Cigarette Sales Rebound During COVID-19 For The First Time In 20 Years

Cigarette sales shot up last year at the height of the COVID-19 pandemic in a rare boost for the tobacco industry.

On Wednesday, the Federal Trade Commission (FTC) released a report that examined trends in the tobacco industry last year. It found that cigarette sales rose from $202.9 billion in 2019 to $203.7 billion in 2020 as demand from retailers and wholesale companies increased.

In apparent recognition of this heightened demand, tobacco companies began pumping out more spending on advertising and discounts for their products. The FTC found that the industry spent $7.84 billion in ads for cigarettes, as well as close to $7 billion in discounts to bring down the cost of cigarettes in 2020. Taken together, the two accounted for 88.5% of the industry’s spending last year.

The last time a rise in cigarette sales was recorded was nearly two decades ago before Big Tobacco fell under intense scrutiny for misleading the public over the health problems caused by cigarette smoking. As a result, tobacco companies were hit with billions in lawsuits and were subject to new regulations from public health officials.

The FTC also examined the sales of smokeless tobacco products and found that they, too, experienced an increase. From 2019 to 2020, sales went up from $4.53 billion to $4.82 billion.

Examining flavors was also a new feature included by the FTC in this year’s report. It found that menthol products proved to be the most popular flavor, making up 54.5% of sales followed by tobacco at 43.4% and fruit flavors at only 2.5%.

Menthol cigarettes, like other nicotine products, are facing scrutiny under the Biden administration and the Food and Drug Administration (FDA). Regulators found that menthol products are harder to quit than other tobacco products, which can lead them to contribute more to health problems for cigarette smokers in the long run.

The COVID-19 pandemic has led Americans to splurge on tobacco and other addictive substances.

In August, a Columbia University study found there was a 20% increase in liquor sales between March and September 2020 and the same period in 2019. At the start of the pandemic, it was found that marijuana sales went up from anywhere between 52% and 130% depending on the store.