The growth of the UK tobacco and smokers’ accessories sector, despite a long-term decline in overall smoking rates, is primarily driven by an intense consumer shift toward value-driven products (such as roll-your-own), the rapid expansion of the smoking accessories category (filters and papers), and the rise of next-generation nicotine products like heated tobacco and pouches.
Inflation and rising household bills have driven many consumers to switch from factory-made cigarettes to RYO tobacco, which is significantly cheaper.
RYO is the fastest-growing segment in the tobacco category, accounting for a significant share of the market, with wholesalers advised to focus on “ultra-value” brands.
While premium cigarette sales are declining, value brands are seeing increased demand.
The shift toward RYO has boosted the accessories market to over £352m in annual sales.
Rolling papers and filters are experiencing high growth, with filter tips growing at approximately 9% to 10% annually.
The introduction of eco-friendly products, such as plastic-free filters and unbleached, ultra-thin papers, is driving demand for premium accessories.
The heated tobacco category has grown by 400% in the last three years, with products like Ploom and IQOS offering a “smoke-free” alternative.
The market for nicotine pouches nearly doubled in 2024, driven by their reputation as a discreet, smoke-free, and more socially acceptable alternative.
Following the ban on single-use vapes, consumers are switching to rechargeable/refillable devices, which often require accessories or specialised tobacco sticks.
Cigarillos have seen massive growth, doubling in sales over 18 months, as they are not subject to plain packaging laws and offer a lower price point than cigarettes.
Rising taxes on tobacco have inadvertently fuelled a growth in the illegal, non-duty-paid market, which, while not legal sales, represents a significant portion of what is being consumed.
Despite the decline in volume, tobacco and accessories remain critical for wholesaler revenue. Wholesalers are actively adapting by dedicating more space to accessories and next-gen alternatives.
Paul Dufourne, Director of Commercial Operations at Philip Morris Limited (PML) in the UK and Ireland, comments: “As the traditional cigarette market is declining, demand for smoke-free alternatives is growing in the UK amongst adult nicotine users who would otherwise continue to use nicotine products. Adult nicotine users want more choice than ever before. They want a variety of options that meet every need, supporting in the switch away from cigarettes for good. We are proud to be an organisation that offers three premium smoke-free options – with two global leaders in their respective categories – to support adult smokers, who don’t want to quit nicotine, make that switch from cigarettes.
“At PML, we’re dedicated to offering smoke-free nicotine products to support adult smokers switch away from cigarettes for good. The best thing any adult smoker can do is quit nicotine entirely, but for those who choose not to quit nicotine, our smoke-free products are compelling alternatives thanks to the highest standards of product development, quality and product experience they deliver.”
Almost half of global revenue at Philip Morris now comes from smoke-free products. The company’s products are sold in 100 markets and are estimated to be used by over 41 million adults worldwide (Philip Morris International). IQOS stands as the world’s number 1 heat-not-burn device, and ZYN stands as the world’s No.1 nicotine pouch brand (PMI). The direction is clear: it’s about multiple alternative categories rising.
“At Philip Morris we pay close attention to what adult nicotine users are asking for. Right now, one of the clearest trends in nicotine products is dual/poly-use. Adult nicotine users are choosing more than one product type as part of their routine. Some might use heated tobacco or a vape when they’re at home, then switch to nicotine pouches when they’re on the go. That mix-and-match behaviour is shaping demand in stores,” adds Dufourne.
“That’s why products like IQOS and ZYN are so important to stock. Together, they cater to different needs. IQOS for those who still want a behavioural ritual close to smoking, and ZYN for those looking for discreet, convenient nicotine satisfaction. Stocking multiple categories allows retailers to meet customers at the different nicotine moments and maximise sales, rather than forcing them into one box.”
Independent research conducted by KAM on behalf of Philip Morris Limited further highlights that legal age nicotine users seek variety. Findings show that 68% of independent retailers believe that success will hinge on offering a varied product portfolio – one that includes a full range of e-cigarettes, heat-not-burn products, and oral nicotine pouches, rather than relying on a single category as they may have done previously with disposables.
“Adopting a multi-category product approach is critical if retailers are going to continue to meet different legal age nicotine users’ tastes and preferences amid changing legislation,” advises Dufourne. “Retailers have the opportunity to offer previous adult disposable vape users an alternative smoke-free option, preventing them from reverting back to cigarettes while also protecting their stores’ bottom line. However, it must be supported by comprehensive information and education of the benefits of switching from cigarettes to better alternatives.”
