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.

UK Sets Oct. 29 Start for New Vape Retail Rules Covering Age Checks, Giveaways and Discounts
UK Sets Oct. 29 Start for New Vape Retail Rules Covering Age Checks, Giveaways and Discounts
The UK Department of Health and Social Care published new guidance on Aug. 11 outlining the next phase of retail rules under the Tobacco and Vapes Act 2026, which will take effect on Oct. 29, 2026. The measures extend the minimum age of sale of 18 to all vaping and consumer nicotine products and restrict proxy purchasing, promotional giveaways and substantial discounts. Relevant offences in England, Wales and Scotland may carry a £200 fixed penalty notice, while persistent offenders can face temporary sales bans.
Aug.12
Imperial Brands Plans Thousands of Job Cuts Across U.S. and Europe in Cost Restructuring
Imperial Brands Plans Thousands of Job Cuts Across U.S. and Europe in Cost Restructuring
According to Reuters, citing Bloomberg News, British tobacco company Imperial Brands PLC plans to cut thousands of jobs across the United States and Europe as part of a cost reduction and organizational restructuring effort. The announcement drew market attention to the company’s shares. The move comes as global tobacco companies continue adjusting their operations amid slower cigarette market growth, changing consumer preferences and the transition toward next-generation nicotine products.
Aug.11
French Vape Market Under Pressure as Europe’s First Listed Vape Company Kumulus Vape Reports 7.8% H1 Revenue Decline, Retail Sales Rise 41.5%
French Vape Market Under Pressure as Europe’s First Listed Vape Company Kumulus Vape Reports 7.8% H1 Revenue Decline, Retail Sales Rise 41.5%
Kumulus Vape, Europe’s first publicly listed vape company, reported a 7.8% year-on-year decline in first-half 2026 revenue. Amid changing conditions in France’s vape market, the company said channel diversification helped offset pressure, with physical store sales increasing 41.5% year on year. Listed on Euronext Access Paris in 2019 and later transferred to Euronext Growth Paris, Kumulus Vape is viewed as a representative company of Europe’s vape sector. Its performance highlights the industry’s shift from rapid expansion toward more operationally focused growth.
Jul.27
JT’s Ploom Volumes Rise 43.5% as Cigarettes Anchor Its Transition
JT’s Ploom Volumes Rise 43.5% as Cigarettes Anchor Its Transition
JT’s Ploom heated-tobacco volumes rose 43.5% in the first half of 2026, while combustibles still represented about 97% of its tobacco volume and remained the main earnings base. In Japan, reduced-risk products now account for 48.7% of industry shipments, shifting competition from category adoption towards brand share, pricing and consumer retention. JT’s results offer a revealing case of a traditional tobacco company pursuing a prolonged, dual-track transformation.
JTI
Jul.30
Earnings Analysis | CTIHK H1 2026 Revenue Falls 26.9% as Core Businesses Diverge and New Growth Drivers Remain to Be Proven
Earnings Analysis | CTIHK H1 2026 Revenue Falls 26.9% as Core Businesses Diverge and New Growth Drivers Remain to Be Proven
China Tobacco International (HK) reported a 26.9% revenue decline in H1 2026, while gross profit fell only 9.5%, revealing sharp divergence across its businesses. Tobacco leaf imports contracted, while leaf exports and Brazil operations expanded strongly. Cigarette exports faced China duty-free market transition, and new tobacco products remained small. Meanwhile, CTIHK continues to strengthen its role as an investment and financing platform, though major external deals have yet to emerge. 2Firsts examines what these shifts mean for its next growth drivers.
Capital Markets
Aug.24
Special Report|AIR H1 Revenue Rises 3.7% as Shisha Volumes Fall 9%, Testing Its Shift Beyond Traditional Hookah
Special Report|AIR H1 Revenue Rises 3.7% as Shisha Volumes Fall 9%, Testing Its Shift Beyond Traditional Hookah
AIR’s first half-year results as a listed company offer a new test of how far a traditional hookah business can transform. H1 2026 revenue rose 3.7%, even as Flavored Shisha Molasses shipments fell 9%, with pricing and mix supporting growth. Traditional shisha still generates almost all revenue, while OOKA, Crown Switch, Greentank and U.S. regulatory spending point to accelerating diversification. The next test is whether those investments can become a second business of meaningful scale and profitability.
Capital Markets
Aug.21