Canada
Overview
Prior to April 2011, tobacco packaging in Canada featured an easy opening device, commonly known as tear tape, with specific colours for each province. These were commercially available, affixed to the package by manufacturers, and contained minimal security features or verifiable reporting mechanism.
However, with the rise of illicit tobacco products on the Canadian market – especially in the form of locally made product on which taxes hadn’t been paid – the need for more secure stamps became apparent.
It was for this reason that high-security stamps were introduced in 2011, manufactured by the Canadian Bank Note Company, (CBN), with SICPA as sub-contractor. The stamps were extended to medical and recreational cannabis in 2019 and vaping products in 2022.
Since the implementation of secure tobacco stamps in 2011, there has been a noticeable improvement in the ability of law enforcement to detect such products.
In the 2023/24 fiscal year, Canada Revenue Agency collected $2.6 billion in revenue from tobacco products, $248 million from cannabis, and $496 million from vapes.
Tax Stamp Volume Analysis
Volume Period: 2019 - 2024
| Estimated Stamp Volume | ||||
|---|---|---|---|---|
| Product Type | 2019 | 2024 | CAGR | Volume in |
| Beer | 4,700M | 4,187M | -2.28% | Millions |
| Cider and perry | 77,190K | 78,569K | +0.35% | Thousands |
| Cigarettes | 1,145M | 662M | -10.38% | Millions |
| Fine-cut tobacco | 18M | 9M | -12.85% | Millions |
| Ready to drink | 346,191K | 687,503K | +14.71% | Thousands |
| Spirits | 221,763K | 233,955K | +1.08% | Thousands |
| Wine | 822M | 855M | +0.80% | Millions |
| Total with Prog | 1,163M | 671M | -10.41% | Millions |
| Total no Prog | 6,167M | 6,043M | -0.41% | Millions |
| Total All | 7,330M | 6,714M | -1.74% | Millions |
Detailed Yearly Data
2024 (7 products)
| Product Type | Total Volume | Legal Volume | Illicit Volume | Estimated Stamps | Pack/Bottle Size |
|---|---|---|---|---|---|
| Beer | 2,094M | - | - | 4,187M | 0.500L |
| Cider and perry | 58,927K | - | - | 78,569K | 0.750L |
| Cigarettes | 20,054M | 13,246M | 6,808M | 662M | 20 sticks/pack |
| Fine-cut tobacco | 357M | - | - | 9M | 40 sticks/pack |
| Ready to drink | 302,502K | - | - | 687,503K | 0.440L |
| Spirits | 175,467K | - | - | 233,955K | 0.750L |
| Wine | 641M | - | - | 855M | 0.750L |
2019 (7 products)
| Product Type | Total Volume | Legal Volume | Illicit Volume | Estimated Stamps | Pack/Bottle Size |
|---|---|---|---|---|---|
| Beer | 2,350M | - | - | 4,700M | 0.500L |
| Cider and perry | 57,892K | - | - | 77,190K | 0.750L |
| Cigarettes | 32,429M | 22,908M | 9,520M | 1,145M | 20 sticks/pack |
| Fine-cut tobacco | 709M | - | - | 18M | 40 sticks/pack |
| Ready to drink | 152,324K | - | - | 346,191K | 0.440L |
| Spirits | 166,322K | - | - | 221,763K | 0.750L |
| Wine | 616M | - | - | 822M | 0.750L |