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Tobacco Retailing in the UK - Market Size, Industry Analysis, Trends and Forecasts (2025-2029)

Gaetana Mak Gaetana Mak London, United Kingdom Last Updated: August 2025 SIC UK-G4723

Revenue

£37.6bn

2025-26

£38.7bn

Past 5-Year Growth

Profit

£X.Xbn

Employees

151k

Businesses

82,002

Wages

£X.Xbn

Tobacco Retailing in the UK industry analysis

Revenue in the Tobacco Retailers in Europe industry is expected to contract at a compound annual rate of 1.3% to €37.6 billion over the five years through 2025. Rising public awareness of the health risks of smoking, driven by intense anti-smoking campaigns by the government, has caused smoking rates and sales to plummet for tobacco retailers. Strong legislation among Western Europe has hit sales hard, while stiff competition from supermarkets and convenience stores has shifted revenue away from specialist tobacco retailers.

Trends and Insights

  • Growing health concerns will prove detrimental to the industry. Growing awareness of smoking-related health risks, coupled with mounting costs and strict regulatory actions, continue to push down smoking rates, hurting tobacco sales.
  • High-end products buoy tobacconists. Even as cigarette sales dwindle, luxury items like cigars and pipe tobacco continue to appeal to high-income consumers.
  • Tobacconists have struggled to maintain their presence in the current climate. Tightening legislation, increased taxing and increasing consumer health awareness have pushed many tobacconists out of the market. Competition from less costly supermarkets has also proved troubling.
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Top Questions Answered in this Report

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What is the market size of the Tobacco Retailing industry in the United Kingdom in 2025?

The market size of the Tobacco Retailing industry in the United Kingdom is £37.6bn in 2025.

How many businesses are there in the Tobacco Retailing industry in the United Kingdom in 2025?

There are 82,002 businesses in the Tobacco Retailing industry in the United Kingdom, which has grown at a CAGR of 1.3 % between 2020 and 2025.

Has the Tobacco Retailing industry in the United Kingdom grown or declined over the past 5 years?

The market size of the Tobacco Retailing industry in the United Kingdom has been declining at a CAGR of 0.2 % between 2020 and 2025.

What is the forecast growth of the Tobacco Retailing industry in the United Kingdom over the next 5 years?

Over the next five years, the Tobacco Retailing industry in the United Kingdom is expected to grow.

What does the Tobacco Retailing industry in the United Kingdom include?

Cigarettes and Cigars are part of the Tobacco Retailing industry in the United Kingdom.

How competitive is the Tobacco Retailing industry in the United Kingdom?

The level of competition is moderate and increasing in the Tobacco Retailing industry in the United Kingdom.

Everything you need in one report

  • Reliable market estimates from 2015-2030
  • Competitive analysis, industry segmentation, financial benchmarks
  • Powerful SWOT, Porter’s Five Forces and risk management frameworks
  • Online membership platform with PDF, Word, Excel and PPT exports

Table of Contents

External Environment

Highlights

Trends
  • Regulation & Policy
  • Assistance

Key Takeaways

Tobacconists only have private support to turn to. European governments continue to discourage smoking through regulations and higher duties.

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External Drivers

Analysis

What demographic and macroeconomic factors impact the Tobacco Retailing in the UK industry?

Financial Benchmarks

Highlights

Trends
  • Profit Margin
  • Average Wage
  • Largest Cost

Key Takeaways

Government policies and climbing inflation pressurise profit. Rising excise duties and dwindling sales have picked away at tobacconists’ returns.

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Cost Structure

Charts
  • Share of Economy vs. Investment Matrix
  • Industry Cost Structure Benchmarks:
    • Marketing
    • Depreciation
    • Profit
    • Purchases
    • Wages
    • Rent
    • Utilities
    • Other
Analysis

What trends impact cost in the Tobacco Retailing in the UK industry?


Key Ratios

Data tables
  • IVA/Revenue (2015-2030)
  • Imports/Demand (2015-2030)
  • Exports/Revenue (2015-2030)
  • Revenue per Employee (2015-2030)
  • Wages/Revenue (2015-2030)
  • Employees per Establishment (2015-2030)
  • Average Wage (2015-2030)

Country Benchmarks

European Leaders & Laggards

Data Tables

Top and bottom five countries listed for each:

  • Revenue Growth (2025)
  • Business Growth (2025)
  • Job Growth (2025)

European Country Performance

Data Tables

Rankings available for 37 countries. Statistics ranked include:

  • IVA/Revenue (2025)
  • Imports/Demand (2025)
  • Exports/Revenue (2025)
  • Revenue per Employee (2025)
  • Wages/Revenue (2025)
  • Employees per Establishment (2025)
  • Average Wage (2025)

Structural Comparison

Data Tables

Trends in 37 countries benchmarked against trends in Europe

  • Concentration
  • Competition
  • Barriers to Entry
  • Buyer Power
  • Supplier Power
  • Volatility
  • Capital Intensity
  • Innovation
  • Life Cycle

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2015-2030)
  • IVA (2015-2030)
  • Establishments (2015-2030)
  • Enterprises (2015-2030)
  • Employment (2015-2030)
  • Exports (2015-2030)
  • Imports (2015-2030)
  • Wages (2015-2030)

Methodology

Where does IBISWorld source its data?

IBISWorld is a world-leading provider of business information, with reports on 5,000+ industries in Australia, New Zealand, North America, Europe and China. Our expert industry analysts start with official, verified and publicly available sources of data to build an accurate picture of each industry.

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