3 min read
Market Concentration: Three Companies, One Market, and the Death of Competition
Three companies—PMI, BAT, JTI—dominate the global nicotine market. The concentration has implications for prices, innovation, and public health. Oligopoly is the industry's default state, and regulation is reinforcing it.
PMI, BAT, and JTI control approximately 65% of the global cigarette market and an even larger share of reduced-risk products. The PMTA process, by making market entry prohibitively expensive, is reinforcing this concentration. **An oligopolistic nicotine market is likely to produce higher prices, slower innovation, and less consumer choice than a competitive market. The public health implications depend on whether the oligopolists use their market power to accelerate or resist the transition away from cigarettes.**
