Cigarettes a Micro Economic Analysis

Cigarette Consumption “Short, snappy, easily attempted, easily completed or just as easily discarded before completion – the cigarette is the symbol of the machine age. ” New York Times, 1925 Annual cigarette consumption ICELAND NORWAY SWEDEN FINLAND per person 1998 or latest available data 2,500 and above RUSSIAN FED. ESTONIA UNITED KINGDOM IRELAND NETH. BELGIUM DENMARK 1,500 – 2,499 500 – 1,499 1 – 499 RUSSIAN FEDERATION GERMANY POLAND SLOVAKIA BELARUS UKRAINE CZECH REPUBLIC Global consumption of cigarettes has been rising steadily since manufactured cigarettes were introduced at the beginning of the 20th century.

While consumption is levelling off and even decreasing in some countries, worldwide more people are smoking, and smokers are smoking more cigarettes. The numbers of smokers will increase mainly due to expansion of the world’s population. By 2030 there will be at least another 2 billion people in the world. Even if prevalence rates fall, the absolute number of smokers will increase. The expected continuing decrease in male smoking prevalence will be offset by the increase in female smoking rates, especially in developing countries. The consumption of tobacco has reached the proportions of a global epidemic.

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Tobacco companies are cranking out cigarettes at the rate of five and a half trillion a year – nearly 1,000 cigarettes for every man, woman, and child on the planet. Cigarettes account for the largest share of manufactured tobacco products, 96 percent of total value sales. Asia, Australia and the Far East are by far the largest consumers (2,715 billion cigarettes), followed by the Americas (745 billion), Eastern Europe and Former Soviet Economies (631 billion) and Western Europe (606 billion). FRANCE SWITZ. AUSTRIA SLOVENIA CROATIA HUNGARY ROMANIA

YUGOSLAVIA BULGARIA REP. MOLDOVA no data C A N A D A SPAIN PORTUGAL ITALY GREECE KAZAKHSTAN UNITED STATES OF AMERICA MOROCCO ALGERIA TUNISIA MALTA AR AZER M TURKEY SYRIAN ARAB REPUBLIC UZBEKISTAN TURKMEN KYRGYZSTAN REP. KOREA JAPAN C H I N A TUNISIA MOROCCO BAHAMAS ISRAEL WEST BANK & GAZA IRAQ JORDAN ISL. REP. IRAN KUWAIT AFGHANISTAN ALGERIA DOMINICAN REPUBLIC MEXICO CUBA JAMAICA BELIZE HONDURAS NICARAGUA COSTA RICA PANAMA HAITI LIBYAN ARAB JAMAHIRIYA PAKISTAN BAHRAIN NEPAL EGYPT SAUDI ARABIA BANGLADESH MAURITANIA INDIA LAO PDR THAILAND Hong Kong SAR VIET NAM

China One in three cigarettes smoked in the world today are smoked in China. GUYANA SURINAME SIERRA LEONE COTE D’IVOIRE LIBERIA GHANA TOGO China 1,643 billion GUATEMALA EL SALVADOR MALI BARBADOS TRINIDAD & TOBAGO SENEGAL GAMBIA GUINEA-BISSAU BURKINA FASO CHAD NIGERIA CAR CAMEROON SUDAN PHILIPPINES VENEZUELA COLOMBIA ETHIOPIA UGANDA KENYA MALDIVES SRI LANKA MALAYSIA SINGAPORE ECUADOR GABON CONGO DEM. REP. CONGO R B UNITED REP. TANZANIA I N D O N E S I A BRAZIL ANGOLA ZAMBIA MALAWI Top 5 countries Billions of cigarettes consumed 1998 PERU BOLIVIA MADAGASCAR ZIMBABWE MAURITIUS

India Seven bidis are sold for every one cigarette. SOLOMON ISLANDS CHILE PARAGUAY over SOUTH AFRICA MOZAMBIQUE SAMOA AUSTRALIA FIJI USA 451 billion URUGUAY ARGENTINA cigarettes are smoked worldwide billion 5,419 5,500 Rising numbers 4,388 Average number of manufactured cigarettes smoked per man per day in China 1996 1 4 10 15 NEW ZEALAND everyday Japan 328 billion 3,112 Russia 258 billion Global cigarette consumption Billions of sticks 1880–2000 1,000 600 10 20 50 100 300 2,150 1,686 Indonesia 215 billion 1952 1972 1950 1960 1970 1980 1990 2000 1992 1996 30 1880 1890 1900 1910 1920 1930 1940 31

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