Tobacco Market
PUBLISHED: 2023 ID: SMRC22733
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Tobacco Market

Tobacco Market Forecasts to 2028 - Global Analysis By Product (Cigarettes, Smokeless, Cigars & Cigarillos, Next Generation Products, Waterpipes, Kretek, Snuff, Non Cigarette Tobacco, Electronic Cigarette, Smoking Tobacco, Raw Tobacco and Other Products), By Type (Burley, Virginia, Nicotiana rustica, Oriental and Other Types), By Distribution Channel, By Packaging Type and By Geography

4.1 (75 reviews)
4.1 (75 reviews)
Published: 2023 ID: SMRC22733

This report covers the impact of COVID-19 on this global market
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Years Covered

2020-2028

Estimated Year Value (2022)

US $310.3 BN

Projected Year Value (2028)

US $452.8 BN

CAGR (2022 - 2028)

6.5%

Regions Covered

North America, Europe, Asia Pacific, South America, and Middle East & Africa

Countries Covered

US, Canada, Mexico, Germany, UK, Italy, France, Spain, Japan, China, India, Australia, New Zealand, South Korea, Rest of Asia Pacific, South America, Argentina, Brazil, Chile, Middle East & Africa, Saudi Arabia, UAE, Qatar, and South Africa

Largest Market

Asia Pacific

Highest Growing Market

North America


According to Stratistics MRC, the Global Tobacco Market is accounted for $310.3 billion in 2022 and is expected to reach $452.8 billion by 2028 growing at a CAGR of 6.5% during the forecast period. Native to the Americas, tobacco was formerly among the most significant crops raised by American farmers. It is one of the most commonly used substances in the world. Any plant in the genus Nicotiana, particularly the native tropical American Nicotiana tabacum, is referred to as tobacco. These plants are widely cultivated for their leaves, which are dried and processed primarily for use in pipes, cigarettes, and cigars. In addition, it is crushed to make snuff, dipping tobacco, and other unique preparations. It is also sliced to produce chewing tobacco. The demand has been sustained by the rising smoking rates in Asia and Africa's developing nations.

According to Center for Disease Control and Prevention, national public health agency, in 2019, approximately 14 of every 100 adults aged 18 years or older in the U.S smoked cigarettes. This means nearly 34.1 million adults in the United States smoke cigarettes.



Market Dynamics:

Driver:

People's tendency to use tobacco products

In the projected period, the market for tobacco is anticipated to be driven by rising millennial usage of tobacco products such as cigarettes, cigars, and oral nicotine due to societal influence, anxiety, depression, and inferiority complexes being prevalent. Oral nicotine use and cigarette smoking are growing increasingly popular. Moreover, many smokers succumb to addiction as a consequence of the impact of their surroundings and circle of friends. It is projected that this aspect will accelerate market expansion in the upcoming years.

Restraint:

Increased health awareness of tobacco's adverse implications to limit the market

In the anticipated time frame, market growth for tobacco goods is projected to be constrained by the adoption of a healthy lifestyle and growing public awareness of the negative effects of tobacco use. To highlight the harmful consequences of tobacco on the consumer's health, non-profit organisations, the government, local authorities, and clubs produce an array of plays, campaigns, advertisements, road shows, and skits. Due to this, a lot of individuals have stopped smoking and using tobacco. As a result, it is predicted that this initiative will negatively impact market growth.

Opportunity:

Growing demand for new tobacco flavours

In the coming years, it is anticipated that ongoing innovation and the launch of new tobacco products and flavours will accelerate market growth. To meet client expectations and create new flavours and textures for tobacco products, tobacco manufacturing businesses invest in their research and development efforts. Also, various new tobacco sales outlets have opened in numerous locations, which is expected to further boost the demand for tobacco products within the anticipated time frame.

