British American Tobacco (BAT) is facing growing challenges in the United States due to the proliferation of illicit e-cigarettes, which is significantly impacting its financial performance. In 2024, BAT's sales of vaping products in the United States declined by 0,8%, as price increases did not offset declining volumes, indicating eroding market share due to competition from unauthorized manufacturers.
Meanwhile, traditional cigarette volumes fell 10,1% in the United States, a trend attributed to lower consumer spending and an increase in the low-cost segment, a market in which BAT has a smaller presence. For 2025, the company anticipates adjusted operating profit growth of between 1,5% and 2,5%.
This issue is not isolated. Other industry players, such as Altria, have also reported an increase in illicit nicotine products, including disposable e-cigarettes from China, which are negatively impacting their sales of traditional cigarettes.
The proliferation of these illicit products poses major public health and regulatory challenges, requiring concerted action by authorities to protect consumers and ensure fair competition in the market.
