Refugee Influx Set to Boost Germany's Shrinking Tobacco Industry
- Arrivals from Syria could help sales at Imperial Tobacco, BAT
- Emigrants may also boost demand for illicit cigarettes
A man smokes cigarette as he arrives with other refugees on the shores of the Greek island of Lesbos. The country expects at least 800,000 refugees to enter its borders this year, the biggest movement of displaced people Europe has seen since World War II.
Photographer: Matej Divizna/Getty ImagesGermany’s refugee influx may add 810 million cigarettes to the country’s annual consumption this year, a rare increase in a market that has shrunk the past decade.
The country expects at least 800,000 refugees to enter its borders this year, the biggest movement of displaced people Europe has seen since World War II. Many of the refugees will be fleeing war-torn Syria, where 48 percent of men smoke, according to the World Health Organization. The additional cigarette consumption equates to a 1 percent increase in Europe’s largest tobacco market, according to Morningstar analyst Philip Gorham, as demographics in developed regions turn in the industry’s favor for once.