Tobacco Market Overview
Tobacco Market size is forecast to reach $769.13 billion by 2025, growing at a CAGR of 3.8% during the forecast period 2020-2025. Tobacco, common name of the plant Nicotiana tabacum, contains nicotine, a psychoactive (mind altering) drug that speeds up activity in our central nervous system but has relaxing effects too. Nicotiana tabacum belongs to Solanaceae family. Tobacco is available in many forms, including cigarettes, pipe tobacco, chewing tobacco, and snuff (a powder that is sniffed or put between the lower lip or cheek and gums). Nicotine also is available in non-tobacco products, including gum, patches and other smoking cessation aids. Tobacco contains the highly addictive stimulant alkaloid nicotine as well as harmala alkaloids. Availability of superior quality products of tobacco, rising average disposable income of the masses and critical marketing tactics of key market players are driving the market growth in recent years. In addition, major market development of key players like Pyxus International Inc. and British American Tobacco are additional factors driving the growth of the market.
The report: “Tobacco Market Forecast (2020-2025)”, by IndustryARC, covers an in-depth analysis of the following segments of the Tobacco Market.
By Product: Smokeless Tobacco, Cigarettes, Cigars and Cigarillos, Next Generation Products, Waterpipes, and Others
By Harvest Type: Cigarette tobacco and Non-Cigarette tobacco
By Geography: North America, Europe, Asia-Pacific, and Rest of the World (RoW)
- Asia-Pacific dominated the Tobacco Market in the year 2019 owing to large amount of tobacco cultivation, increase in the consumption of tobacco at a country level and increase in disposable incomes of the population across Asian countries. The Tobacco Market scope for different regions will be provided in the final report.
- Availability of superior quality products of tobacco, rising average disposable income of the masses and critical marketing tactics of key market players is estimated to drive the industry growth during the forecast period 2020-2025.
- Detailed analysis on the Strength, Weakness and Opportunities of the prominent players operating in the market will be provided in the Tobacco Market report.
- Increasing health concerns about tobacco consumption is anticipated to hamper the market growth of the Tobacco Industry.
Product Type - Segment Analysis
Cigarettes held the largest share in the product segment of Tobacco Market in 2019 and are estimated to grow at a CAGR of 3.2% during the forecast period 2020-2025. The growth of this segment is primarily driven by the ever-increasing consumer base of cigarettes from all ages, launch of flavored cigarettes and attractive product launches by key market players. Also, flavored cigarettes held a fair share in the segment, owing to preference among consumers for apple, orange, clove, cinnamon, pineapple, coconut, licorice, coffee, cherry, and other flavored cigarettes. Cigars and cigarillos got the second largest share in the market in 2019, owing to increasing use as success symbol and in occasions by the elite class people. Next generation products are set to be the fastest growing segment and is estimated to register the highest CAGR during the forecast period 2020-2025. Imperial Tobacco, like other tobacco companies, has been investing in tobacco and nicotine products that, unlike cigarettes, show potential for volume growth in developed markets. Products that fall into this category are snus, e-cigarettes, and heated tobacco products.
Harvest Type - Segment Analysis
Non-cigarette tobacco held the major share in the harvest type segment of Tobacco Market in 2019. Social pressures being applied to cigarette use contribute to making non-cigarette tobacco relatively more attractive to those addicted to nicotine. Also, increasing cigarette taxes can make substitution of less taxed tobacco products ever more economically attractive so long as product differentials in tax treatment persist. In recent years, considerable increase in number of exports has been done from countries like India. This has led to considerable increase in market growth in recent years. Non-cigarette Tobacco is forecast to continue growing at the fastest rate with the highest CAGR during the forecast period 2020-2025, owing to growing number of customer base for substitutes of cigarette, and increasing key investments by major market players in product and package designing of Non-cigarette Tobacco.
Geography- Segment Analysis
Asia-Pacific dominates the geography segment of Tobacco market with a share of more than 39.17% in 2019, followed by North America. Large amount of tobacco cultivation, increase in the consumption of tobacco at a global level and increase in disposable incomes of the population across Asian countries have resulted in massive growth of the market in the last decade. North America held the second place in the geography segment share of the market, owing to increasing consumption trends of next generation tobacco products by the young population, shift in consumer preferences for less harmful tobacco and presence of key market players in recent time.
Asia-Pacific is estimated to continue growing at the fastest rate at a higher CAGR during the forecast period 2020-2025. This is owing to increasing tobacco exports by developing countries such as India and increasing consumption trends of new generation products.