Threat:

Smoking of tobacco hindering the market growth

The stimulant nicotine, which is found in tobacco smoke, induces severe chemical and physical dependence. Nicotine is a neurotoxin, a vasoconstrictor, and a type I pesticide. The effects are particularly severe when one inhales cigarette smoke. Several studies have shown that nicotine typically leaves the body in 2–3 days. Physical and psychological problems, however, have a tendency to persist for a longer time. Poisons are found in tobacco. There are around 4000 chemicals in tobacco, 100 of which are recognised carcinogens and 63 of which are known poisons. Most people agree that tobacco's most harmful ingredient is nicotine.

Covid-19 Impact:

Since 2019, the COVID-19 pandemic's prevalence has had an adverse impact on the expansion of the market for tobacco products. The tobacco manufacturers are unable to obtain raw materials for the production of tobacco products because governments throughout the world have imposed stringent restrictions on travel and transportation. Because of this, the market for tobacco products has decreased. The entire closure of a number of businesses and convenience stores has also had a significant impact on tobacco product sales. Due to the closure of various enterprises owing to the outbreak, tobacco product production has also decreased.

The cigar & cigarillos segment is expected to be the largest during the forecast period

The cigar & cigarillos segment is anticipated to have the largest market share in the global market and generate the highest revenue during the forecast period, as this growth is attributable to the manufacturing companies' constant development of novel cigar products with unique flavours like chocolate and clove to attract customers. Also, a number of brand-new cigar stores are scheduled to open in a variety of places, which is anticipated to accelerate the market expansion of the category in the upcoming years.

The paper boxes segment is expected to have the highest CAGR during the forecast period

The segment for paper boxes had the highest CAGR and is anticipated to continue to grow over the projection period. Paper box packaging is becoming more common in the packaging sector. It is gaining popularity in many locations since it is both cost- and environmentally-friendly. Due to increasing concerns about the non-biodegradable nature of plastic and metal packaging, manufacturers strongly favour paper box packaging. For instance, Wisconsin-based packaging company Prairie Industries Holdings has agreed to purchase Sonaco's Europe contract packaging business for $120 million in cash in October 2020. As a result of this purchase, the company was able to enhance its customer offerings.

Region with largest share:

At the highest level, among nations like China and India, Asia-Pacific is one of the world's top producers and users of tobacco. Due to its extensive brand range, nationwide distribution, and market dominance in the Asia Pacific region, the market in this region is expected to dominate the largest market share over the prediction period. ITC is one of the major players in the cigarette industry. As tobacco firms are unable to advertise, the majority of them rely on broad distribution and technological advancements, such as ITC, to maintain sales. The rules in nations like India, for instance, prohibiting the use of tobacco products in public spaces, as well as the increasing accessibility of tobacco products in modern retail stores in the region, are active drivers of the expansion of the Asia-Pacific tobacco market.

Region with highest CAGR:

Due to consumers' busy lives and long work hours, North America is expected to experience the highest growth in the region's cigarette demand over the projection period. This is one of the major factors boosting the demand for cigarettes in the region. Adult pubs and gatherings have recently adopted new trends, making smoking more prevalent because it has become trendy. Additionally, expanding their product offerings and promoting tobacco use in North America are two ways businesses are responding to shifting customer demand.



Key players in the market

Some of the key players in Tobacco market include Imperial Brands, Scandinavian Tobacco Group A/S, British American Tobacco, Altria Group, Inc, China Tobacco, Japan Tobacco Inc., Swedish Match AB, ITC Limited, Swisher, PT Gudang Garam Tbk, KT&G Corp, Philip Morris Products S.A., Eastern Company SAE, VST Industries Ltd, Kothari Products Ltd, Godfrey Phillips India Ltd, Golden Tobacco Company Ltd. and NTC Industries Ltd.

Key Developments:

In February 2022, Reynolds American Inc. - a subsidiary of BAT group and U.S. parent company R.J. Reynolds announced a partnership with the National Association of Convenience Stores (NACS) and Conexxus as a sponsor of TruAge – a new digital solution that helps to enhance the current age-verification system with keeping users privacy at mind.

