We’re calling for all UK supermarkets to stop selling tobacco products.
Overview of the UK supermarket environment
The UK grocery market is divided between the following supermarket groups:
Tesco is the largest supermarket in the UK with 28.5% market share[1]. It sells a full range of cigarettes and other tobacco products and vapes. It greatly increased its tobacco footprint when it took over Booker Group in 2017, a leading wholesaler and grocery distributor, supplying food and other products direct to businesses rather than to the consumer. It covers a wide range of outlets which include independent retailers, convenience stores, pubs, restaurants and hotels. It operates through a network of cash and carry and distribution centres. Through the Booker purchase Tesco acquired the convenience stores chains Londis and Budgens, both operated as franchise shops. They include petrol station forecourts off-licences and corner shops.
Tesco declares in its Core Purpose and Values statements that it is:
“Making it easier to live more healthily”, and includes the intention to “Act responsibly for our communities”[2]
These laudable intentions do not seem to link in with their sales of cigarettes and other cancer-inducing tobacco products.
Statistics are hard to access, but it seems probable that Tesco has some 30% or so of the retail market in tobacco products, which seems to run counter to its own ethics and values.
Sainsbury’s has the second largest part of the grocery market in the UK with a 15% share[3]. It sells the full range of tobacco products and vapes direct to the consumer. Like Tesco it has diversified into other areas, outside of groceries, and encompasses other household brands such as Argos, the digital retailer, Habitat the furniture brand and the Tu clothing brand. It also includes Sainsbury’s Bank. Overall, Sainsbury’s has 600 supermarkets and 850 convenience stores.
In Sainsbury’s “Purpose in Action[4]” objectives, its management talks about “Inspiring everyone, every day to make healthier choices”. Offering cigarettes for sale hardly seems the best way of achieving this.
Asda (11.8% market share) sells the full range of tobacco products and vapes. It includes supercentres, supermarkets and Asda Express stores, with the latter now reaching 470 stores. Asda estimates that it serves some 16m customers each week. Like most national supermarkets it has diversified into other areas, including pharmacies and opticians. Asda is well known for George, its fashion retailer.
Of the other grocery stores, Morrisons (9% market share) offer a full range of tobacco and vaping products. On the other hand, Aldi (10.5% market share) does not sell tobacco and has never done so, and finally, Lidl (8.3% market share) used to sell tobacco products but no longer does so. Lidl have made a decision to phase out tobacco sales at all their stores, with most already tobacco free. This is in keeping with their commitment to support a smoke-free future and promote public health. This has also been rolled out through their European stores.
Waitrose sells the whole range of tobacco products while Marks & Spencers Food has never sold tobacco.
Wholesale Distribution of Tobacco Products
The largest wholesaler of tobacco in the UK is Booker Group which grew significantly when it was taken over by Tesco. Other wholesalers tend to be the manufacturers themselves such as BAT and Japan Imperial Tobacco who distribute directly to the retailer.
Do Supermarkets make money out of selling tobacco products?
Some 80% of the price of a packet of cigarettes purchased in a supermarket is made of tax and is forwarded to the Government as tobacco duty. This has brought the average price of a packet of 20 cigarettes to £16. Tobacco duty is levied at £6.33 on a packet of 20 cigarettes plus 16.5% of the retail price.[5] Tobacco duty is also levied on cigars, hand-rolled tobacco and other similar tobacco products. VAT at 20% is also added to the price of all tobacco products (calculated after tobacco duty has been added to the price).
However, as vaping has replaced cigarettes, the government now levies between £1-£3 per product on vaping products depending on the level of nicotine contained. This is expected to raise £445m in tax in 2028/29. 20% VAT is also paid on vaping products. In 2022/23 tobacco tax revenue raised £10bn for the Exchequer so it is quite clear that the Government have a vested interest in ensuring grocery outlets continue to sell tobacco. This is in spite of the fact that such products often run contrary to the stated principles of the supermarkets involved.
As a result of such high taxation, it is difficult to see the benefit for the grocery chains themselves of selling tobacco products, as so much of the vending price goes to the government, and this may account for why a number of grocery chains do not bother to sell tobacco. However, because of the reach of the largest chains such as Tesco and Sainsbury’s, if they were to cease selling tobacco, it may have a material effect on government revenue from tobacco tax.
Elsewhere in Europe
The Netherlands already has a ban on selling cigarettes in Dutch supermarkets, which came into force in 2024. Cigarettes in Holland are only available in petrol stations, tobacco stores and newsstands.[6] The Dutch Food and Consumer Product Safety Authority (NVWA) enforces the ban, although violations especially in convenience stores were found to be common at first. The ban forms part of their objective of achieving a smokefree generation by 2040 as set out in the Dutch “National Prevention Agreement”.
We are not aware of any other countries that have made it illegal for grocery stores to sell tobacco.
[1] Times Newspaper 20th August 2025
[2] https://www.tescoplc.com/about/how-we-do-business/core-purpose-and-values
[3] Times Newspaper 20th August 2025
[4] https://corporate.sainsburys.co.uk/purpose-in-action/
[5] https://www.politics.co.uk/reference/tobacco-duty/
[6] https://www.iamexpat.nl/lifestyle/lifestyle-news/lidl-announces-it-has-stopped-selling-cigarettes-netherlands