France tobacco tax increases impact smoking rates and local markets

Over the last twenty-five years, tobacco prices in France have increased nearly fourfold. In 2000, a standard pack of cigarettes averaged 3.20 euros, whereas by 2025, prices reached 13 euros. Taxes, including excise duties and VAT, now constitute more than 80 percent of the retail price. Since 2023, excise duties have been indexed to inflation without a ceiling, leading to automatic annual increases.

Data from Santé publique France indicates that daily smoking among 18 to 75-year-olds fell from 25 percent in 2014 to 18 percent in 2024. While health agencies attribute this decline to a combination of measures, including price hikes and nicotine replacement therapies, the decline was not continuous, stalling between 2019 and 2021.

In Corsica, the elimination of a long-standing tax niche has caused significant local concern. Previously, cigarettes in Corsica were taxed 25 percent less than on the mainland, but prices have been rising annually to align with continental rates. As of January 1, 2026, prices in Corsica are identical to the rest of France. Local tobacconists report a rise in the parallel market and a shift in consumer behavior, with some smokers purchasing cheaper brands or stockpiling cigarettes from abroad, such as Sardinia, to avoid higher costs.