Die Tabakindustrie punktet bei jungen Konsumenten. Investoren reiben sich die Hände

The tobacco industry is attracting young consumers, as investors cheerfully overlook the addictive nature of nicotine products. Swiss cigarette packs now feature yellow warning text instead of the traditional white, emphasizing "Smoking is deadly – stop now." Despite this, the market remains unchanged, with no alteration to the vast selection of cigarettes found in every corner store.

The Swiss market, like many others, still generates a staggering $145 billion annually in sales, and globally, 1.2 billion people smoke, making up nearly one in five adults. While local manufacturers exist, four major players control nearly 80% of the world's cigarette sales, with the Chinese giant China National Tobacco Corporation holding 47% of the market.

The large cigarette market has remained unaltered, but tobacco companies have discovered a more lucrative market in electronic cigarettes, or vapes, and nicotine pouches. These products, which resemble gum and are placed between the upper lip and gums, are particularly popular among younger consumers. Despite their growing popularity, most financial analysts remain bullish on tobacco companies, recommending investors buy their stocks.

This is due to the belief that while traditional cigarettes still generate profits, there is a more lucrative segment in the sale of electronic cigarettes and nicotine pouches. These newer products are less addictive than traditional cigarettes, and manufacturers can claim they are less harmful to health. However, studies on the long-term health effects of these products are still lacking, and many were funded and commissioned by the tobacco industry itself.

Despite these concerns, governments often treat these products more favorably than traditional tobacco, leading to lower taxes and higher profit margins. Major tobacco companies like PMI and BAT have successfully marketed their newer products away from the negative stigma associated with cigarettes. They have even opened standalone shops in shopping centers, reminiscent of watch or fashion boutiques rather than traditional tobacco stores.

This marketing strategy appeals particularly in major cities, where purchasing power is highest. Smoking a cigarette is increasingly seen as reprehensible, but consuming electronic cigarettes or nicotine pouches is not. Philip Morris, a major player in this shift, generated 42% of its revenue in the second quarter from electronic cigarettes and nicotine pouches, a 14% increase compared to the previous year, while cigarette sales increased by only 10% due to higher prices.

British American Tobacco saw an 18% increase in revenue from these new products. Both companies aim to shift over two-thirds of their revenue to these products by 2030.