The Federal Trade Commission recently issued its Cigarette Report and Smokeless Tobacco Report summarizing 2016 data about the tobacco industry. Important observations from the Cigarette Report include:
- The number of cigarettes that the largest cigarette companies in the United States sold to wholesalers and retailers nationwide declined from 244.2 billion in 2015 to 240.5 billion in 2016;
- The amount spent on cigarette advertising and promotion increased from $8.30 billion in 2015 to $8.71 billion in 2016; and
- Price discounts paid to cigarette retailers ($5.81 billion) and wholesalers ($1.44 billion) were the two largest expenditure categories in 2016. Combined spending on price discounts increased from $6.95 billion in 2015 to $7.25 billion in 2016, accounting for 83.2 percent of industry spending.