To no one’s surprise, a new report on the state of the tobacco industry showed continued decline in the sales volumes of traditional cigarettes. That drop was less steep than expected; however, by comparison, Altria Group‘s (MO +2.73%) business looked steadier than its peers’. The storied cigarette maker’s shares rose nearly 3% on Tuesday.

Continued declines

Barclays tracks data from the U.S. tobacco market, and its latest analysis from the four weeks ended April 18 produced some interesting numbers. Citing data from outside sources (specifically MSA and Nielsen), the bank found that cigarette volumes declined by beween 4.3% and 5.5% year-over-year. So far in 2026, volumes are down 5.1% from the corresponding period in 2025.

However, that latter figure was better than Barclays’ estimate of a 7.3% decline. This indicates that the recent erosions, at least as far as the company’s estimates are concerned, are less severe than many believe.

Also, these findings indicated that Altria is suffering less than its peers. Barclays wrote that the incumbent’s traditional cigarette volumes decreased by 4.7% over the covered four-week period. Those of British American Tobacco tumbled by 9.3%, while Imperial Brands fell by 9%.

While traditional tobacco products remain the bedrock of many businesses in the industry, certain — but not all — next-generation offerings are proving to be popular. Barclays found that nicotine pouches saw robust volume growth of 22%. On the flip side, e-cigarette sales fell by a steep 17% year over year.

Altria Group

Today’s Change

(2.73%) $1.80

Current Price

$67.80

A dividend darling

Altria has been somewhat hit-or-miss with its “alternative” tobacco offerings, but for the most part, I think it’s on the right path. Still, the more distance it can put between its business and that ever-shrinking traditional market, the better. Meanwhile, it remains quite a compelling income stock for the dividend aficionados among us.