British American Tobacco announced it has lowered its outlook for traditional cigarette sales this year, citing weaker-than-anticipated performance in global industry volumes.

The tobacco company said global industry volumes in its traditional cigarette market would likely be lower than previously expected in 2024. The revision reflects ongoing challenges in the conventional tobacco sector as consumption patterns continue to shift.

Despite the reduced cigarette outlook, British American Tobacco indicated it expects growth in its new-category revenue segment. The company has been investing heavily in alternative tobacco products as part of its strategy to diversify beyond traditional cigarettes.

The outlook adjustment comes as tobacco companies worldwide continue to navigate declining cigarette consumption in many markets, while simultaneously developing and promoting reduced-risk product alternatives to maintain revenue streams.