Despite global anti-smoking efforts, cigarette sales in China are booming, driven by the largely unknown yet massive China National Tobacco Corporation, or China Tobacco. This state-owned company has become the world’s largest cigarette producer and holds a near-monopoly in China’s tobacco market.
Retail cigarette sales in China have risen steadily over the past four years, reaching 2.44 trillion sticks in 2023, with forecasts suggesting a further rise to 2.48 trillion by 2028, according to Euromonitor. This growth is fueled by increasing demand for slim and flavored cigarettes, while global cigarette sales have dropped 2.7% in recent years.
With over 300 million smokers, China makes up about a third of the world’s smoking population, and the Chinese government’s efforts to reduce smoking have had limited impact. China Tobacco generated approximately $210 billion in revenue in 2023, contributing an estimated 12% to China’s tax revenue.
China Tobacco’s unique position stems from its dual role as both industry and regulatory authority, complicating efforts for stricter controls. The company was founded in 1982 to centralize the tobacco industry, and by 2014, it employed over half a million people and controlled vast networks of provincial bureaus and cigarette enterprises.
The economic importance of tobacco taxes and its role in rural livelihoods remain key barriers to regulation, experts note, highlighting a fundamental conflict between public health goals and economic reliance on tobacco.
