The Marketing Bill for Cigarettes

Excerpts from the report: U. S. consumer expenditures for cigarettes declined slightly in 1964 after moving upward steadily for many years. The $7.1 billion spent in 1964 was 2 1/3 times 1947 expenditures of $3.0 billion. This increase reflected an upward trend in both consumption and prices. Cigarette consumption increased by about one-half during the period and average retail prices by almost three-fifths. Increases in population and consumer incomes contributed to the growth in consumption. The bill for marketing cigarettes smoked in the United States totaled $3.2 billion in 1964 compared with $1.2 billion in 1947. It represented 45 percent of consumer expenditures in 1964 and 38 percent in 1947. This marketing bill is the difference between the farm value and consumer expenditures for cigarettes less excise taxes. It is composed of the manufacturing bill and the wholesaling-retailing bill. The manufacturing bill increased by a faster rate than the wholesaling-retailing bill from 1947 to 1964. By 1964, it accounted for 54 percent of the marketing bill compared with 50 percent in 1947.