How Big Is Canada's Tobacco Market? Shares and Sales
Key takeaways
Canadian tobacco sales are concentrated among four key manufacturers (over 95 percent of sales). 16.2 billion domestic cigarettes were sold in 2023, down almost 42 percent between 2013 and 2022. Adult tobacco use fell from 29% in 2001 to 13% in 2024, and Health Canada estimates illegal products at 10 to 20% of the market.
The Canadian tobacco market is small in number of suppliers and shrinking in volume. These are the figures the federal government itself publishes.
Key figures
| Measure | Figure | Year |
|---|---|---|
| Share of sales held by four key manufacturers | Over 95% | 2025 report |
| Domestic cigarettes sold | 16.2 billion | 2023 |
| Cigarettes as a share of the tobacco market | 94% | 2023 |
| Fall in cigarettes sold | Almost 42% | 2013 to 2022 |
| Industry-reported revenue in Canada | About $4.2 billion | 2023 |
| Retailers able to sell tobacco | Over 22,000 | 2023 |
| Cigarette brands on offer | Over 100 | 2025 report |
| Canadians using tobacco | 29% then 13% | 2001, 2024 |
| Estimated illegal share of the market | 10 to 20% | Health Canada estimate |
Sources: Health Canada’s third legislative review discussion paper (June 2025), the Tobacco Charges announcement (March 2025) and the Canada Tobacco Strategy results page.
Reading the numbers
Few makers, many brands. The discussion paper describes a “concentrated” market in which four key manufacturers account for over 95 percent of sales. A few small importers supply the remainder. The second legislative review adds that the industry uses a price segmentation strategy, with a lower-priced value brand alongside premium ones.
Falling volume. Cigarette sales dropped almost 42 percent from 2013 to 2022, and two-thirds of that decline came after 2018, the year the Tobacco and Vaping Products Act replaced the Tobacco Act. The second review says declines occurred across all major cigarette manufacturers. Health Canada also reports that overall tobacco use fell from 29% of Canadians in 2001 to 13% in 2024, against a federal target of under 5% by 2035.
Revenue. Industry-reported revenue in Canada was about $4.2 billion in 2023, the figure Health Canada gave when it announced the Tobacco Charges Regulations. We did not find an official year-by-year revenue series, so we do not chart a trend.
Retail is thinning. Over 95 percent of tobacco is sold in person through gas and convenience stores. The number of those stores fell 17.5 percent between 2017 and 2023, though the country still had over 22,000 places licensed to sell tobacco.
What the figures leave out
These numbers describe the legal, stamped market. Health Canada states that illegal tobacco products represent an estimated 10 to 20% of Canada’s tobacco market. Other estimates, including some commissioned by manufacturers, are higher and disputed; the contraband tobacco overview sets them side by side. Prices and tax per pack are on our tobacco taxation pages.
Who is behind the market
For how manufacturers are charged by market share and why we do not publish company-by-company figures, see who makes cigarettes in Canada. The wider hub, tobacco industry in Canada, links to litigation, lobbying and environmental guides.
Frequently asked questions
How many cigarettes are sold in Canada each year?
Health Canada reports 16.2 billion domestic cigarettes sold in 2023, and says sales fell almost 42 percent between 2013 and 2022.
Where are tobacco products sold?
Over 95 percent are sold in person through gas and convenience stores. In 2023 Canada had over 22,000 retailers where tobacco could be sold, and the number of gas and convenience stores fell 17.5 percent between 2017 and 2023.
What share of the market is illegal?
Health Canada states an estimated 10 to 20% of the tobacco market is illegal products. Estimates differ by method and date, which is covered on the contraband tobacco page.
Sources
- The Third Legislative Review of the Tobacco and Vaping Products Act: discussion paper (June 2025) — Health Canada. Accessed October 27, 2026.
- Report of the Second Legislative Review of the Tobacco and Vaping Products Act — Health Canada. Accessed October 27, 2026.
- Delivering results: advancing the Canada Tobacco Strategy — Health Canada. Accessed October 27, 2026.
- Government of Canada announces two initiatives to combat tobacco-related harms (7 March 2025) — Health Canada. Accessed October 27, 2026.