Who is behind the nicotine industry in Europe? Leading players and their financiers
This research maps the key players in Europe’s nicotine product industry and their financial backers. It examines ten companies, their supply chains, and specific nicotine-related financing. Findings reveal that major tobacco multinationals receive the vast majority of financing, predominantly from North American and European institutions.
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OVERVIEW
Company selection
The European nicotine market comprises traditional tobacco multinationals and newer, specialised producers. British American Tobacco (BAT), Imperial Brands (IB), Japan Tobacco International (JTI), and Philip Morris International (PMI) hold varying degrees of reliance on nicotine products. Nicotine products account for approximately 14% of BAT’s revenues, while PMI generates about 9% of its revenue from nicotine (excluding IQOS). By contrast, JTI and IB derive only 1% of their revenues from these products. Newer entities such as NGP Tobacco, Nicoswitch, Smoore International, Shenzhen IVPS Technology, and Shenzhen iMiracle Technology are highly or fully dependent on nicotine products.
Combustible tobacco remains the dominant revenue source for major firms; however, vapes and nicotine pouches represent rapidly expanding segments. Production spans in-house manufacturing and reliance on third-party contract manufacturers, primarily situated in Europe and Asia. Notably, newer companies appear to be predominantly self-financed or supported by private owners and related-party loans, rather than traditional financial institutions.
Financial research
Between January 2018 and October 2025, financial institutions provided EUR 18.7 billion in loans and underwriting services attributable to nicotine products. Underwriting was the primary financing channel, constituting 64% (EUR 11.9 billion) of the total, reflecting the critical role of banks in facilitating bond and equity issuances for tobacco-related firms. Corporate loans accounted for the remaining 36% (EUR 6.8 billion). After reaching a peak in 2020, nicotine-related financing has demonstrated a consistent downward trajectory since 2022.
Financial dependency is heavily concentrated on BAT and PMI. Of the ten reviewed companies, only six received identifiable institutional financing. Due to their scale and relatively higher share of nicotine-related activities, BAT (EUR 8.4 billion) and PMI (EUR 7.9 billion) absorbed the vast majority of the identified financing.
North American and European banks are the principal creditors. North American institutions provided EUR 5.9 billion, while European Union banks provided EUR 5.0 billion. When including broader European nations such as the UK and Switzerland, the European total reaches EUR 8.8 billion. Citigroup, Bank of America, and Deutsche Bank emerge as the top individual creditors. Within the EU, German and Spanish banks, alongside limited French participation, provided significant loan and underwriting volumes.
Shareholders represent the core financiers of the nicotine industry. As of October 2025, EUR 27.9 billion in nicotine-attributable investments were identified, comprising EUR 25.3 billion in shareholdings and EUR 2.6 billion in bondholdings. Investment exposure is similarly dominated by PMI (EUR 15.5 billion) and BAT (EUR 11.2 billion). The investor base is overwhelmingly concentrated in North America, which accounts for 83% (EUR 23 billion) of total investments, followed by Europe (EUR 3 billion) and Asia (EUR 1.2 billion).
Major US asset managers, including Capital Group, Vanguard, BlackRock, and State Street, are the leading investors. UBS is the only non-US institution in the top 15, and no EU investor appears in the top 20. Within the EU, German and French institutions drive investment. Despite the sector’s diversification, the financial backbone remains highly concentrated around the largest global tobacco multinationals, which continue to secure robust backing from mainstream financial markets.
