographic Breakdown chapter covers detailed analysis and datasets on regional performance of the Tobacco Product Manufacturing industry in Germany.
Questions answered in this chapter include where are industry businesses located and how do businesses use location to their advantage. This includes data and statistics on industry revenues by location.
Competitive Forces
What's included in the Competitive Forces chapter?
The Competitive Forces chapter covers the concentration, barriers to entry and supplier and buyer profiles in the Tobacco Product Manufacturing industry in Germany. This includes data and statistics on industry market share concentration, barriers to entry, substitute products and buyer & supplier power.
Questions answered in this chapter include what impacts the industry's market share concentration, how do successful businesses handle concentration, what challenges do potential industry entrants face, how can potential entrants overcome barriers to entry, what are substitutes for industry services, how do successful businesses compete with substitutes and what power do buyers and suppliers have over the industry and how do successful businesses manage buyer & supplier power.
Companies
What's included in the Companies chapter?
The Companies chapter covers Key Takeaways, Market Share and Companies in the Tobacco Product Manufacturing industry in Germany. This includes data and analysis on companies operating in the industry that hold a market share greater than 5%.
Questions answered in this chapter include what companies have a meaningful market share and how each company is performing.
External Environment
What's included in the External Environment chapter?
The External Environment chapter covers Key Takeaways, External Drivers, Regulation & Policy and Assistance in the Tobacco Product Manufacturing industry in Germany. This includes data and statistics on factors impacting industry revenue such as economic indicators, regulation, policy and assistance programs.
Questions answered in this chapter include what demographic and macroeconomic factors impact the industry, what regulations impact the industry, what assistance is available to this industry.
Financial Benchmarks
What's included in the Financial Benchmarks chapter?
The Financial Benchmarks chapter covers Key Takeaways, Cost Structure, Financial Ratios, Valuation Multiples and Key Ratios in the Tobacco Product Manufacturing industry in Germany. This includes financial data and statistics on industry performance including key cost inputs, profitability, key financial ratios and enterprise value multiples.
Questions answered in this chapter include what trends impact industry costs and how financial ratios have changed overtime.
Industry Data
What's included in the Industry Data chapter?
The Industry Data chapter includes 10 years of historical data with 5 years of forecast data covering statistics like revenue, industry value add, establishments, enterprises, employment and wages in the Tobacco Product Manufacturing industry in Germany.
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Frequently Asked Questions
What is the market size of the Tobacco Product Manufacturing industry in Germany in 2026?
The market size of the Tobacco Product Manufacturing industry in Germany is €9.7bn in 2026.
How many businesses are there in the Tobacco Product Manufacturing industry in Germany in 2026?
There are 51 businesses in the Tobacco Product Manufacturing industry in Germany, which has declined at a CAGR of 3.8 % between 2021 and 2026.
How may import tariffs affect the Tobacco Product Manufacturing industry in Germany?
The Tobacco Product Manufacturing industry in Germany is likely to be impacted by import tariffs with imports accounting for a moderate share of industry revenue.
How may export tariffs affect the Tobacco Product Manufacturing industry in Germany?
The Tobacco Product Manufacturing industry in Germany is likely to be significantly impacted by export tariffs with exports accounting for a high share of industry revenue.
Has the Tobacco Product Manufacturing industry in Germany grown or declined over the past 5 years?
The market size of the Tobacco Product Manufacturing industry in Germany has been declining at a CAGR of 6.1 % between 2021 and 2026.
What is the forecast growth of the Tobacco Product Manufacturing industry in Germany over the next 5 years?
Over the next five years, the Tobacco Product Manufacturing industry in Germany is expected to decline.
What are the biggest companies in the Tobacco Product Manufacturing industry in Germany?
The biggest companies operating in the Tobacco Product Manufacturing industry in Germany are British American Tobacco (Germany) GmbH, Reemtsma Cigarettenfabriken GmbH and JT International Germany GmbH
What does the Tobacco Product Manufacturing industry in Germany include?
Cigarettes and Water pipe tobacco, smoking tobacco and smoking tobacco made from tobacco substitutes are part of the Tobacco Product Manufacturing industry in Germany.
Which companies have the highest market share in the Tobacco Product Manufacturing industry in Germany?
The company holding the most market share in the Tobacco Product Manufacturing industry in Germany is British American Tobacco (Germany) GmbH.
How competitive is the Tobacco Product Manufacturing industry in Germany?
The level of competition is high and increasing in the Tobacco Product Manufacturing industry in Germany.
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