Tobacco Market Size
| Study Period | 2019- 2029 |
| Base Year For Estimation | 2023 |
| CAGR (2024 - 2029) | 3.75 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Middle-East and Africa |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Tobacco Market Analysis
The Tobacco Market is expected to register a CAGR of 3.75% during the forecast period.
Increasing smoking prevalence and stable demand for tobacco products are the key factors driving growth in the global tobacco market. Tobacco is one of the significant sources of tax revenue for governments worldwide. Owing to lax regulatory environments, developing economies are now fuelling growth in the market. Cigarettes have been observed to be the most popular tobacco product, owing to various factors such as convenience, the experience offered, and cost-effectiveness, among others. The tobacco market is consolidated with the presence of a few large players accounting for a significant share worldwide.
With the innovation in tobacco products, manufacturers are launching the product on a global scale to expand the company's revenues which in turn is gaining traction to boost the growth of the global tobacco market. As the population has become more aware of the harmful effects of tobacco consumption, tobacco consumption has been declining in developed and wealthy countries across the globe. Companies are introducing new products that are significantly less harmful than conventional products to maintain demand. New nicotine products referred to as new, alternative, or novel tobacco products that have entered the market are aiding the growth of the market across the globe.
Tobacco Market Trends
Rising Popularity for Low Tar, Nicotine Products
To reduce the use of conventional/combustible cigarettes, consumers in the region are increasingly using e-cigarettes, snuff, and low-tar cigarette products concurrently. Additionally, due to the fact that e-cigarettes mimic the experience of smoking conventional/combustible cigarettes, consumers are significantly using them to satisfy their nicotine addiction, which is driving the market. Additionally, with the growing popularity of vaping devices, flavor and fragrance vendors are introducing a wide variety of e-liquids to attract consumers. Different flavors, such as menthol, mint, chocolate, cola, bubble gum, and fusions of other fruits and flavoring substances, are luring many consumers to adopt these e-cigarette devices.
Furthermore, e-cigarettes, snus, and other products have lower levels of carcinogens compared to combustible smokers. In addition, increasing cases of tobacco-related cancer globally, most of which are linked to cigarette smoking, have led the public to seek alternatives. Hence, increasing health concerns, especially among the smoking population, are driving the market growth of less harmful tobacco products.
Asia-Pacific Holds a Significant Share in the Market
Asia-Pacific is one of the largest producers and consumers of tobacco globally, led by countries such as China and India. ITC is one of the biggest players in the Asian market in terms of cigarettes on the back of countrywide distribution and a large portfolio of brands. As cigarette companies cannot advertise, most rely on wide distribution and innovations to retain sales, including ITC. The regulations in countries such as India, for instance, the ban on the consumption of tobacco products in public places and also the rising availability of tobacco products in modern retail outlets in the region, are factors that are actively driving the growth of the tobacco market in the Asia-Pacific region. Smoking in Japan, though historically less restricted by law than in many other nations, has significantly changed in recent years. However, Japanese players implemented the TAPSO vending machine system, which required that people purchasing cigarettes from vending machines have identification cards verifying their age.
Tobacco Industry Overview
The global tobacco market is consolidated and comprises a few large players who hold most of the share in the market. Some of the major players in the market are Philip Morris International Inc., British American Tobacco plc, Imperial Brands plc, Eastern Company SAE, and ITC Limited, among others. With increased industry regulation worldwide, the launching of new products, mergers, and acquisitions have also increased, which are the major cause of acquiring a huge share in the market. The manufacturer is majorly concentrating on enhancing their product quality to obtain a competitive edge over other players in the market. Advanced distribution network and manufacturing expertise give an upper edge to the manufacturers to expand their range of products across the world.
Tobacco Market Leaders
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Philip Morris International Inc.
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British American Tobacco plc
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Imperial Brands plc
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Eastern Company SAE
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ITC Limited
*Disclaimer: Major Players sorted in no particular order
Tobacco Market News
- In November 2022, With its mix of specially designed tobacco sticks, BLENDS, Philip Morris International Inc. launched its latest heat-not-burn tobacco heating system, BONDS by IQOS.
- In July 2022, In Tokyo, Japan, BAT announced the launch of gloTM hyper X2, its latest innovation from the fast-growing global heated tobacco brand gloTM. Featuring new, innovative, user-friendly features, the new 'barrel styling' product offers a new, innovative design shaped by consumer insights.
- In August 2021, Ploom X, a next-generation heated tobacco device was launched in Japan by JT Group. The Ploom X product is available in convenience stores and select tobacco retail outlets throughout Japan.