There is no “one-size-fits-all” approach, which is why having a portfolio of products that deliver on quality is an opportunity wholesalers can capitalise on. For example, in the UK, 73% of the 6 million adult smokers have tried vaping, but only 18% have quit cigarettes for good with vapes (ASH). That’s where PML’s multi-category approach plays a role. By offering a range of formats and price points – even within the same category – the company makes smoke-free products accessible to all legal-aged nicotine users who want to continue using nicotine, supporting them in making the switch from cigarettes.
Recognising that no single smoke-free product can cater to every smoker’s preference, embracing a multi-category approach becomes indispensable for those investing in their smoke-free portfolio. Building a range that reflects the diversity of adult nicotine users today is vital. That flexibility is what will protect businesses and keep them continually relevant as the market changes. PML’s multicategory range of alternatives is leading the charge in making this vision a reality.
“For both retailers and consumers, it starts with education. We make sure communication is clear, accurate and always directed at adult nicotine users. That means being upfront about the facts. For example, VEEV One emits around 99% lower levels of harmful chemicals than cigarettes. VEEV One is not risk-free, but it is a high-quality alternative to continuing to smoke. It also offers a premium alternative for legal-aged nicotine users that are looking for a closed-pod vape system after the disposable vape ban,” says Dufourne.
“Of course, nicotine is addictive, and the best thing any smoker can do is quit nicotine altogether. But for those who don’t want to, there needs to be credible alternatives on the table. That’s why we focus on scientifically substantiated, smoke-free products. Because if an alternative doesn’t feel satisfying, legal age nicotine users won’t make the switch, and the bigger goal of a smoke-free future becomes harder to achieve.”
IQOS is a leading smoke-free alternative for those directly transitioning from cigarettes, so much so that of the brand’s 33.8 million users (PMI) across the world, 22.4 million adult smokers have stopped burning tobacco entirely, heating it instead with IQOS (PMI). IQOS, the world’s number one heat-not-burn device (PMI), when used with TEREA sticks, provides real tobacco taste and satisfaction whilst emitting 95% less harmful chemicals than cigarettes. IQOS revenues overtook Marlboro in early 2024 (PMI), a real signal of where the market is heading. Smoke-free products make up more than 40% of PMI’s total revenues.
As a brand, IQOS owns the heat-not-burn category, generating 95% of volume sales in the UK. Nearly 50% of UK nicotine users recognise the IQOS brand, and this level of awareness has led to more adult smokers switching to IQOS ILUMA (PMI). The UK is at a pivotal moment in its journey towards a smoke-free future; a downward trend in demand for combustible tobacco indicates a steady, but continuing decline in smoking itself.
Adult consumers demand broad flavour choice, and TEREA, as part of the portfolio of products that are compatible with IQOS ILUMA, has responded by expanding its flavour portfolio with the launch of TEREA Pearls. The TEREA Pearls range features innovative capsule technology, enabling users to switch seamlessly to flavours like Blueberry and Strawberry & Basil, to Menthol with a single click. TEREA Silver drives even more choice for adult IQOS ILUMA users who prefer real tobacco taste and a smooth blend, complementing bestsellers like Amber, Sienna and Russet.
“ZYN is a great example of how we are addressing variety,” continues Dufourne. “It’s a premium option but priced competitively for retailers and consumers. Its sleek new pack design lifts it visually into the premium space, while the expanded choice of strengths and flavours – including Spearmint and Apple Mint – launched in June – speaks to what adult pouch users are actually asking for. In this way, we’re bridging the gap. We offer a premium experience, the reassurance of choice, and the accessibility that keeps responsible adoption growing.”
Nicotine pouches, including ZYN—the world’s No.1 nicotine pouch brand (PMI)—are largely made from nicotine, water, and flavours encased in a plant-based fibre pouch. ZYN does not contain tobacco leaf, and doesn’t produce vapour, offering a convenient smoke-free option.
In the UK, ZYN’s popularity has seen significant growth – ZYN nicotine pouches, in particular, saw a 497% increase in sales volume between December 2023 and December 2024.
ZYN pouches are discreet, convenient, and both budget- and travel-friendly. The number of UK adults reporting to have tried nicotine pouches doubled between 2020 to 2024 (Brose, Bunce, Cheeseman), positioning pouches as a smoke-free product to stock.
