France Case Study

Between 2011 and 2024, France significantly increased tobacco taxes, raising prices by 198% for fine-cut tobacco (FCT) and 103% for factory-made cigarettes (FMC). This reduced the price gap between the two, diminishing FCT’s role as a cheaper alternative. As a result, while domestic tobacco consumption declined, the market share of non-domestic FMC increased, now accounting for nearly half of the FMC market. From 2019 to 2024, domestic declines were offset by non-domestic use, resulting in overall FMC consumption remaining unchanged. Although tax revenues initially rose, they have declined since 2020, indicating that current policies may be encouraging cross-border purchasing and undermining both revenue and public health objectives.