Italy tobacco market shifts as non-combustion products grow

The Italian tobacco market is undergoing a significant structural shift. According to the 2026 report on the distribution of smoke and non-smoke products presented by Logista, traditional products like cigarettes and cigars now account for approximately 70% of distributed volumes, down from 85% in 2019. Conversely, new generation non-combustion products, such as heated tobacco, have grown to nearly 20% of the market as of 2025.

Despite the decline in traditional cigarette volumes, the total market value has risen from 18.5 billion euros in 2019 to 22 billion euros in 2025, driven largely by an 11% increase in prices. The sector remains a vital economic pillar, with Logista moving over 80 million kilograms of products annually and contributing approximately 15 billion euros in excise duties to the treasury.

Industry leaders and government officials have expressed concerns regarding European Union regulatory trends. Officials, including Deputy Minister Valentino Valentini and Undersecretary Claudio Durigon, have warned against 'ideological' EU positions that could penalize the sector through excessive taxation or strict regulations. They argue such moves could drive consumers toward illegal markets and threaten thousands of jobs within the Italian supply chain, which relies on a strong partnership between agriculture and multinational innovation.