“Independent retailers are crucial to getting our brand in hand, upholding youth access prevention principles, supporting responsible communication of the benefits of smoke-free products and making our vision for a smoke-free future a reality at the local level,” adds Dufourne.
“A 2025 Philip Morris survey revealed that 82% of independent retailers felt it was either ‘likely’ or ‘strongly likely’ that the illicit market for disposable vapes may increase after the ban on disposable e-cigarettes. Illicit products can contain unknown ingredients and lack the quality and standards found with legitimate alternatives. Retailers concerned about stocking compliant products can rely on our field reps and the PMI OPEN platform for reliable guidance. This comprehensive support ensures retailers can navigate the market confidently and avoid illicit products.”
PMI OPEN is designed to support retailers stocking IQOS and the emerging portfolio. It provides valuable guidance, educational resources, and incentives, helping retailers and their staff transition smoothly to smoke-free alternatives.
Exclusively available to retailers enrolled in the PMI OPEN programme, the platform serves as the sole channel for retailers to order IQOS ILUMA I, the latest advancement in heating technology introduced in the UK last year. Retailers can also stock TEREA – the tobacco sticks used exclusively with the IQOS ILUMA device – alongside PML’s broader range of smoke-free products.
The latest IRI data shows the UK Cigar market to be worth just over £328m in annual sales which demonstrates value growth of 1.3% versus the same time last year. By far the largest segment within cigars is cigarillos, whose sales account for £157.4m of that total, followed by the miniature segment (£93.2m), the small segment (£52.2m) and the medium/large segment (£23.2m), with the rest (£2.2m) being made up of handmade cigar sales.
Prianka Jhingan, Head of Marketing at Scandinavian Tobacco Group UK, comments: “I think in general some shoppers will always be loyal and stick to their preferred brand, but there will certainly be many others who are shopping on price and looking for the cheapest brand available, because the search for value is often a motivating driver of purchase for many tobacco users. The cost-of-living crisis has certainly helped shape the category over the last few years meaning value brands and smaller pack sizes are often in demand. For example, our Moments Blue ten pack is an extremely popular choice in the VFM segment.”
Cigarillos are the current success story within cigars. This segment in the cigar category only really started six years ago with the arrival of these smaller, peppermint flavoured products, but sales are now worth £157.4m and they account for more than half of all cigars sold in volume terms. In the last couple of years distribution has improved and sales have really shot up for STG’s Signature Action cigarillo brand. In fact, its sales have gone up by almost 33% since the same time last year (IRI), with adult smokers appreciating the great flavour and cheaper price point, compared to other brands in the market.
Aside from Signature Action, other best-selling brands in the STG portfolio include Signature Blue, which is the fourth best-selling cigar overall and Moments Blue which is a popular brand in the value for money segment. Another ‘must-stock’ brand in the portfolio is Henri Wintermans Half Corona, which is by the far the UK’s best-selling medium / large cigar and is often given as gift on special occasions like birthdays, Father’s Day, or Christmas.
STG’s most recent launch was the expansion of the Signature Action menthol capsule range with the introduction of a new 17-pack format which have been available to retailers since August. This latest addition complements the existing two ten-pack offerings, providing consumers with greater choice and value, but features the same menthol flavour that has been synonymous with the brand since its launch back in 2020. With an RRP of £9.89, including a price-marked version, the new 17-pack delivers exceptional value to consumers, positioning it as the most competitively priced option in the market. It also offers an attractive margin for retailers, reinforcing STG UK’s commitment to supporting its trade partners with high-quality, high-demand products.
“With cigars, it’s more important to stock the right range rather than a big range, so we usually advise retailers to consider stocking the top two or three brands in each of the four main cigar segments, as the top ten biggest sellers overall account for well over 90% of total sales so there’s absolutely no point tying up your cashflow with slow-moving brands,” advises Jhingan.
“Aside from offering them products that meet current trends and consumers want, we regularly have meetings with all our wholesale partners, discussing the market dynamics and ensuring their product mix is what the consumers and retailers are asking for. We also support wholesaler to retail purchases of NPD through promotions and money off incentives. As we know, this can improve footfall into the wholesaler and potentially influence other purchases in depot, so a clear ‘win’ for both parties.”
Following a successful launch last year, Imperial Brands has reported that its value cigarette brand Paramount is now the UK’s fastest growing in the cigarette category (IMB).
