Smoking Costs the US Economy $891 Billion in 2020

Sep.30.2022
Smoking Costs the US Economy $891 Billion in 2020
Smoking not only poses health risks but also caused US economy a loss of $891 billion in 2020.

Smoking not only carries a high cost in terms of health risks, but also caused the United States economy to suffer losses of $891 billion in 2020.


According to the author of a new study from the American Cancer Society, it amounts to nearly 10 times the revenue of the cigarette industry, which is approximately 92 billion dollars.


Dr. Nigar Nargis, Senior Scientific Director of the American Tobacco Control Research Center, stated that the economic losses caused by smoking far exceed any economic benefits brought by the tobacco industry, including the combined salaries and wages of industry employees, taxes, and industry profits.


At a press conference held by the Cancer Society, Nargis stated that as a society, we can mitigate these economic losses by implementing coordinated and evidence-based tobacco control measures. These measures primarily encourage smoking cessation and prevent individuals from starting to smoke.


In this study, researchers conducted an economic model to measure the economic losses caused by smoking in each state.


A recent study revealed that each state in the US loses an average of $1,100 per person per year in income due to smoking. Kentucky has the highest per capita loss at $1,674, followed by West Virginia at $1,605 and Arkansas at $1,603. The states with the lowest losses were Utah at $331, Idaho at $680, and Arizona at $701.


The damage this industry has caused to individuals' lives and our nation's economy is appalling," said Lisa Lacasse, president of the American Cancer Society's Cancer Action Network.


In a press release, she stated, "It is particularly concerning to see that states with the highest economic losses have the weakest tobacco control policies, but this is not surprising. We know what can reduce tobacco use and alleviate this burden, and now is the time for us to implement it.


Lakas stated that policies proven to decrease tobacco use include significantly increasing tobacco taxes, providing adequate funding for tobacco prevention and cessation programs, and implementing comprehensive smoke-free laws.


The study's authors stated that the goal of the US Department of Health and Human Services is to reduce the smoking rate from 14% in 2018 to 5% in 2030, which would significantly decrease economic losses.


Narcissus said that the Healthy People 2030 goal provides an important target that helps reduce smoking and the corresponding negative impact of tobacco use on the economy.


The Lancet Public Health Journal has published research findings.


Statement:


This article is compiled from third-party information and is only intended for industry communication and learning.


This article does not represent the views of 2FIRSTS, and 2FIRSTS cannot confirm the authenticity or accuracy of the content. The translation of this article is only intended for industry professionals for the purpose of exchanging ideas and conducting research.


Due to limitations in translation ability, the translated article may not fully reflect the original text. Therefore, rely on the original text for accurate information.


Regarding any domestic, Hong Kong, Macau, Taiwan or foreign affairs-related statements and positions, 2FIRSTS maintains complete alignment with the Chinese government.


The copyright for the compiled information belongs to the original media and authors. If there is any infringement, please contact us for deletion.



Disclaimer

This article is provided solely for professional research, industry discussion, and informational purposes. Any references to brands, companies, products, technologies, or policies are made for factual reporting and analytical purposes only, and do not constitute endorsement, recommendation, promotion, or advertising by 2Firsts.

Nicotine-containing products, including but not limited to cigarettes, e-cigarettes, heated tobacco products, and nicotine pouches, carry significant health risks. Readers are responsible for complying with all applicable laws and regulations in their respective jurisdictions, including age restrictions and access limitations.

The information contained in this article should not be regarded as investment, legal, medical, regulatory, or commercial advice. While 2Firsts strives to ensure the accuracy and reliability of its content, it does not assume liability for any direct or indirect loss arising from errors, omissions, inaccuracies, or reliance on the information contained herein.

This article is not intended for individuals below the legal age for accessing tobacco or nicotine-related information in their jurisdiction.

 

Copyright Notice

This article is either original content produced by 2Firsts or content reproduced, translated, summarized, or adapted from third-party sources with attribution where applicable. The intellectual property rights of the original content remain with 2Firsts or the respective original rights holders.

No individual or organization may copy, reproduce, distribute, republish, modify, translate, or otherwise use this content without prior authorization. Any unauthorized use may result in legal action.

For copyright-related inquiries, corrections, or removal requests, please contact: info@2firsts.com.

 

AI-Assisted Translation and Editing Notice

Portions of this article may have been translated, edited, or reviewed with the assistance of artificial intelligence tools to improve efficiency and readability. Due to the limitations of AI-assisted translation and editing, discrepancies, omissions, or inaccuracies may exist when compared with the original source.

