The snus tax was reduced on 1 November. But what about the prices in the shops? It turned out to be very different. Although many manufacturers lowered their purchase price immediately, others have chosen to keep the previous price despite the tax cut.
At the same time, the tax cut has increased interest in traditional snus.
17 per cent. This is how much the average price of portion snus fell at the turn of October/November in connection with the promised tax cut. This is according to a survey conducted by Vejpkollen together with Sweden's largest retailer Snusbolaget. This is slightly less than the 20% tax cut that came into force on 1 November. The explanation lies in the fact that some manufacturers have chosen to reduce prices straight away, while others have chosen not to do so at all
"Clearly, there is a risk that the tax cut will be used to increase profits for manufacturers instead of benefiting consumers. At the same time, it is not straightforward when it comes to tax rates on a product category as varied as snus" says Markus Lindblad, Head of Communications at Haypp group, which runs the retailer Snusbolaget, to Vejpkollen.
Difference between loose and portion
The biggest price cuts were for portioned snus. The average reduction was 17 per cent for original portion snus and 15 per cent for white portions. For loose snus, the reduction was only 11 per cent.
"When it comes to portioned snus, there is a huge difference between different product types. Small portions have a bigger reduction than larger portions - but that doesn't mean that the price per can is different in the end" explains Markus Lindblad.
Harm minimisation in tobacco policy
One of the motivations behind the government's tax policy on nicotine is that encourage nicotine users to choose snus over cigarettes. In more technical terms, this is called harm minimisation. For consumers, it means that snus becomes cheaper, while cigarettes become more expensive. This is based on the reasoning that using nicotine via cigarette smoke is significantly more harmful than using nicotine via snus and other smokeless methods.
Interest in brown snus increased
Snus is certainly a product that has been declining in terms of market share in recent years. But while interest in traditional snus is declining, interest in new products such as nicotine pouches and vapes is increasing. This is particularly noticeable for companies involved in online sales of a wide range of nicotine products. Mr Stefan Bensmo is the founder and communications director of Snuset Group, which runs the website snuset.se. The company's media platform "Snuskuriren" publishes current reports on interest in smokeless nicotine in Sweden. The focus is on comparing the number of Google searches for each product, and there was a clear trend when the snus tax was under discussion before the reduction.
"Traffic to the website increased significantly when the snus tax was reduced and we have seen a clear increase in interest in traditional snus. Our internal data shows a change in consumer behaviour where more people who previously used other nicotine products, such as vape, are now looking for and buying snus," he told Vejpkollen.
Key to quitting smoking
According to Mr Stefan Bensmo interest in the related issues of snus and smoking also increased. Not least with regard to snus as one of the alternatives to cigarettes for smoking cessation.
"Yes, there is also a clear movement online, with more discussions and searches around 'stop smoking, start snus', suggesting a shift towards alternative products. Although the number of cans per purchase has not changed significantly, we see a general increase in interest." he tells Vejpkollen.
Companies cut prices differently
However, while interest in snus has increased since the reduction of the snus tax, the actual price reduction of the products has been very different. Markus Lindblad at Haypp group notes that not everyone has acted in the same way when it comes to purchase prices.
"We are recognised as a market leader and we know that many people are watching our prices. That's why we went out a week before the tax cut and gave manufacturers a guide on how prices needed to be adjusted to reflect the cut." he tells Vejpkollen.
Some did not sink at all
But when the going got tough, it turned out that some manufacturers did not cut prices at all.
"The vast majority have reduced, but to very different degrees. Some did it by 20 per cent straight away, while others have calculated how the tax affects the product types based on weight and then spread the reduction over the entire range. A few manufacturers didn't realise the reduction at all and instead raised the price, which is surprising, while others chose to keep the same price."
Expecting a tax increase next year
According to Markus Lindblad However, it is too early to say what the tax cut will look like in the long run. Not least because the tax actually goes up again at the end of the year, in relation to the annual increase in the consumer price index. According to the impact assessment carried out by the government ahead of the legislative change on 1 November, the total tax cut from 2025 is likely to be closer to 16% - not 20%.
"I know that one of the larger manufacturers has chosen not to reduce the price now, but will adjust at the turn of the year instead. That's one way of doing it, although it may not look great for these particular brands compared to others right now." says Markus Lindblad.
"Important marker"
Sweden's largest manufacturer of snus, Swedish Match, which was recently bought by tobacco giant Philip Morris International, chose to reduce prices by the same amount as the reduced snuff tax outright. According to Anna Hällöv, Head of Sweden for Swedish Match, it is important that companies in the industry act responsibly.
"For us, this labelling is very important. We want smokers to switch to smoke-free products, if they cannot quit completely. This is and has been Swedish Match and PMI's goal for many years now. But this is not just about lowering the tax on snus, but about raising it for cigarettes at the same time. This shows a clear harm-minimising attitude from the political side. It is important that we, as market players, show that we are on board and pulling in the same direction." says Anna Hällöv to Vejpkollen.