Tobacco Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions & Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHT
4.1 Market Drivers
4.2 Market Restraints
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Buyers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitutes
4.3.5 Degree of Competition
5. MARKET SEGMENTATION
5.1 Product Type
5.1.1 Cigarettes
5.1.2 Cigars and Cigarillos
5.1.3 Waterpipes
5.1.4 Smokeless Devices
5.2 Distribution Channel
5.2.1 Supermarket/Hypermarket
5.2.2 Convenience Stores
5.2.3 Specialty Stores
5.2.4 Other Distribution Channels
5.3 Geography
5.3.1 North America
5.3.1.1 United States
5.3.1.2 Canada
5.3.1.3 Mexico
5.3.1.4 Rest of North America
5.3.2 Europe
5.3.2.1 United Kingdom
5.3.2.2 Germany
5.3.2.3 France
5.3.2.4 Italy
5.3.2.5 Russia
5.3.2.6 Spain
5.3.2.7 Rest of Europe
5.3.3 Asia-Pacific
5.3.3.1 China
5.3.3.2 Japan
5.3.3.3 India
5.3.3.4 Australia
5.3.3.5 Rest of Asia-Pacific
5.3.4 South America
5.3.4.1 Brazil
5.3.4.2 Argentina
5.3.4.3 Rest of South America
5.3.5 Middle-East and Africa
5.3.5.1 South Africa
5.3.5.2 Saudi Arabia
5.3.5.3 Rest of Middle-East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Most Adopted Strategies
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 China National Tobacco Corporation
6.3.2 Philip Morris International Inc.
6.3.3 British American Tobacco plc
6.3.4 Japan Tobacco Inc.
6.3.5 Imperial Brands plc
6.3.6 Altria Group, Inc.
6.3.7 PT Gudang Garam Tbk
6.3.8 Eastern Company SAE
6.3.9 KT&G Corp
6.3.10 ITC Limited
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Tobacco Industry Segmentation
Tobacco is a leaf derived from plants, which are plucked up, dried, processed, and fermented, then used in tobacco products. The global tobacco market is segmented by product type, distribution channel, and geography. By product type, the market is segmented into Cigarettes, Cigars, & Cigarillos, Waterpipes, and Smokeless Devices. By distribution channel, the market is segmented into Supermarkets/Hypermarkets, Convenience Stores, Specialty Stores, and Other Distribution channels. Geographically the market is segmented into North America, Europe, Asia-Pacific, South America, and Middle East & Africa. For each segment, the market sizing and forecasts have been done based on value (in USD Million).
| Product Type | |
| Cigarettes | |
| Cigars and Cigarillos | |
| Waterpipes | |
| Smokeless Devices |
| Distribution Channel | |
| Supermarket/Hypermarket | |
| Convenience Stores | |
| Specialty Stores | |
| Other Distribution Channels |
| Geography | |||||||||
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Tobacco Market Research FAQs
What is the current Tobacco Market size?
The Tobacco Market is projected to register a CAGR of 3.75% during the forecast period (2024-2029)
Who are the key players in Tobacco Market?
Philip Morris International Inc., British American Tobacco plc, Imperial Brands plc, Eastern Company SAE and ITC Limited are the major companies operating in the Tobacco Market.
Which is the fastest growing region in Tobacco Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Tobacco Market?
In 2024, the Middle-East and Africa accounts for the largest market share in Tobacco Market.
What years does this Tobacco Market cover?
The report covers the Tobacco Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Tobacco Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the key factors driving the Tobacco Industry?
The key factors driving the Tobacco Industry are a) The addictive nature of nicotine creates a steady consumer base and drives repeat purchases b) Introduction of new tobacco products like heated tobacco devices or flavored variants targets specific consumer segments thereby catering to evolving preferences
Tobacco Industry Report
The global tobacco market is projected to expand, driven by increasing tobacco consumption in developing regions, the introduction of new products, and targeted marketing campaigns aimed at specific demographic or racial groups. Despite growing health risk awareness, the substantial global consumer base ensures a steady demand for tobacco products. The industry is also experiencing a surge in Next-Generation Products (NGPs), which are less harmful and expected to become the fastest-growing segment in the market. The convenience offered by the online distribution channel is also anticipated to contribute significantly to market growth. Even with efforts to reduce tobacco consumption, the market remains robust due to factors like the addictive properties of nicotine and the large global consumer base.
The industry analysis indicates that the tobacco market is characterized by significant market growth, with industry size and industry sales being key indicators of its robustness. The industry reports and industry research highlight the importance of industry information and industry statistics in understanding market trends and market data. The market forecast and market predictions suggest that market leaders will continue to dominate, while the market segmentation provides insights into the various segments contributing to the market value.
The industry outlook remains positive, supported by comprehensive market overview and market review. The market outlook and market value are expected to remain strong, driven by continuous innovation and market demand. The report example and report pdf provide detailed insights into the market structure and dynamics, aiding research companies in their analysis and strategy formulation.
Overall, the industry trends and growth rate are indicative of a thriving market, with industry reports and market data playing a crucial role in shaping the future of the tobacco industry. The market forecast and market predictions underscore the importance of staying informed about industry developments and market changes.
