Sales of traditional cigarettes have been sluggish as discount brands have won customers during the pandemic

Sep 21, 2020

Sales of traditional cigarettes have been sluggish as discount brands have won customers during the pandemic

According to the Nielsen report , traditional cigarette sales continued to decline, and during the covid-19 pandemic, more consumers chose low-cost options rather than top brands.

Overall sales of traditional cigarettes fell 2.2% in the four weeks to September 5.

By comparison, sales fell 0.8% in the four weeks of May.

Meanwhile, sales of e-cigarettes (down 15.1% in four weeks) continued to decline in the seven months after the food and Drug Administration implemented the latest round of enhanced regulations on products.

Goldman Sachs analyst Ron J. Reynolds tobacco plans to raise the price of most traditional cigarette brands by 13 cents a pack from September 28.

Pricing is the price that a wholesaler pays the manufacturer for his products. This increase is usually passed on to customers at retail.

Since Nielsen released its report on August 10, 2019, the overall sales growth of e-cigarettes has declined steadily, with a year-on-year increase of 60.2%.

Juul's four week dollar sales have fallen from 50.2% growth on August 10, 2019 to the latest reported 26.7% decline. In contrast, Reynolds VUSE rose 66.5% in its latest report and njoy fell 41.1%.
Juul has 58.2% market share, up from 57.8% in previous reports.

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Sales of traditional cigarettes have been sluggish as discount brands have won customers during the pandemic

Sales of traditional cigarettes have been sluggish as discount brands have won customers during the pandemic