In this piece, we will take a look at top 20 countries with the least smokers. If you want to skip our introduction and analysis of the tobacco and cigarette industry and want to jump ahead to the countries with the lowest percentage of daily smokers, head on over to Top 5 Countries With Least Smokers.
The ability to mass produce products has managed to significantly improve modern day standards of living. Whether it's a smartphone, clothes, or even something as simple as toothpaste, the fact that machines are capable of producing millions of these products has allowed humanity to collectively benefit from the advances in technology.
However, at the same time, the ability to mass produce cigarettes has caused significant loss of life as well. You might be surprised to hear that while the peak number of deaths in the second world war is estimated to sit at 60 million people, data shows that in the 20th century, a stunning 100 million people had lost their lives due to tobacco use. This death toll has its economic impact as well, with the Centers for Disease Control and Prevention (CDC) estimating that smoking cost a whopping $600 billion in economic impact in the U.S. in 2018. Out of this, the lion's share goes to lost productivity due to both health problems and death, with both accounting for $180 billion, each. Additionally, $240 billion is spent on healthcare to navigate debilitating and deadly diseases from smoking such as chronic obstructive pulmonary disorder (COPD) and cancer.
Additionally, while smoking alone is dangerous, daily smoking is the deadliest form of smoking. On this front, data from Institute for Health Metrics and Evaluation (IHME) sheds some light on the percentage of daily smokers in countries around the globe. Its data shows that the highest percentage of daily smokers are in several countries such as Russia, China, Ukraine, other Eastern European countries, and some North African countries. On the flip side, the lowest percentage of daily smokers, i.e., males who smoke cigarettes daily, is only in a few countries. The countries with the least percentage of daily male smokers include Mexico, Sudan, Ethiopia, Liberia, Guinea, Ecuador, Suriname, and Panama.
However, the picture shifts starkly when we take a look at the percentage of daily smokers in women. In fact, over here, nearly every country has the least percentage of daily smokers. There's nearly a laundry list of such countries where the percentage of women who smoke daily sits below 2.5%. These include Iran, China, nearly all of Africa, Antigua and Barbuda, St Vincent and the Grenadines, and Timor-Leste.
Shifting our focus to data from the Organization for Economic Co-operation and Development, only one country out of the data for 43 has a percentage of daily smokers that is higher than 30%. This country is Indonesia, which is known the world over for its high cigarette consumption. On the other hand, roughly a quarter of the countries have some of the lowest percentages of daily smokers. These are eleven nations, led by Iceland at the bottom with 7.2% of people smoking daily and Sweden at the top with 9.5%. As a whole though, nearly half, or nineteen countries have half the percentage of daily smokers as the world leader Indonesia.
Safe to say, Indonesia isn't ranking high on any list of countries with the lowest percentage of daily smokers soon. However, one country that is improving in this area is New Zealand. It has some of the lowest levels of daily smokers, which dropped from 9.4% in 2020 (also mentioned in the OECD data above) to 8% in 2022 - the lowest in its history since data was first recorded. New Zealand has a strict policy on smoking and has banned its younger generations from being able to purchase cigarettes - ever. A country that has means business in its fight against smoking also has a low percentage of daily smokers - maybe there's something that all countries can learn from New Zealand.
And while women in most countries are like to smoke less daily, this isn't true for their counterparts in America. More data from the CDC shows that 10.1% of adult American women smoke daily, just a couple of percentage points shy of the percentage of men (13.1%) with the same amount of cigarette consumption. Finally, looking at Europe, data from Eurostat confirms that Iceland, Sweden, and Norway are the countries with the least percentage of daily smokers in the continent. If, in addition to smoking statistics, you're interested in looking at which countries make the best tobacco, be sure to check out 12 Countries that Produce the Best Tobacco in the World.
Topping our analysis with the current state of the tobacco industry, the management of Philip Morris International Inc. (NYSE:PM) shared during the firm's fourth quarter of 2022 earnings conference:
The picture for 2023 is quite different while our gross margin will face increased inflationary pressure, this is now primarily due to COGS for the cigarette business as leaf, acetate tow, salaries and energy cost increase. An acceleration in combustible pricing and lower air freight cost will serve to mitigate this exceptional inflation. However, a time lag is built into our projections. Importantly, while cost inflation is also headwind for IQOS, the 2023 margin impact of our heat-not-burn business is expected to be favorable due to the positive impact of increased HTU volume at higher net revenue per unit, planned ILUMA efficiencies and a more measured increase in device volumes. Overall, this underlying strength from IQOS combined with pricing will not be sufficient to offset combustible cost inflation in 2023, however, we expect a lower organic gross margin decline compared to last year and for our heat-not-burn business, to have an increasingly visible positive impact as we approach 2024.
