In France, the price of cigarettes continues to rise. Every year, new tax measures add to smokers’ bills. While the stated aim is to reduce tobacco consumption and protect public health, the reality is more complex. Do higher prices really have an impact on smoking cessation? Or is it primarily a tax strategy?
In this article, we analyze the evolution of tobacco prices in France, their effect on consumption and smoking behavior, and the economic consequences for tobacconists and the tobacco industry. We will also examine alternatives and complementary measures that could have a more significant impact on smoking.
Tobacco price trends in France
For several years now, France has adopted a policy of raising tobacco prices in order to combat smoking. The price of a pack of cigarettes has risen exponentially as a result of successive tax increases. Today, a pack costs an average of €10.50 to €13.50, and this increase is set to continue over the coming years.
Tobacco taxation: first and foremost a fiscal tool
Tobacco taxation is mainly based on excise duty, a tax proportional to the price of the pack, and VAT. In France, over 80% of the price of a packet is made up of taxes. This policy is designed to discourage consumption, but it is also a considerable source of revenue for the state. In 2022, tobacco taxes brought in over 15 billion euros.
Impact on smokers and households
The increase in tobacco prices is having the greatest impact on smokers on modest incomes. They have to choose between smoking and other essential expenses such as food or housing. For some, the rise in prices is an incentive to quit, while others turn to alternative solutions, such as the parallel market or buying abroad.Does the rise in tobacco prices really reduce consumption?
One of the main justifications for price hikes is their deterrent effect on tobacco consumption. But what is really the case?
Contrasting results for smoking cessation
Studies show that every 10% increase in the price of tobacco leads to a 4% drop in consumption among adults, and up to 9% among young people. These figures suggest that price increases are effective in limiting smoking initiation, but their impact on smoking cessation is more uncertain.
On the one hand, some smokers take advantage of these increases to try to quit smoking. On the other, many are simply adapting their behavior by consuming differently:
- By reducing their daily consumption
- Buying cheaper products (rolling tobacco, electronic cigarettes)
- By turning to the illegal market
The parallel market boom
With the rise in tobacco prices in France, cross-border purchases are exploding. In neighboring countries such as Spain, Belgium and Luxembourg, cigarettes are up to 50% cheaper. Many smokers therefore choose to buy their cigarettes abroad or on the black market, which cancels out the effect of price rises on overall consumption.
Economic consequences for tobacconists and the tobacco industry
Impact on sales and employment
Tobacco sales through the official distribution network have fallen in recent years due to price hikes. Many tobacconists are seeing their sales fall, directly threatening employment in the sector. Some tobacconists have diversified their activities (selling vaping products, parcel relays, etc.) to compensate for this decline.
A tax system that doesn’t put the brakes on the tobacco industry
Despite high taxes, the tobacco industry continues to rake in billions of euros in profits. Indeed, it is adapting by offering alternative products such as electronic cigarettes, heated tobaccos and new modes of consumption that are not yet as heavily taxed.
What additional measures are needed to have a real impact on smoking cessation?
While raising tobacco prices has a reducing effect on consumption, it is not enough on its own to encourage people to stop smoking for good. Several measures could reinforce its impact:
Strengthening withdrawal support systems
Smokers need support to quit effectively. This involves :
- Coverage of nicotine substitutes
- Improved reimbursement for cessation consultations
- Promoting new solutions such as laser acupuncture, which has a high success rate.
Stepping up the fight against the black market
To ensure that price rises have a real impact, it is essential to strengthen the regulation of the parallel market. This includes :
- Stricter border controls
- Increased penalties for tobacco traffickers
- Europe-wide price harmonization
Awareness campaigns and education
Education plays a key role in reducing smoking. Hard-hitting campaigns and better access to information on the dangers of smoking can have a significant impact, especially among young people.
Conclusion
Raising tobacco prices is an effective tool for reducing consumption, but it is not enough on its own to encourage people to stop smoking for good. To maximize its impact, it must be accompanied by measures to support cessation, a reinforced fight against the black market and a more ambitious education policy. The ultimate aim remains to protect public health while limiting the perverse effects of taxation on smokers and the economy.
