BAT predicts fast growth in smoking alternatives for the next decade

British American Tobacco

29/09/2026 09:59

By Emma Rumney
LONDON, Sept 29 (Reuters) - British American Tobacco BATS.L expects revenue growth from smoking alternatives like vapes and nicotine pouches in the mid-teens in percentage terms each year until 2030, it said on Tuesday. 
The world's second-largest tobacco maker by market value will host an investor day later on Tuesday, where it will outline its strategy for growth until the end of the decade
It had already forecast mid-teens revenue growth from smoking alternatives for 2026 and now expects this to continue in the years ahead
It also expects the "contribution margin" of these products — a measure of how profitable they are — to reach at least 30% by 2030, against 13.3% in June 2026. 
BAT, which makes cigarette brands like Dunhill and Lucky Strike, has been trying to grow revenues from other nicotine products amid long-term declines in smoking in some key markets
Its rising ambitions reflect fast-growth in its nicotine pouch label Velo, after years of difficulties with its vape and heated tobacco brands
The company also said it remains on track to deliver at the lower end of its guidance for revenue growth of between 3% and 5% and growth of 4% to 6% in adjusted profit from operations in its 2026 financial year

 (Reporting by Emma Rumney; Editing by Jan Harvey)
 ((Email: emma.rumney@thomsonreuters.com; Phone: +44 7391 409 253))