Industry Report

Labor Shortage in the Tobacco Specialty Trade

Europe’s tobacco industry is facing a major challenge: a labor shortage at the point of sale.

This shortage especially affects traditional, often family-run specialist shops that see customer peaks in the morning and late afternoon, while midday hours are frequently quiet.

The European tobacco industry is currently facing a significant labor shortage.

This shortage is driven by multiple factors, including an aging workforce, declining interest in the sector, and regulatory changes that make it harder to recruit qualified staff.

The impact is likely to be significant, particularly for small and medium-sized businesses such as traditional tobacco shops. These retailers rely on skilled staff to provide personalized advice and service. The shortage may reduce productivity, lower customer satisfaction, and ultimately lead to a decline in sales.

European Tobacco Trade Association (ETTA)

The Tobacco Industry and the Future of Work

Reports indicate that both tobacco producers and retailers are struggling to find qualified workers. For producers, this creates challenges in cultivation, harvesting, and processing. For retailers, it makes it harder to deliver high-quality service and maintain customer satisfaction.

To address these challenges, the industry is encouraged to increase the use of technology and automation — for example, vending machines and terminals with secure age verification. Smart vending for cigarettes and smoke-free products can reduce reliance on staff and improve shop efficiency. It also enables customers to complete purchases quickly and easily.

Additionally, smart vending and terminals with age verification can give traditional shops a modern touch and support a wide range of payment options. In the long run, automation can deliver a modern, convenient, and personalized shopping experience — and increase sales by making products accessible outside regular opening hours.

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