Drivers – Tobacco Market
- Increased demand for variety of Tobacco
While demand for tobacco products is not as elastic as demand for many other consumer products, research has consistently demonstrated that increases in the varieties of tobacco products are followed by moderate rise in both the percentage of people smoking and other types of product consumers. Advertising in various interesting tactics have helped in great developments, and proved to be a means to stay competitive and sustain market share. This is set to drive the market growth in the forecast years 2020-2025.
- Rising average disposable income of the masses
In the last decade, people generally have perceived tobacco as an important part of their life. In addition, increasing average disposable income of a majority of the population has resulted in surge in sales of tobacco. This is projected to drive the demand for Tobacco, and consequently help in market growth during the forecast period 2020-2025.
Challenges – Tobacco Market
- Increasing health concerns about tobacco consumption
Tobacco results in a large number of diseases and deaths every year. As a result, the government has taken measures to stop tobacco sales, and therefore, there are various taxes levied on tobacco products. Thus, it is anticipated to hamper the market growth during the forecast period 2020-2025.
Tobacco Industry Outlook
Product launches, mergers and acquisitions, joint ventures and R&D activities are key strategies adopted by players in the Tobacco Market. In 2019, Tobacco Market share is consolidated by the top players present in the market. Tobacco Market top 10 companies are ITC Limited, Pyxus International, Inc., Swedish Match, Altria Group, Inc., KT&G Corp., PHILIP MORRIS PRODUCTS S.A., British American Tobacco, JT International SA, Universal Corporation and Scandinavian Tobacco Group A/S among others.
- In February 2020, Pyxus International Inc. and Louisville-based tobacco products company Turning Point Brands Inc. announced partnership for certain research and testing data in order to form the foundation of some of their respective premarket tobacco product applications prior to submission to the U.S. Food and Drug Administration.
- In September 2017, Swedish Match acquired V2 Tobacco, a privately held smokeless tobacco company, primarily active in Europe.
- In November 2019, British American Tobacco (BAT) announced that it has signed an enhanced partnership deal with McLaren Racing. The partnership offered a global platform to drive awareness of these new category products which had the potential to be less risky than cigarettes for millions of smokers worldwide.
1. Tobacco Market Overview
1.1 Definitions and Scope
2. Tobacco Market- Executive Summary
2.1 Market Revenue and Key Trends by Company
2.2 Key trends by Product
2.3 Key trends by Harvest Type
2.4 Key trends by Geography
3. Tobacco Market – Comparative Analysis
3.1 Product Benchmarking – Key Companies
3.2 Financial Analysis – Key Companies
3.3 Market Value Split by Key Companies
3.4 Patent Analysis – Key Companies
3.5 Pricing Analysis
4. Tobacco Market - Startup Companies Scenario Premium
4.1 Key Startup Company Analysis by
4.1.3 Venture Capital and Funding Scenario
5. Tobacco Market– Industry Market Entry Scenario PremiumPremium
5.1 Regulatory Framework Overview
5.2 New Business and Ease of Doing business index
5.3 Case Studies of Successful Ventures
6. Tobacco Market Forces
6.1 Market Drivers
6.2 Market Constraints/Challenges
6.3 Porters five force model
6.3.1 Bargaining power of suppliers
6.3.2 Bargaining powers of customers
6.3.3 Threat of new entrants
6.3.4 Rivalry among existing players
6.3.5 Threat of substitutes
7. Tobacco Market – Strategic Analysis
7.1 Value Chain Analysis
7.2 Opportunities Analysis
7.3 Market Life Cycle
8. Tobacco Market– By Product (Market Size –$Million/$Billion)
8.1 Smokeless Tobacco
8.3 Cigars and Cigarillos
8.4 Next Generation Products
9. Tobacco Market – By Harvest Type (Market Size –$Million/$Billion)
9.1 Cigarette tobacco
9.2 Non-Cigarette tobacco
10. Tobacco Market - By Geography (Market Size –$Million/$Billion)
10.1 North America
10.2.6 Rest of Europe
10.3.4 South Korea
10.3.5 Australia & New Zealand
10.3.6 Rest of Asia-Pacific
10.4 Rest of the World
10.4.1 Middle East
10.4.3 South America
11. Tobacco Market- Entropy
12. Tobacco Market – Industry/Segment Competition LandscapePremium
12.1 Market Share Analysis
12.1.1 Global Market Share – Key Companies
12.1.2 Market Share by Region– Key companies
12.1.3 Market Share by Countries – Key Companies
12.1.4 Best Practices for Companies
13. Tobacco Market – Key Company List by Country PremiumPremium
14. Tobacco Market Company Analysis
14.1 Company 1
14.2 Company 2
14.3 Company 3
14.4 Company 4
14.5 Company 5
14.6 Company 6
14.7 Company 7
14.8 Company 8
14.9 Company 9
14.10 Company 10
"*Financials for private companies would be provided on a best efforts basis”.