IWCI Institut für Wachstumschancen und Innovation
All insights Study · Health economics

Study: Tobacco harm reduction in Germany

In short

The study calculates how much disease burden and direct healthcare costs in Germany fall when smokers switch to products without tobacco combustion such as vapes. Result for 2026 to 2040: around €15bn in savings in the conservative scenario, around €48bn in the realistic one and up to €75bn in the optimistic one.

200,000synthetic life courses in the microsimulation
€15bn to €75bnlower direct healthcare costs 2026 to 2040, three scenarios
8 to 10%fewer tobacco related cases even with moderate switching
up to €3bnsavings per year in the moderate switching scenario

Results

ScenarioSavings in direct healthcare costs 2026 to 2040
Conservativearound €15bn
Realisticaround €48bn
Optimisticup to €75bn

The savings cover direct healthcare costs only: hospital stays, treatment and care. Indirect costs such as lost working time are not included.

Small changes already matter: if 10 percent of smokers switch to vaping or other tools each year over three years, the model shows 8 to 10 percent fewer tobacco related cases and up to €3bn lower direct healthcare costs per year.

Three key messages

  • Combustion does the damage, not primarily nicotine. Nicotine is not harmless. Most of the harm, however, comes from burning tobacco. International biomarker data analysed in the study show 60 to 95 percent fewer key toxicants after switching to e cigarettes.
  • Harm reduction complements quitting, it does not replace it. Full abstinence remains the goal. Tobacco harm reduction addresses adults who would otherwise keep smoking.
  • Regulation should be proportionate to risk. A clear distinction between cigarettes and non combustible products, binding quality standards, ingredient transparency and strict youth protection.

Method

The basis is a health economic microsimulation of 200,000 synthetic life courses, modelling scenarios of switching from smoking to vaping for 2026 to 2040. It is complemented by a systematic evidence review, structured expert interviews and sensitivity analyses. Academic quality assurance was provided by IU International University of Applied Sciences.

Fact sheet

TitleSchadensminimierung beim Tabakkonsum in Deutschland (Tobacco harm reduction in Germany), in German
Client and fundingHG Innovation Limited (Heaven Gifts, brand ELFBAR)
Conducted byIWCI, independently, with IU International University of Applied Sciences
PresentedBerlin, 15 April 2026
AuthorsDominic Multerer (study lead, IWCI), Prof. Dr. Florian Hummel (academic quality assurance, IU), Dr. rer. nat. Bernhard Schropp (microsimulation)

How to cite

Multerer, D.; Hummel, F.; Schropp, B. (2026): Schadensminimierung beim Tabakkonsum in Deutschland. Institut für Wachstumschancen und Innovation (IWCI) with IU Internationale Hochschule. Berlin.

FAQ

Who commissioned and paid for the study?

HG Innovation Limited, also known as Heaven Gifts, owner of the ELFBAR brand. IWCI conducted it independently, together with IU International University of Applied Sciences.

Which costs are included in the €15bn to €75bn?

Direct healthcare costs only: hospital stays, treatment and care in the period 2026 to 2040.

What is a microsimulation?

A model that simulates many individual life courses, here 200,000. It shows how smoking behaviour, disease and costs develop over years in different scenarios.

See commissioned studies

Let's talk about your question.

30 minutes, no obligation. Afterwards you know whether a study, a review or a conversation helps.