"A public health measure"
She is joined by Mr Stefan Bensmo on the Snuset Group.
"The reduction in snus tax reinforces Sweden's successful policy of focusing on harm minimisation, rather than on prohibition-oriented poster policies. Sweden's unique approach to nicotine products continues to show results, not least in the fact that people moving to Sweden often switch from cigarettes to snus. This reflects a long tradition of offering less harmful alternatives to smoking. The tax cut also helps to widen the price gap between cigarettes and both traditional and white snus, which can positively influence consumer choice. The policy behind the decision thus appears to be both a public health measure and a strategy to strengthen a proven Swedish model." he tells Vejpkollen.
Smokers switch to smoke-free
As Vejpkollen previously reported according to CAN's latest survey nicotine use has neither increased nor decreased since 2019. The use of smokeless products such as e-cigarettes and white snus has certainly increased in some groups, while smoking has decreased significantly across the population. CAN's figures are confirmed by data from the industry, not least from Haypp group," says Markus Lindblad.
"According to the data that Snusbolaget collects on its customers, it is clear that the vast majority of people who buy smokeless nicotine products in adulthood are either smokers or former smokers. Our analysis is that there has been a primary shift between different products in the nicotine market and that cigarette use is declining in favour of smokeless nicotine use." says Markus Lindblad.
Important for businesses to keep up
Markus Lindblad and the Haypp Group, however, urge manufacturers to guard against the current situation.
"As retailers, we can do our part to ensure that products are available and that the quality of the products we offer is of a high standard. But it's always up to manufacturers to keep prices at a good level, and to 'read the room' when it comes to tax cuts like this one," says Markus Lindblad.
Large differences in pricing
Vejpkollen has taken note of the total list of snus brands available on Snusbolaget. The list shows the purchase prices of different snus products before and after the tax cut on 1 November.
How the prices of your snus changed in 2024 (Snus Company's simplified list):
| loose snuff | Price reduction per kilo | Equivalent to tax cut |
| One Loose | -41 | 15% |
| General Loose | -49 | 18% |
| Granite Loose | 0 | 0% |
| Coarse Loose | -41 | 15% |
| Göteborgs Rapé loose snuff | -41 | 15% |
| Knox Loose | -22 | 8% |
| Crown Loose | -49 | 18% |
| Mustang loose snuff | -41 | 15% |
| Skruf No.33 Loose Strong | -22 | 8% |
| Småland Loose | -22 | 10% |
| Original portion | Price reduction per kilo | Equivalent to tax cut |
| Ettan Portion | -24 | 15% |
| General Extra Strong Portion | -24 | 17% |
| General Portion | -24 | 15% |
| General Mini Portion | -24 | 35% |
| Granite Portion | 0 | 0% |
| Coarse Portion | -24 | 15% |
| Calibre Original Portion | -24 | 20% |
| Calibre + Original portion snuff | -24 | 20% |
| Knox Portion | -22 | 15% |
| Knox Stark Portion | -22 | 15% |
| Knox Xtra Strong Portion | -22 | 15% |
| Kronan Strong Portion | -24 | 17% |
| Crown Portion | -24 | 17% |
| Ld Salmiak Portion | -19 | 16% |
| Ld 30 Original Portion | -19 | 11% |
| Ld Original Portion | -19 | 16% |
| Ld Original Stark Portion | -19 | 16% |
| Ld Salmiak Portion Strong | -19 | 16% |
| Ld Whiskey Original | -19,1 | 16% |
| One Black Original Portion | -24 | 20% |
| Småland Portion | -22 | 22% |
| White portion | Price reduction per kilo | Equivalent to tax cut |
| Catch White Spearmint Mini | -24 | 37% |
| Granite Strong White Portion | 0 | 0% |
| Granite White Portion | 0 | 0% |
| Calibre Vit Portion | -24 | 23% |
| Captain Mini White | -24 | 37% |
| Kapten Vit Extra Strong Portion | -24 | 20% |
| Captain White Portion | -24 | 20% |
| Knox Character Blue White Portion | -22 | 17% |
| Knox White Stark Portion | -22 | 17% |
| Knox White Portion | -22 | 17% |
| Knox Xtra Strong White Portion | -22 | 17% |
| Ld Vit Portion | -19 | 18% |
| Ld Salmiak Vit Portion | -19 | 18% |
| Lundgrens Skåne White Portion | 0 | 0% |
| Lundgrens Skåne Slim White Portion | 0 | 0% |
| Lundgrens Norrland White Portion | 0 | 0% |
| Lundgrens Skåne Strong White Portion | 0 | 0% |
| One Vit White Portion | -24 | 18% |
| One Blue White Portion | -24 | 18% |
| Xr Göteborgs Rapé Slim White Portion snus | -24 | 23% |
| Xr General Strong Slim White | -24 | 23% |
| Xr General Slim White Portion snus | -24 | 23% |