In July 2021, Japan Tobacco Inc. (JT) declared the official introduction of Ploom X, its next-generation heated tobacco device, on August 17, 2021. Ploom X will steadily be made accessible across Japan, inclusive of convenience stores and chosen tobacco retail stores.

In May 2021, Altria Group Inc. announced to continue its investment in non-combustible tobacco products and acquired the remaining 20% of the Burger Sohne Holdings AG, Oral nicotine pouch global business, for approximately $250 million. Altria entered the oral nicotine pouch category in June 2019 with 80% of Burger Sohne Holdings AG.

Products Covered:
• Cigarettes
• Smokeless
• Cigars & Cigarillos
• Next Generation Products
• Waterpipes
• Kretek
• Snuff
• Non Cigarette Tobacco
• Electronic Cigarette
• Smoking Tobacco
• Raw Tobacco
• Other Products

Types Covered:
• Burley
• Virginia
• Nicotiana rustica
• Oriental
• Other Types

Distribution Channels Covered:
• Store Based Retailing
• Non Store Retailing
• Convenience Stores
• E Commerce Websites
• Specialty Stores
• Supermarket/Hypermarket
• Online Sales Channel
• Offline
• Other Distribution Channels

Packaging Types Covered:
• Paper Box
• Paper
• Jute
• Plastic
• Other Packaging Types

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan
o China
o India
o Australia
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances

Table of Contents

1 Executive Summary

2 Preface
2.1 Abstract
2.2 Stake Holders
2.3 Research Scope
2.4 Research Methodology
2.4.1 Data Mining
2.4.2 Data Analysis
2.4.3 Data Validation
2.4.4 Research Approach
2.5 Research Sources
2.5.1 Primary Research Sources
2.5.2 Secondary Research Sources
2.5.3 Assumptions

3 Market Trend Analysis
3.1 Introduction
3.2 Drivers
3.3 Restraints
3.4 Opportunities
3.5 Threats
3.6 Product Analysis
3.7 Emerging Markets
3.8 Impact of Covid-19

4 Porters Five Force Analysis
4.1 Bargaining power of suppliers
4.2 Bargaining power of buyers
4.3 Threat of substitutes
4.4 Threat of new entrants
4.5 Competitive rivalry

5 Global Tobacco Market, By Product
5.1 Introduction
5.2 Cigarettes
5.3 Smokeless
5.3.1 Chewing Tobacco
5.3.2 Dissolvable Tobacco
5.3.3 Dipping Tobacco
5.4 Cigars & Cigarillos
5.5 Next Generation Products
5.6 Waterpipes
5.7 Kretek
5.8 Snuff
5.9 Non Cigarette Tobacco
5.10 Electronic Cigarette
5.11 Smoking Tobacco
5.12 Raw Tobacco
5.13 Other Products

6 Global Tobacco Market, By Type
6.1 Introduction
6.2 Burley
6.3 Virginia
6.4 Nicotiana rustica
6.5 Oriental
6.6 Other Types

7 Global Tobacco Market, By Distribution Channel
7.1 Introduction
7.2 Store Based Retailing
7.3 Non Store Retailing
7.4 Convenience Stores
7.5 E Commerce Websites
7.6 Specialty Stores
7.7 Supermarket/Hypermarket
7.8 Online Sales Channel
7.9 Offline
7.10 Other Distribution Channels

8 Global Tobacco Market, By Packaging Type
8.1 Introduction
8.2 Paper Box
8.3 Paper
8.4 Jute
8.5 Plastic
8.6 Other Packaging Types