Apart from Philip Morris, other big smoking companies are British American Tobacco p.l.c. (NYSE:BTI), Imperial Brands PLC (OTCMKTS:IMBBY), Altria Group, Inc. (NYSE:MO), and Japan Tobacco Inc. (OTCMKTS:JAPAF). With these details in mind, let's take a look at countries with the least smokers in the world. For a complete list of top tobacco companies, take a look at 10 Best Tobacco and Cigarette Stocks To Buy.
Our Methodology
To compile our list of countries with the lowest percentage of smokers, we used data from the World Health Organization (WHO) for the percentage of tobacco smokers ranked by country. The countries with the lowest percentage of smokers including both men and women are as follows.
Top 20 Countries with Least Smokers
20. Barbados
Estimate of current tobacco smoking prevalence (%): 6.9
Barbados is a West Indian country. It is one of the smallest nations in the world, covering an area of 439 kilometers squared. Despite this, it is one of the more developed countries in the world, with a GDP per capita of $21,086.
19. Republic of India
Estimate of current tobacco smoking prevalence (%): 6.7
The Republic of India, or simply India, is the second most populous country in the world. It is also the fifth largest economy in the world in nominal terms and has one of the fastest growth rates in Asia.
18. Republic of Peru
Estimate of current tobacco smoking prevalence (%): 6.6
The Republic of Peru is a South American coastal country. It relies heavily on mining to earn its foreign exchange, exporting copious amounts of gold, copper, and petroleum.
17. United Republic of Tanzania
Estimate of current tobacco smoking prevalence (%): 6.5
The United Republic of Tanzania is an East African coastal nation. It is one of the poorest nations in the world, with a small $76 billion economy and a low GDP per capita of $1,245.
16. Republic of Chad
Estimate of current tobacco smoking prevalence (%): 6.3
The Republic of Chad is a landlocked African country. It has seen a human presence for thousands of years and has a GDP per capita of just $755.
15. Republic of Mali
Estimate of current tobacco smoking prevalence (%): 6.2
The Republic of Mali is another landlocked African nation. Its economy is worth $18.4 billion, and Mali relies almost exclusively on gold for its exports.
14. Republic of the Niger
Estimate of current tobacco smoking prevalence (%): 6.1
The Republic of the Niger is an African country that is one of the poorest nations in the world with a GDP per capita of $561. Like Mali, its economy is heavily reliant on gold.
13. Republic of Liberia
Estimate of current tobacco smoking prevalence (%): 6.1
The Republic of Liberia is a West African coastal country and one of the smallest on the continent. Its $3.9 billion economy is fueled primarily by agriculture and mining.
12. Republic of Uganda
Estimate of current tobacco smoking prevalence (%): 5.9
The Republic of Uganda is an East African nation with a GDP of $46 billion. Tobacco exports constitute a significant chunk of its foreign exchange earnings but are outshone by coffee.
11. Republic of Senegal
Estimate of current tobacco smoking prevalence (%): 5.4
The Republic of Senegal is another West African country. Like some other African nations, it also relies on agriculture and natural resources to fuel its economy.
10. Republic of Cameroon
Estimate of current tobacco smoking prevalence (%): 5.3
The Republic of Cameroon is a coastal African country. It has high levels of poverty and most of its population relies on farming to make a living.
9. Turkmenistan
Estimate of current tobacco smoking prevalence (%): 5
Turkmenistan is a coastal Central Asian country. It is relatively prosperous compared to some of the African countries on our list and has a GDP per capita of $11,929.
8. Togolese Republic
Estimate of current tobacco smoking prevalence (%): 4.9
The Togolese Republic is another African country. With a population of just 8.5 million, it is one of the less prosperous nations on our list and has a GDP per capita of $916.
7. Democratic Republic of São Tomé and Príncipe
Estimate of current tobacco smoking prevalence (%): 4.7
The Democratic Republic of São Tomé and Príncipe is an island African nation, which is one of the smallest countries in the world covering just 964 square kilometers in area.
6. State of Eritrea
Estimate of current tobacco smoking prevalence (%): 4.5
The State of Eritrea is an Eastern African nation. It has one of the lowest GDP per capita in the world at $626.
Disclosure: None. All investment decisions should be made after consulting a qualified professional. Top 20 Countries with Least Smokers is originally published on Insider Monkey.