How are cigarette companies so profitable if people are smoking less?
Sales of cigarettes fell by 37% in the US in the last 15 years, meanwhile tobacco companies saw revenue from cigarettes grow by 32%, to $93.4 billion in 2016.
A pack of cigarettes used to cost an average $3.73; now it costs $6.42. While companies lost smokers, they compensated by asking to pay more to keep their habit 🚬.
Last year, Americans spent more with cigarettes than on beer and soda combined, according the Wall Street Journal.