The price of cigarettes jumped Friday by more than ¥100 per pack as a new tobacco tax kicked in, raising industry fears that sales will drop further as consumers become more health-conscious.

Japan Tobacco Inc., which holds around 65 percent of the market, predicts that the unprecedented hike will contribute to a 25 percent year-on-year reduction in domestic tobacco sales for the next 12 months.

In its first tax-linked price rise since July 2006, JT raised the price of a pack of its Mild Seven brand to ¥410 and of Seven Stars to ¥440, both from ¥300, while Philip Morris Japan KK raised the price of its Marlboro cigarettes to ¥440 from ¥320.