Top Tobacco Brands Take a Rough Dip
The world’s brand valuation guru Brand Finance just dropped its latest list, and guess what? The combined worth of the top ten tobacco brands has slipped by 6 %. Eight of the giants saw their value shrink in 2023—pretty wild for a sector that usually stands pretty still.
Why the Shake‑Ups?
On the surface, it looks like a bit of a shift toward smokeless alternatives—think IQOS and other “no‑smoke” goodies. Consumer tastes are changing, and regulators are tightening the reins, so those who resist are now feeling the squeeze.
Still, the classic tobacco names stick around at the top. Loyal fans and clever pricing strategies keep them afloat.
- IQOS rockets up +8 % to a hefty $3.5 billion in brand value. It’s the fastest‑growing name, thanks to more customers hopping on the smoke‑free train.
- Philip Morris says smoke‑free sales hit almost 40 % of total net revenues in Q4 2023— and IQOS has now dethroned Marlboro in revenue terms.
- Marlboro remains the crowd‑pleaser, dropping only 6 % to $32.6 billion, yet still the world’s most valuable brand for a decade‑long streak.
- In a massive gap, Marlboro’s value is more than five times that of the runner‑up.
Bright Spots & Tiny Downswings
Altria and Philip Morris are eating a little less with combustible sales—lower shipment volumes and higher promo spend are the culprits. Even when the brand value dips, they keep the fan‑base glued with savvy promos and price tweaks (Altria even nudged prices up 17 ¢ per pack in the US).
Legacy & Loan Mart (L&M) rises to #2 on the list, after a mere 2 % decline. L&M’s Brand Strength Index sits on a solid 77/100.
Pall Mall slides down to #3, falling 9 % to $5.9 billion. L&M’s latest climb is all thanks to a downturn in its own shipment numbers.
Richard Haigh, the top dog at Brand Finance, explains the trend: “Marlboro still reigns supreme, but the industry is evolving fast. Recognition of shifting preferences and bold moves like BAT’s big write‑down are essential for staying relevant.”
Steady & Steady, Those Are The Names
The Chesterfield brand’s worth holds steady, moving up one rank to #7 thanks to a solid 8 % growth last quarter and 14 % through the year in shipments.
US‑Powered Dominance Afloat
The rankings highlight a staggering 92 % of total brand value coming from the US—$61 billion in total. Only two names outside the US beat the list: the UK’s Rothmans down 8 % to $2.9 billion, and Indonesia’s Sampoerna down 12 % to $2.7 billion.
Long story short: tobacco is taking a bite (not a bite‑but‑they’re still big), but the market is pivoting toward smoke‑free options. Stay on it—if you’re in the business or just curious, the shift is clear and loud.