Where applicable, readers are advised to refer to the original source for the most complete and accurate information. If you identify any errors or believe that any content infringes upon your rights, please contact us at info@2firsts.com, and we will review and address the matter promptly.

U.S. Appeals Court Says BAT Must Face Class Action Over Cigarette Labels
U.S. Appeals Court Says BAT Must Face Class Action Over Cigarette Labels
A U.S. appeals court ruled that British American Tobacco (BAT) must continue facing a consumer class action lawsuit over cigarette labels. The ruling allows the case to proceed but does not determine that BAT violated the law or is liable for damages. The case highlights ongoing legal risks facing major tobacco companies related to product labeling, consumer disclosures and product liability claims.
Jul.31
Nevada Considers Nearly Doubling Tobacco Taxes, With $65 Million in New Revenue Expected From Expanded Nicotine Levies
Nevada Considers Nearly Doubling Tobacco Taxes, With $65 Million in New Revenue Expected From Expanded Nicotine Levies
Health groups in Nevada are urging lawmakers to nearly double the state cigarette tax and extend similar tax changes to other nicotine products, including e-cigarettes and nicotine pouches.
Jul.17
Exclusive Analysis | Smoore H1 Revenue Rises 19.9% Amid Growth Concentration, Profit Pressure and Slowing Momentum
Exclusive Analysis | Smoore H1 Revenue Rises 19.9% Amid Growth Concentration, Profit Pressure and Slowing Momentum
Smoore’s first-half 2026 revenue rose 19.9%, but the results revealed growing structural risks beneath the headline growth. Heat-not-burn contributed about 61% of incremental revenue and remains driven largely by one core customer, while traditional vaping markets diverged, own-brand growth slowed and China enterprise revenue declined further. Gross profit and adjusted profit lagged revenue growth, while second-quarter revenue growth slowed to about 1.9%, putting greater focus on the quality, concentration and sustainability of Smoore’s expansion.
Capital Markets
Aug.20
From Border-Logistics Insiders to Retail Service Stations, Australia Mounts a Sweeping Crackdown on the Illicit Nicotine Trade as iGET Vapes Surface in A$80 Million Crime Networks
From Border-Logistics Insiders to Retail Service Stations, Australia Mounts a Sweeping Crackdown on the Illicit Nicotine Trade as iGET Vapes Surface in A$80 Million Crime Networks
Australian authorities have disclosed two major enforcement actions that go beyond product seizures and retail closures to examine how illicit tobacco and vape networks operate. On Aug. 14, the Multi Agency Strike Team said seven people had been charged and two criminal networks were valued by authorities at a combined A$80 million, or about US$56.8 million. Investigators allege the groups used bonded warehouses, freight businesses and “trusted insiders” in legitimate industries to circumvent border controls. In a separate operation on Aug. 11, more than 100 service stations were targeted as authorities sought information on illicit tobacco importation, distribution networks and the movement of sales proceeds.
Aug.17
Altria Smokeable Profit Rises 2.4% as Marlboro Share Falls and U.S. Discounts Gain
Altria Smokeable Profit Rises 2.4% as Marlboro Share Falls and U.S. Discounts Gain
Altria’s second-quarter results show a U.S. nicotine market splitting across price, product and regulation. Smokeable profit rose 2.4% as Marlboro pricing offset lower volumes, while discount brand Basic gained share among value-conscious smokers. In oral nicotine, on! PLUS expanded distribution but faced intensifying competition from ZYN and Velo. NJOY remained off the market as patent and regulatory hurdles delayed its return. The broader lesson: U.S. growth increasingly depends on price-tier strategy, retail execution, authorisation and enforcement readiness across the industry.
Special Report
Jul.31
BAT’s Velo Study Finds 61% of Nicotine Users Feel More Comfortable Expressing Themselves When Others Do the Same
BAT’s Velo Study Finds 61% of Nicotine Users Feel More Comfortable Expressing Themselves When Others Do the Same
British American Tobacco’s (BAT) nicotine pouch brand Velo has released a global consumer study and launched its “Echoes of Tomorrowland” campaign with electronic music festival brand Tomorrowland. The research surveyed 2,009 nicotine users across the UK, Spain, Pakistan, Poland and Austria. Velo said 61% of respondents feel more comfortable expressing themselves when they see others doing the same, while 39% said building meaningful connections becomes harder with age. The campaign reflects how nicotine pouch brands are increasingly using music, communities and lifestyle marketing to build consumer engagement.
Aug.10