1 of 2
A low-tar cigarette brand from China Tobacco (Jiang Su) Industrial Corporation.
2 of 2
Low-tar cigarettes are popular among consumers.
The 618 Mid-Year Shopping Festival is a major commercial event in China in the first half of each year, reflecting shifts in consumer trends. The “618 Consumer Insights Report 2024,” released by Zhongxin Jingwei Research Institute, China International E-commerce Center (CIECC), and Inspur Zhuoshu on June 19th, reveals that modern consumers are focusing more on finding products that suit their needs rather than blindly following trends. As awareness of health and environmental issues grows, product upgrades related to these concerns are driving consumption upgrades.
This shift in consumer trends is evident in the tobacco industry, where low-tar and reduced-risk cigarettes are increasingly gaining popularity.
The development way of low-tar cigarettes
As early as 2011, the State Tobacco Monopoly Administration of China (STMA) advocated for the tobacco industry to focus on low-tar and high-end cigarette brands. This meant that while high-end products either reduced tar or introduced new low-tar options, consumer preferences remained crucial. However, due to technological limitations at the time, the popularity of low-tar cigarettes was driven more by industry demand than consumer desire. Low-tar cigarettes often lacked sufficient aroma and satisfaction, and the tar levels—except for the 5 mg, 3 mg, and 1 mg labels—did not provide a quality experience, often resulting in poor satisfaction. This discrepancy between low tar and consumer satisfaction suppressed willingness to adopt these products.
With continuous technological advancements, new low-tar cigarettes now offer a more comfortable and satisfying experience. In particular, slim and medium-sized low-tar cigarettes have found success in the market.
After the Covid-19 pandemic, low-tar and reduced-harm cigarettes have regained consumers’ attention, evolving from industry concerns to real and explicit market demands.
Low-tar cigarettes are emerging
From a market perspective, brands like Yellow Crane Tower, Zhongnanhai, and Seven Wolves have been pivotal in advancing 5mg/6mg low-tar cigarettes, achieving remarkable market success. For example, Yellow Crane Tower, with each stick containing 6mg of tar or less, is priced at RMB300 per carton or more. Seven Wolves, also with 6mg of tar or less, is priced at RMB150 per carton or more, while Zhongnanhai, with the same tar level, is priced at RMB100 per carton or more.
Additionally, policy support has created a favorable market environment for the widespread adoption of 5mg/6mg low-tar cigarettes. This support will likely ensure that these low-tar cigarettes remain central to the “upgrading and updating” of the tobacco market for the foreseeable future.
Low-tar cigarettes are popular among consumers.
Many brands, including Yunyan, Liqun, Mount Huangshan, Seven Wolf, Furong Wang, and Tianzi, have introduced 5mg/6mg low-tar products. These brands often emphasize health by focusing on “comfort” and “just right taste” in their marketing.
The emergence of low-tar cigarettes marks a key shift for the industry, transitioning from technological leadership to market leadership.
Recently, the 3mg tar level has emerged as a new standard. For example, the “Nanjing (3mg)” ultra-low-tar cigarette, supported by advanced technologies, offers consumers an exceptional combination of ultra-low tar and ultra-high quality. This innovation balances high-end smoking preferences with health considerations, aligning perfectly with current trends in premium consumption.
Meanwhile, these low-tar cigarettes have invested significantly in packaging design and branding, attracting younger consumers with their stylish and premium image.
The development potential of low-tar cigarettes
Since 2017, low-tar products in the Chinese cigarette market have exhibited a trend of sales growth. In 2022, the sales volume of low-tar cigarettes surpassed 10 million cases for the first time. This year continues the positive trend of recent years, maintaining a near double-digit year-on-year growth rate. Although 8mg per stick products still dominate the market, 6mg per stick products have shown even stronger growth, exceeding 2 million cases in 2023.
Of course, current low-tar cigarette products still face some challenges, primarily due to limited consumer awareness and the need to improve market acceptance. However, from a long-term perspective, this also suggests that low-tar cigarettes have significant development potential. With ongoing technological advancements and gradual cost reductions, the cost-effectiveness of low-tar cigarettes will improve, further boosting their market popularity.
Low-tar cigarettes are poised to lead a new consumption trend in the Chinese cigarette market through technological and product innovation. They are expected to drive the popularity of medium and slim cigarettes while continuously attracting high-end consumers. As consumer preferences evolve, the definition of quality shifts accordingly. In different eras, consumers have varied expectations of quality, and today, cigarettes as a consumer product focus on the sensory experience. Modern consumers seek a balance of ease, comfort, and satisfaction in their smoking experience. Low-tar cigarettes that meet these criteria are gaining popularity, reflecting a return to quality amid the trend of rational consumption.