Germany’s Cigarette Tax Volume Shows Slight Year-on-Year Increase but Long-Term Decline
Germany taxed 66.4 billion cigarettes in 2025, a 0.2% increase compared to 2024 (approximately +100 million cigarettes). However, this figure represents a dramatic long-term decline when compared to 1991, when 146.5 billion cigarettes were taxed, a reduction of more than half.
Key Points at a Glance
- Germany taxed 66.4 billion cigarettes in 2025, up 0.2% year-on-year.
- Compared to 1991, taxed cigarette volumes fell from 146.5 billion to 66.4 billion;
- Taxed fine-cut tobacco totaled 24,864 tons (down 1.2% year-on-year);
- Cigars and cigarillos amounted to 2.1 billion units (down 6.6% year-on-year);
- Taxed tobacco substitutes, including vapes and vaping liquids, reached 1.5 million liters (up 18.2% year-on-year).
Long-Term Consumption Trends Highlight Sharp Decline
According to data released by the German Federal Statistical Office (Destatis) on January 26, 2026, Germany’s cigarette consumption has fallen significantly over the past three decades. In 1991, 146.5 billion cigarettes were taxed, while by 2025, this figure had dropped by more than 50%. On a per capita basis, cigarette consumption declined from 1,831 cigarettes per person in 1991 to 795 cigarettes in 2025.
Fine-Cut Tobacco, Cigars, and Shisha See Continued Declines
Beyond cigarettes, several traditional tobacco categories recorded year-on-year decreases in 2025. Taxed fine-cut tobacco for rolling amounted to approximately 24,800 tons, down 1.2%. Cigars and cigarillos totaled 2.1 billion units, representing a 6.6% decline. Shisha tobacco taxation reached 1,162 tons, a decrease of 8.8%.
Pipe Tobacco and Tobacco Substitutes Move in Opposite Directions
In contrast to most combustible tobacco products, traditional pipe tobacco recorded modest growth, with 323 tons taxed in 2025, an increase of 2.9% year-on-year. Meanwhile, tobacco substitutes such as vapes and vaping liquids continued to expand rapidly, with 1.5 million liters taxed, an 18.2% increase compared to the previous year.
Regulatory Changes and Tax Classification Since 2022
Destatis noted that shisha tobacco and heated tobacco products have been subject to separate tax rates since 2022. Vape liquids were officially included in tobacco tax statistics for the first time in July 2022, meaning longer-term comparisons are not available. The current Tobacco Tax Law specifies differentiated tax rate arrangements for various tobacco and nicotine products through 2027.
Follow us to get more updates: @zumo.official
