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Monday, March 4, 2024

FTC Releases Reports on Cigarette and Smokeless Tobacco Sales and Marketing Expenditures for 2022

The number of cigarettes that the largest cigarette companies in the United States sold to wholesalers and retailers nationwide decreased from 190.2 billion in 2021 to 173.5 billion in 2022, according to the Federal Trade Commission’s most recent Cigarette Report. The report also states that in 2022, menthol flavored cigarettes comprised 36 percent of the market among major manufacturers.

The amount spent on cigarette advertising and promotion decreased from $8.06 billion in 2021 to $8.01 billion in 2022. Price discounts paid to cigarette retailers ($5.74 billion) and wholesalers ($1.14 billion) were the two largest expenditure categories in 2022. Combined spending on price discounts accounted for 85.9 percent of industry spending.

According to the Smokeless Tobacco Report, smokeless tobacco sales decreased from 122 million pounds in 2021 to 113.3 million pounds in 2022. The revenue from those sales rose from $4.96 billion in 2021 to $4.98 billion in 2022. Menthol flavored smokeless tobacco products comprised more than half of all sales and fruit flavored smokeless tobacco products comprised 2.6 percent of pounds sold.

Spending on advertising and promotion by the major manufacturers of smokeless tobacco products in the U.S. decreased from $575.5 million in 2021 to $572.7 million in 2022. The two largest spending categories in 2022 were price discounts paid to retailers, which were $360.5 million, and promotional allowances paid to wholesalers, which were $44.7 million.

Smokeless tobacco manufacturers also reported selling $1.06 billion of nicotine lozenges, pucks and pouches not containing tobacco in 2022, more than double the $452.8 million sold in 2020.

The Commission has issued the Cigarette Report periodically since 1967 and the Smokeless Tobacco Report periodically since 1987. The Commission vote to issue both reports was 3-0.

The primary staffer on the reports is Michael Ostheimer in the FTC’s Bureau of Consumer Protection.

Official news published at https://www.ftc.gov/news-events/news/press-releases/2023/10/ftc-releases-reports-cigarette-smokeless-tobacco-sales-marketing-expenditures-2022

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