Cost of Tobacco
Global Center for Good Governance in Tobacco Control (GGTC)Cost of Tobacco
Cigarette butts floating at the water surface above a riverbed with fish

The costs of tobacco to society

Estimates, calculators and research on the health, economic, social and environmental costs attributable to tobacco, to help governments measure these costs and recover them from the tobacco industry.

Calculators

Cigarette butt floating on open water Global estimate
US$25.7 billion / year

TobaccoPlastics

Estimated waste-management and marine ecosystem-service losses from cigarette plastic waste.

View country estimate →
Treated water flowing from an outfall at a treatment plant Global estimate
US$1.69 billion / year

Cigarette-Butt Water-Treatment Calculator

Estimate potential water-treatment costs using country-specific inputs.

Calculate for a country →
Stacked coins on a budget chart beside a calculator External tool ↗
Tobacco Atlas · CoRRE

Cost Recovery and Revenue Estimator

Economic cost of smoking by country, the gains from reducing it, and the extra tax revenue. Developed by the Tobacco Atlas (American Cancer Society, Vital Strategies, Johns Hopkins). Opens the Tobacco Atlas website in a new tab.

Open CoRRE (external site, opens in a new tab)
The harms

Ten categories of harm

Ten categories of harm for which the tobacco industry can be held accountable, adapted from a STOP/GGTC accountability framework. Each shows how far it has been costed and the most relevant reading.

Cost estimates

What has been counted globally

Estimates of the cost of tobacco worldwide, with what each includes and excludes.

Illness and premature death · 152 countries

Global economic cost of smoking-attributable diseases

US$1.436 trillion2012
Health care US$422 bnLost productivity US$1,014 bn

Excludes secondhand smoke, smokeless tobacco and environmental damage.

Goodchild et al., 2018

Environmental damage · per year

Tobacco industry accountability for marine pollution: country and global estimatesGGTC study

US$25.7 billionper year
Waste management ≈US$5 bnMarine ecosystem losses ≈US$20.7 bn

Excludes toxic effects, accumulated pollution, deforestation, emissions and water use.

Sy, 2023

Regional, multi-country and historical
Regional · 8 Latin American countries
US$49.8 bn2020

Health, economic and social burden of tobacco in Latin America

Medical care, lost productivity and unpaid caregiving.

Pichón-Riviere et al., 2024

Multi-country · 6 countries
US$2.3 bnChina, 2021

Modelling the global economic costs of tobacco product waste

Direct clean-up costs in Brazil, China, Germany, India, Jordan and South Africa.

Lam et al., 2022

Global · historical (1998)
US$27.2 bn1998 US$

Fire injuries, disasters, and costs from cigarettes and cigarette lights

Losses from fires caused by cigarettes and lighters, in 1998 US dollars.

