Trusted Business Insights answers what are the scenarios for growth and recovery and whether there will be any lasting structural impact from the unfolding crisis for the Tobacco market.
Trusted Business Insights presents an updated and Latest Study on Tobacco Market 2020-2029. The report contains market predictions related to market size, revenue, production, CAGR, Consumption, gross margin, price, and other substantial factors. While emphasizing the key driving and restraining forces for this market, the report also offers a complete study of the future trends and developments of the market. The report further elaborates on the micro and macroeconomic aspects including the socio-political landscape that is anticipated to shape the demand of the Tobacco market during the forecast period (2020-2029).
It also examines the role of the leading market players involved in the industry including their corporate overview, financial summary, and SWOT analysis.
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Report Overview: Tobacco Market
The global tobacco market size was valued at USD 730.90 billion in 2020 and looks set to grow at a compound annual growth rate (CAGR) of 2.9% from 2021 to 2027. The market is gaining momentum and witnessing a high demand owing to rising consumer disposable income, increasing number of product launches, and availability of superior-quality products. Increasing consumption of tobacco products among females and students is also fueling market growth. According to the American Lung Association, the use of tobacco products has increased from 28.2 percent to 31.2 percent among high school students from 2002 to 2019 in U.S.
According to the World Health Organizations global report on trend in prevalence of tobacco use published in 2019, the number of male tobacco users in the world was increasing each year during 2000 to 2018. In 2018, the number of users across the globe was found to be 1093 billion.
Marketing and advertisement have also played a crucial role in enhancing the adoption of tobacco products. In 2017, tobacco companies spent USD 9.36 billion on marketing its finished products in U.S. Even though product promotions are restricted to television and radio, some companies are expected to utilize the point-of-sale locations, including convenience stores, grocery stores, gas stations, and pharmacies, for marketing their finished goods. It is estimated that key tobacco marketing firms deploy 96% of their overall marketing budget for point-of-sale marketing.
Packaging of these tobacco products play a integral role in appealing to adolescents and young adults. The industry still has wide leeway in promoting their brands directly on the tobacco product packaging. The industry participants utilize some of the critical marketing tools, including eye-catching designs, attractive colors, and engaging characters during labelling of tobacco products. These initiatives are expected to attract new customers, such as the youth population.
Product Insights: Tobacco Market
Cigarettes led the market and accounted for more than 70.0% share of the global revenue in 2019. According to a research published by the National Survey on Drug Use and Health, 2016, smoking rate is typically high in non-metropolitan areas, along with the Midwestern and Southern regions of U.S. According to the CDC, in 2018, nearly 13.7% of the U.S. adults aged 18 years+ smoked cigarettes. This means an estimated 34.2 million adults were cigarette smokers in U.S.
Flavored cigarettes have been enhancing the popularity of cigarette among the millennials and generation Z. Common flavors preferred among consumers are apple, orange, clove, cinnamon, pineapple, coconut, licorice, coffee, cherry, chocolate, honey, grape, menthol, mint, peach, rum, strawberry, bubble gum, candy, and vanilla.
Next generation products are expected to exhibit the fastest CAGR of 09.6% from 2021 to 2027. Next generation products, such as new forms of e-cigarettes and heated tobacco products, are coming in the market. These products are exhibiting technological innovation and change, which the tobacco industry has not experienced in many decades. Cigarette consumption is growing rapidly in selected markets. E-cigarette sales occur through multiple distribution channels, such as retail stores, vape stores, and online.
Regional Insights: Tobacco Market
Asia Pacific lead the market and accounted for over 35.0% share of global revenue in 2019. China, Philippines, Vietnam, Malaysia, India, Thailand, Bangladesh, and Indonesia make some of the largest markets in the region. According to a research, ˜Recent Trends of Tobacco Use In India published in the Journal of Public Health, in 2019, India had a substantial number of smokeless tobacco users. Furthermore, increased importance of advertising as a key tool for marketing the product forms on social media and satellite television channels is expected to compel buyers to increase their spending on new products.
Middle East and Africa is expected to expand at the fastest CAGR of 3.3% from 2021 to 2027. The product is popular in Egypt, Nigeria, and Qatar and is consumed on a large scale in these countries. Egypt has the largest population of tobacco users in the region. Prevalence of tobacco use and per capita cigarette consumption has been rising steadily for many years and significant numbers of Egyptian adolescents consume tobacco products. Given Egypts relatively low tobacco product prices, significant increases in taxes will reduce the products consumption and its harmful health and economic consequences while generating substantial new revenues.
Key Companies & Market Share Insights: Tobacco Market
Product innovation in terms of launch of non-hazardous products is expected to remain a key success factor for the industry participants over the next few years. For instance, in February 2018, Imperial Brands launched a new brand myblu in U.S., U.K., France, Germany, and Russia. Under this brand name, the company has plans to offer vaping pens, vape accessories, and a heated tobacco device. The manufacturers are expected to increase spending on the establishment of strategic alliances in emerging economies, including China and India, in order to cater to the growing demand among customers who have a high purchasing power. According to the Centers for Disease Control & Prevention, in 2017, manufacturers spent a total of USD 718.32 billion on smokeless tobacco advertising and promotion. A number of electronic products, such as electronic cigarettes, electronic cigars, and electronic pipes, are being introduced in the marketplace. Some of the prominent players in the tobacco market include:
Key companies Profiled: Tobacco Market Report
- Pyxus International, Inc.
- Swedish Match
- ITC Limited
- Altria Group, Inc.
- KT&G Corp.
- PHILIP MORRIS PRODUCTS S.A.
- British American Tobacco
- JT International SA
- Imperial Brands
- Universal Corporation
- Scandinavian Tobacco Group A/S
This report forecasts revenue growth at the global, regional, and country levels and provides an analysis on the latest industry trends and opportunities in each of the sub-segments from 2016 to 2027. For the purpose of this study, Trusted Business Insights has segmented the global tobacco market report on the basis of product and region:
Product Outlook (Revenue, USD Billion, 2016 – 2027)
- Cigars & Cigarillos
- Next Generation Products
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