Why Cigarettes Are So Much More Expensive Today?

July 29, 2025
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If you’ve bought a pack of Taylor Made cigarettes in the past ten years, you’ve probably noticed the price creeping up—then jumping way up. What used to cost around $8 or $9 is now hitting $16, $18, even $20 in some parts of Canada. For many smokers, this steady increase feels relentless, and it raises an obvious question: Why?

This blog breaks down the real reasons behind the sharp rise in cigarette prices over the last decade, especially for name-brand smokes like Taylor Made. From taxes to industry strategy to government regulations, the answer isn’t simple—but it’s not mysterious either.

The Real Price Tag: What’s in a Pack?

When you pay $18 for a pack of Taylor Made smokes, most of that money isn’t for the tobacco. It’s going straight to the government.

Tobacco is one of the most heavily taxed consumer products in Canada. Between federal and provincial taxes, more than 60%—sometimes over 70%—of what you pay for cigarettes is tax. That’s not an exaggeration.

Governments raise cigarette taxes for two main reasons:

To reduce smoking. The more expensive it is to smoke, the fewer people start, and the more smokers try to quit.
To raise revenue. Smoking-related illnesses cost the health care system billions. Taxes help offset that.

This isn’t just a recent trend. Over the last decade, tobacco taxes have increased steadily, sometimes yearly, and in many provinces they’re automatically indexed to inflation—so they go up even if no new law is passed.

It’s Not Just Taxes: Industry Tactics Matter Too

Tobacco companies aren’t just sitting back while taxes rise—they’re also making pricing decisions that impact what you pay.

One strategy they use is called “overshifting.” When the government adds $1 in tax per pack, companies might raise the price by $1.25 or $1.50. That extra boost goes into their profits, not the tax fund. It also helps them cushion the impact of declining sales.

Overshifting is more common with premium or mid-range brands like Taylor Made. These brands have loyal customers who are willing to absorb price hikes—at least for a while.

At the same time, companies often try to keep value brands cheaper by absorbing more of the tax hikes or limiting price increases. This creates a bigger gap between the cheapest and most expensive cigarettes, and subtly nudges smokers to “trade down” to more affordable options—without quitting.

So if you’ve stuck with Taylor Made instead of switching to a discount brand, you’ve been hit harder by industry pricing strategies than some other smokers.

Packaging and Regulation: More Than a Visual Change

A few years ago, Canada introduced plain packaging laws that forced all tobacco products to come in the same drab, olive-colored boxes with uniform fonts and massive health warnings. No logos. No colors. No flair.

While this move was aimed at reducing the appeal of smoking—especially for new and younger smokers—it also increased compliance costs for tobacco companies. Every change to packaging, labeling, or health warnings costs money. And those costs get passed on to consumers.

Other regulations, like display bans (no cigarettes visible behind the counter) and marketing restrictions, also increase operational expenses. Even if they’re not directly visible, they’re baked into the retail price you pay.

The Inflation Effect

Let’s not ignore the obvious: everything has gotten more expensive. Food, gas, housing—and yes, cigarettes.

Inflation affects all parts of the tobacco supply chain. The cost of tobacco leaf, packaging materials, shipping, and retail operations has climbed. Labor costs have risen too. While taxes are the biggest piece of the puzzle, inflation pressures have added their own steady upward push on prices.

This is especially true post-2020, as the global economy bounced through a pandemic, supply chain issues, and now broader inflation.

Cracking Down on Contraband and Native Smokes

As legal cigarette prices go up, contraband and Native tobacco become more attractive to budget-conscious smokers. These products are often sold without taxes and can cost half the price—or less—of commercial brands like Taylor Made.

Governments know this, and they’ve stepped up enforcement to fight illegal tobacco sales. Raids, seizures, and new penalties are increasingly common.

But here’s the twist: as enforcement tightens, legal cigarettes become the only safe option for retailers, and that drives prices even higher. There’s less room to compete with contraband, so brands like Taylor Made focus on protecting their margins through price increases.

So while illegal smokes may undercut the system, the crackdown on them helps lock in higher prices for legal ones.

A Shrinking Customer Base

There’s another factor you can’t ignore: fewer people are smoking.

And that’s a good thing from a public health perspective. But for tobacco companies, it means a smaller customer base and less revenue. To keep profits stable, they do what any business does in that situation—they raise prices.

It’s a classic case of fewer people paying more.

In fact, for some companies, raising prices has become the main way to keep revenues from dropping too fast. This helps explain why prices are going up faster than taxes or inflation alone would justify.

Provincial Differences Make It Worse

Not all provinces tax cigarettes the same way. If you’ve ever traveled across Canada, you’ve probably noticed price differences from one place to another. For example:

In Quebec, prices tend to be a few dollars lower than the national average.
In British Columbia or Newfoundland, they’re among the highest in the country.

That’s because each province sets its own tobacco tax rates. Some are more aggressive than others. And over time, the gap between provinces has widened, especially for premium brands.

If you smoke Taylor Made and live in a high-tax province, you’re likely paying significantly more per pack than someone in a low-tax province—even for the same product.

The Psychological Shift

The rising price of cigarettes has also changed how smokers think about their habits.

Ten years ago, people complained when a pack hit $10. Now, $18 is becoming the new normal. Smokers adjust, grumble, and either cut back or find ways to cope—like buying in bulk, rationing, or switching brands.

Some quit entirely because they can’t justify the cost. Others move to alternatives like vaping, heated tobacco, or even roll-your-own products, which are often taxed at a lower rate.

And that’s part of the goal. Price is one of the most effective ways to reduce smoking, and it’s been working.

So Why Are Taylor Made Smokes More Expensive Now?

Let’s bring it all together.

Taylor Made cigarettes are more expensive now because:

Federal and provincial governments have steadily increased tobacco taxes.
Tobacco companies are overshifting those taxes to raise their own profits.
Compliance costs from regulations like plain packaging add to pricing pressure.
Inflation makes everything more expensive, including production and distribution.
Enforcement against contraband tightens the legal market and pushes up prices.
A shrinking customer base means fewer buyers supporting the same profit goals.

This is why you’re now paying close to $20 a pack for a product that cost half that not long ago.

Conclusion

Cigarette pricing isn’t just a story about taxes—it’s a story about public health, business strategy, inflation, and government policy all wrapped into one.

For smokers, it means a decision: pay more, smoke less, or consider quitting altogether. For governments, it’s about balancing health goals and revenue streams. For tobacco companies, it’s about maintaining profits as the market shrinks.

Taylor Made, like other commercial brands, is caught in the middle—but for consumers, the effects are clear: smoking costs more now than ever, and it’s not slowing down.

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