Leistikow et al., 2000

Country studies
South KoreaChildrenHealth-care costs of secondhand smoke at home among childrenAbout US$152 more per exposed child up to age 20 (2018 US$).
Includes: Five childhood conditions.Excludes: Other illnesses, caregiver costs, effects after age 20.Park and Bae, 2020
BangladeshFarmingThe economic cost of tobacco farming in BangladeshNet social loss of about BDT 77,400 per acre of tobacco.
Includes: Unpaid family labour, own land and fuelwood, soil treatment, farmer health costs.Excludes: Effects beyond the farm.Hussain et al., 2020
South AfricaIllicit tradeTax revenue lost due to illicit cigarettes, 2002–2022About R119 billion in excise and VAT (2022 prices).
Includes: Excise and VAT; range R65–130 billion.Excludes: Corporate tax; not attributed to any one company.Vellios and van Walbeek, 2024
6 countriesCorporate taxAshes to ashes: how British American Tobacco avoids taxesNearly US$700 million in tax projected to be lost by 2030.
Includes: Profit shifting in Bangladesh, Brazil, Guyana, Indonesia, Kenya, Trinidad and Tobago.Excludes: Excise and VAT. Projected, not observed.Tax Justice Network, 2019
UruguayLegal challengesPhilip Morris v. Uruguay: the cost of defending health warningsJust over US$10 million in legal costs; Philip Morris ordered to pay US$7 million plus fees.
Includes: Uruguay’s arbitration costs.Excludes: Staff time, delay and wider policy costs.IELP, 2017
Full references
  1. Goodchild M, Nargis N, Tursan d’Espaignet E. Global economic cost of smoking-attributable diseases. Tobacco Control. 2018;27(1):58–64.
  2. Sy DK. Tobacco industry accountability for marine pollution: country and global estimates. Tobacco Control. 2023. doi:10.1136/tc-2022-057795.
  3. Pichón-Riviere A, et al. Health, economic and social burden of tobacco in Latin America and the expected gains of fully implementing taxes, plain packaging, advertising bans and smoke-free environments control measures: a modelling study. Tobacco Control. 2024;33(5):611.
  4. Lam J, Schneider J, Shadbegian R, Pega F, St Claire S, Novotny TE. Modelling the global economic costs of tobacco product waste. Bulletin of the World Health Organization. 2022;100:620–627.
  5. Leistikow BN, Martin DC, Milano CE. Fire injuries, disasters, and costs from cigarettes and cigarette lights: a global overview. Preventive Medicine. 2000;31(2):91–99.
  6. Park J, Bae S. Modeling healthcare costs attributable to secondhand smoke exposure at home among South Korean children. International Journal of Environmental Research and Public Health. 2020;17(12):4496.
  7. Hussain AKMG, et al. The economic cost of tobacco farming in Bangladesh. International Journal of Environmental Research and Public Health. 2020;17(24):9447.
  8. Vellios N, van Walbeek C. Tax revenue lost due to illicit cigarettes in South Africa: 2002–2022. BMJ Open. 2024;14(3):e077855.
  9. Tax Justice Network. Ashes to ashes: how British American Tobacco avoids taxes in low- and middle-income countries. 2019.
  10. International Economic Law and Policy Blog. ISDS tobacco litigation costs. 2017.
From costing to recovery

Article 19 of the WHO Framework Convention on Tobacco Control asks Parties to address the tobacco industry’s criminal and civil liability, including compensation. Parties have since been urged to enforce that liability through criminal, civil or administrative procedures and effective, proportionate and dissuasive sanctions, and to hold the industry accountable for the damage it causes to the environment. They have also asked for policy options and tools to recover costs from the industry, including levies, fees and surcharges, for work on administrative and other non-judicial liability measures alongside the courts, and for methods to estimate the environmental and health damage the industry causes.

Recovering these costs depends on measuring them, which is what the estimates and calculators on this page do.

ESG

What tobacco ESG reporting leaves out

Tobacco companies’ ESG and sustainability reports are self-reported: each company selects the indicators it discloses. The reports highlight activities such as tree planting, clean-ups and donations, and do not account for the costs described on this page, as GGTC’s analysis of tobacco industry ESG reporting shows. The columns below set out the costs that fall under each ESG pillar.

E

Environmental costs

Typically reportedTrees planted, clean-up sponsorships, emission-intensity targets

  • Deforestation and land clearing600 million trees and 200,000 hectares a year. WHO, 2022
  • Water and climate22 billion tonnes of water and 84 Mt CO₂e a year. Zafeiridou et al., 2018
  • Plastic waste and marine damageUS$25.7 billion a year; 4.5 trillion filters discarded. Sy, 2023
  • Toxic pollution and firesPesticides, leachate from butts into water, and fires from cigarettes.
S

Social costs

Typically reportedCommunity donations, farmer-support and child-labour programmes

  • Death and diseaseUS$1.436 trillion a year in health care and lost productivity. Goodchild et al., 2018
  • Child labour1.3 million children work in tobacco production. STOP, 2021
  • Farmer debt and food insecurityContract growing that keeps farmers in debt, on land that could grow food. STOP, 2023
  • Youth addiction and household povertyMarketing to young people, and household spending diverted by addiction and illness.
G

Governance costs

Typically reportedCodes of conduct, board policies, “regulatory engagement”

  • Interference in policyLobbying and pressure that delayed tobacco control laws in at least 10 countries. GGTC and STOP, 2025
  • Litigation against health lawsPublic money spent defending them: Uruguay >US$10 million. IELP, 2017
  • Illicit trade and tax avoidanceRevenue lost: South Africa R119 billion; BAT profit shifting ~US$700 million. GGTC, 2026
  • Disinformation and fraudConcealing the harms of smoking, as found in the US racketeering (RICO) case.

Tobacco Liability Hub (GGTC)

Legal frameworks and options for holding the tobacco industry liable.

Visit the Tobacco Liability Hub →