Introduced in England, Scotland and Wales in October 2024, Paramount has quickly gained market share and has enjoyed heightened success in independent stores (EPOS data) achieving more than 5% (ITUK) market share, with customers already demonstrating brand loyalty by coming back time and time again to repurchase.
Combining exceptional value and quality, Paramount features premium, full-flavour Virginia sun-ripened tobacco, catering to the UK market where the majority of cigarettes feature Virginia blends (ITUK).
Paramount’s success reflects the growing demand for value options in the UK, with the value sector now representing nearly 37% of the UK cigarette market (ITUK).
Available in both full flavour king-size and super king-size formats, Paramount continues to be Imperial Brands’ best value product and has maintained a competitive RRP of £12.50, making it an attractive choice for adult smokers while still offering a strong margin for retailers.
Shirley Soccio, Head of Consumer Marketing UK & Ireland at Imperial Brands, comments: “While we were not surprised that Paramount has been well received in the UK market based on its success in continental Europe, its performance to date has surpassed expectations. It’s clear there is continued demand for value cigarette products which make no concessions when it comes to quality.
“There are many smokers across the UK and Northern Ireland who are receptive to trying new brands at the right price and quality – and it’s evident that having tried Paramount, many of them have decided that it’s the right brand for them and are staying with it.”
Having previously launched in Europe, Paramount also enjoyed a highly successful launch in Germany, where it established itself as the fastest-growing cigarette product on the market when it hit the shelves in the summer of 2023 (NielsenIQ).
ZONE, a new brand of high-quality nicotine pouches, has been launched by Imperial Brands in the UK.
Created to support retailers capitalise on the escalating consumer interest for nicotine pouches, while appealing to nicotine users who are looking for an alternative nicotine experience, which has the convenience and ability to be used anywhere.
The latest innovation, ZONE is the result of significant research and development from Imperial Brands, who are known for established tobacco brands such as Golden Virginia, Players and Embassy, as well as Rizla, and the blu vape brand.
Manufactured at Imperial owned factories in Europe, ZONE is the result of significant research and development using high-quality raw materials, to the highest standards. ZONE delivers fast-acting nicotine release and intense long-lasting flavour.
With nicotine pouches left in the mouth for up to 30 minutes, fresh flavours currently dominate the category. Research indicates that mint is the current preference for flavour accounting for 70% of purchases (EPOS data), but fruit flavours are gaining traction among customers.
The launch of ZONE will see five flavour options, including Sweet Mint, Cool Mint, Watermelon Ice, Juicy Peach and Berry Blast. As a growing category, 9-12mg strength products currently account for 43.4% of the nicotine pouch market (EPOS data) and ZONE will therefore be available in 10mg nicotine strength across four of its flavours. Cool Mint and Berry Blast will also be available in a higher, 11mg nicotine strength variety.
Each ZONE will contain 20 nicotine pouches in a new, slimmer format for better mouthfeel and discreetness, carrying an RRP of £6.50 each.
From the fresh breath experience of ZONE Cool Mint to the intense flavour delivery of ZONE Berry Blast, the flavour choices within the new ZONE range offer varied purchasing options for consumers and valuable sales opportunity for retailers.
Andrew Malm, UK Market Manager for Imperial Brands, comments: “With the category volume predicted to grow by 234% in the next 5 years (IBUK), the opportunity to develop an alternative high-quality nicotine solution for the UK market was significant.”
“ZONE is the result of extensive research and product development to ensure our high-quality nicotine product matches the expectations of consumers, as well as providing a great business building opportunity for the retail trade.”
With nicotine pouches proving popular with existing nicotine users for providing a discreet, effective, and affordable form of nicotine delivery, the category has significant growth potential in the UK. Latest figures reveal that 42% of nicotine pouch users (Impact) say they are going to use more nicotine pouches in the next six months.
Malm adds: “With the roll-out of ZONE in independents taking place over the next few weeks, we are providing retailers with an attractive and competitive offering for nicotine pouch customers who are seeking alternative choices on the gantry.
“Popular flavours and nicotine strengths underpin ZONE’s market appeal, and we are excited to launch this product which is produced in a state-of-the-art European manufacturing facility. With an intense, long-lasting flavour experience for users, we believe the ZONE range will be a fantastic addition to retailers’ current nicotine pouch offer.”
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