Germany’s cigarette sales stabilize as e-cigarette demand spikes ahead of tax hikes

After years of decline, Germany’s tobacco industry finds unexpected stability—while vaping soars. What’s behind the sudden shift in consumer habits?

, and Administrator

2025 December 26 . 5:19 PM

1 min read

This image is taken indoors. In the background there is a wall and there are two lights. A few... — This image is taken indoors. In the background there is a wall and there are two lights. A few people are sitting on the chairs and there is a table with a few things on it. In the middle of the image there is a table with a bottle, a menu card and an ashtray on it. Two men and a woman are sitting on the chairs and they are smoking. They are holding cigarettes in their hands.

Amount of taxed cigarettes in 2025 similar to the previous year - Germany’s cigarette sales stabilize as e-cigarette demand spikes ahead of tax hikes

Germany’s tobacco market is showing signs of stability after years of decline. In 2025, taxed cigarette sales are expected to match last year’s figures, ending a long trend of falling consumption. Meanwhile, demand for e-cigarette liquids has risen sharply due to upcoming tax changes.

In 2024, Germany recorded its first rise in taxed cigarette volumes in five years, with 66.2 billion cigarettes sold. This marked a slight recovery from 2023, when sales hit a historic low of around 64 billion. The BVTE now forecasts 2025 sales to stay close to 66 billion.

By the end of November 2025, some 62.6 billion cigarettes had already been taxed. Sales of fine-cut rolling tobacco remained steady at 23,635 metric tons, showing little change from previous years. The most notable shift came in e-cigarette liquids. Orders for tax stamps surged by over 22% in 2025, driven entirely by manufacturers preparing for a new tax bracket. Despite this increase, traditional cigarette use continues its long-term decline, having halved over the past 25 years.

The tobacco market in Germany is adjusting to new regulations and shifting consumer habits. While cigarette sales have stabilised, the rise in e-cigarette tax stamps reflects industry adaptation ahead of tax changes. Overall, the downward trend in smoking persists, even as alternative products gain ground.