Pricing of RRPs does not always provide smokers with an economic incentive to transition away from HRPs

  • In a comparison of heated tobacco (the most prevalent RRP in 2021 in per stick equivalent terms) and cigarettes (the most prevalent HRP in 2021 in per stick equivalent terms), on average the retail price of a heated tobacco stick was 95% of the retail price of a cigarette stick (Figure 30).
  • Across the same countries, the average total tax burden was 28% lower for heated tobacco than for cigarettes. The average net price (exclusive of tax) is therefore higher for heated tobacco than for cigarettes.
  • Heated tobacco products are currently price competitive with premium-priced cigarettes, but when the average retail price of cigarettes (across all price tiers) is taken into account, the price incentive for current cigarette smokers to switch to heated tobacco is reduced.

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