9 Global Tobacco Market, By Geography
9.1 Introduction
9.2 North America
9.2.1 US
9.2.2 Canada
9.2.3 Mexico
9.3 Europe
9.3.1 Germany
9.3.2 UK
9.3.3 Italy
9.3.4 France
9.3.5 Spain
9.3.6 Rest of Europe
9.4 Asia Pacific
9.4.1 Japan
9.4.2 China
9.4.3 India
9.4.4 Australia
9.4.5 New Zealand
9.4.6 South Korea
9.4.7 Rest of Asia Pacific
9.5 South America
9.5.1 Argentina
9.5.2 Brazil
9.5.3 Chile
9.5.4 Rest of South America
9.6 Middle East & Africa
9.6.1 Saudi Arabia
9.6.2 UAE
9.6.3 Qatar
9.6.4 South Africa
9.6.5 Rest of Middle East & Africa

10 Key Developments
10.1 Agreements, Partnerships, Collaborations and Joint Ventures
10.2 Acquisitions & Mergers
10.3 New Product Launch
10.4 Expansions
10.5 Other Key Strategies

11 Company Profiling
11.1 Imperial Brands
11.2 Scandinavian Tobacco Group A/S
11.3 British American Tobacco
11.4 Altria Group, Inc
11.5 China Tobacco
11.6 Japan Tobacco Inc.
11.7 Swedish Match AB
11.8 ITC Limited
11.9 Swisher
11.10 PT Gudang Garam Tbk
11.11 KT&G Corp
11.12 Philip Morris Products S.A.
11.13 Eastern Company SAE
11.14 VST Industries Ltd
11.15 Kothari Products Ltd
11.16 Godfrey Phillips India Ltd
11.17 Golden Tobacco Company Ltd.
11.18 NTC Industries Ltd

List of Tables
1 Global Tobacco Market Outlook, By Region (2020-2028) ($MN)
2 Global Tobacco Market Outlook, By Product (2020-2028) ($MN)
3 Global Tobacco Market Outlook, By Cigarettes (2020-2028) ($MN)
4 Global Tobacco Market Outlook, By Smokeless (2020-2028) ($MN)
5 Global Tobacco Market Outlook, By Chewing Tobacco (2020-2028) ($MN)
6 Global Tobacco Market Outlook, By Dissolvable Tobacco (2020-2028) ($MN)
7 Global Tobacco Market Outlook, By Dipping Tobacco (2020-2028) ($MN)
8 Global Tobacco Market Outlook, By Cigars & Cigarillos (2020-2028) ($MN)
9 Global Tobacco Market Outlook, By Next Generation Products (2020-2028) ($MN)
10 Global Tobacco Market Outlook, By Waterpipes (2020-2028) ($MN)
11 Global Tobacco Market Outlook, By Kretek (2020-2028) ($MN)
12 Global Tobacco Market Outlook, By Snuff (2020-2028) ($MN)
13 Global Tobacco Market Outlook, By Non Cigarette Tobacco (2020-2028) ($MN)
14 Global Tobacco Market Outlook, By Electronic Cigarette (2020-2028) ($MN)
15 Global Tobacco Market Outlook, By Smoking Tobacco (2020-2028) ($MN)
16 Global Tobacco Market Outlook, By Raw Tobacco (2020-2028) ($MN)
17 Global Tobacco Market Outlook, By Other Products (2020-2028) ($MN)
18 Global Tobacco Market Outlook, By Type (2020-2028) ($MN)
19 Global Tobacco Market Outlook, By Burley (2020-2028) ($MN)
20 Global Tobacco Market Outlook, By Virginia (2020-2028) ($MN)
21 Global Tobacco Market Outlook, By Nicotiana rustica (2020-2028) ($MN)
22 Global Tobacco Market Outlook, By Oriental (2020-2028) ($MN)
23 Global Tobacco Market Outlook, By Other Types (2020-2028) ($MN)
24 Global Tobacco Market Outlook, By Distribution Channel (2020-2028) ($MN)
25 Global Tobacco Market Outlook, By Store Based Retailing (2020-2028) ($MN)
26 Global Tobacco Market Outlook, By Non Store Retailing (2020-2028) ($MN)
27 Global Tobacco Market Outlook, By Convenience Stores (2020-2028) ($MN)
28 Global Tobacco Market Outlook, By E Commerce Websites (2020-2028) ($MN)
29 Global Tobacco Market Outlook, By Specialty Stores (2020-2028) ($MN)
30 Global Tobacco Market Outlook, By Supermarket/Hypermarket (2020-2028) ($MN)
31 Global Tobacco Market Outlook, By Online Sales Channel (2020-2028) ($MN)
32 Global Tobacco Market Outlook, By Offline (2020-2028) ($MN)
33 Global Tobacco Market Outlook, By Other Distribution Channels (2020-2028) ($MN)
34 Global Tobacco Market Outlook, By Packaging Type (2020-2028) ($MN)
35 Global Tobacco Market Outlook, By Paper Box (2020-2028) ($MN)
36 Global Tobacco Market Outlook, By Paper (2020-2028) ($MN)
37 Global Tobacco Market Outlook, By Jute (2020-2028) ($MN)
38 Global Tobacco Market Outlook, By Plastic (2020-2028) ($MN)
39 Global Tobacco Market Outlook, By Other Packaging Types (2020-2028) ($MN)

Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.

List of Figures

RESEARCH METHODOLOGY


Research Methodology

We at Stratistics opt for an extensive research approach which involves data mining, data validation, and data analysis. The various research sources include in-house repository, secondary research, competitor’s sources, social media research, client internal data, and primary research.

Our team of analysts prefers the most reliable and authenticated data sources in order to perform the comprehensive literature search. With access to most of the authenticated data bases our team highly considers the best mix of information through various sources to obtain extensive and accurate analysis.

Each report takes an average time of a month and a team of 4 industry analysts. The time may vary depending on the scope and data availability of the desired market report. The various parameters used in the market assessment are standardized in order to enhance the data accuracy.

Data Mining

The data is collected from several authenticated, reliable, paid and unpaid sources and is filtered depending on the scope & objective of the research. Our reports repository acts as an added advantage in this procedure. Data gathering from the raw material suppliers, distributors and the manufacturers is performed on a regular basis, this helps in the comprehensive understanding of the products value chain. Apart from the above mentioned sources the data is also collected from the industry consultants to ensure the objective of the study is in the right direction.

Market trends such as technological advancements, regulatory affairs, market dynamics (Drivers, Restraints, Opportunities and Challenges) are obtained from scientific journals, market related national & international associations and organizations.

Data Analysis

From the data that is collected depending on the scope & objective of the research the data is subjected for the analysis. The critical steps that we follow for the data analysis include:

  • Product Lifecycle Analysis
  • Competitor analysis
  • Risk analysis
  • Porters Analysis
  • PESTEL Analysis
  • SWOT Analysis

The data engineering is performed by the core industry experts considering both the Marketing Mix Modeling and the Demand Forecasting. The marketing mix modeling makes use of multiple-regression techniques to predict the optimal mix of marketing variables. Regression factor is based on a number of variables and how they relate to an outcome such as sales or profits.


Data Validation

The data validation is performed by the exhaustive primary research from the expert interviews. This includes telephonic interviews, focus groups, face to face interviews, and questionnaires to validate our research from all aspects. The industry experts we approach come from the leading firms, involved in the supply chain ranging from the suppliers, distributors to the manufacturers and consumers so as to ensure an unbiased analysis.

We are in touch with more than 15,000 industry experts with the right mix of consultants, CEO's, presidents, vice presidents, managers, experts from both supply side and demand side, executives and so on.

The data validation involves the primary research from the industry experts belonging to:

  • Leading Companies
  • Suppliers & Distributors
  • Manufacturers
  • Consumers
  • Industry/Strategic Consultants

Apart from the data validation the primary research also helps in performing the fill gap research, i.e. providing solutions for the unmet needs of the research which helps in enhancing the reports quality.


For more details about research methodology, kindly write to us at info@strategymrc.com

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