Increased consumer preference for e-cigarettes over traditional cigarettes, coupled with increasing spending on premium tobacco products is expected to stimulate market trends
Market Size – USD 935.77 Billion in 2020, Market Growth – CAGR of 2.2%, Market Trends- A significant rise in the number of smokers globally.
According to a recent analysis by Reports and Data, the global Tobacco Market size was valued at USD 932.11 Billion in 2020 and is estimated to observe a CAGR of 2.2% through 2028. Introduction of tobacco products with added flavors like menthol, clove and candy coupled with increased consumer preference for e-cigarettes over traditional cigarettes is expected to drive market growth over the forecast period.
Tobacco contains a colourless volatile alkaloid called nicotine, which on consumption in any form constricts peripheral blood vessels, increases, blood pressure, stimulates brain functions, and raises heart rate. The addictive nature of alkaloids makes it hard for smokers to quit cigarettes. Extensive usage of dried tobacco for smoking in cigarettes, cigars, shisha, pipes and as snuff, dipping tobacco, chewing tobacco, and snus is expected to bolster tobacco market size through 2028. However, growing popularity of nicotine replacement therapies with patches, lozenges, gums, and others product may negatively impact the industry growth.
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Further key findings in the report
- On the basis of product type, the next-generation tobacco products will be the fastest-growing segment over the projected timeline owing to increasing consumer preference for less harmful tobacco products over cigarettes.
- The cigarettes segment accounted for a major chunk of the tobacco market share in 2018 and is expected to showcase sustained growth over the analysis period owing to surging demand for flavoured/unflavoured cigarettes across the globe. In addition, high consumption patterns for cigarettes in emerging economies in the APAC region, including Thailand, China, India, and others due to growing young population base in these countries will foster market size through 2028.
- Regionally, Asia Pacific accounted for over 35% of the global tobacco market share in 2018 and is forecast to make significant revenue contribution during the analysis period. The robust growth is stimming from the expansion of consumer pool in the region. In addition, improving retail dynamics coupled with innovative brand campaign strategies adopted by leading tobacco manufacturing companies, in the key markets, including Bangladesh, Philippines, India, China, and others will supplement tobacco market share in the upcoming years.
- The MEA region is forecast to deliver a notable growth rate of 3% over 2018-2028 on account of the availability of relatively low priced tobacco products along with persistent growth in tobacco consumption in the region.
- Key players in the market include Altria Group, Inc., Swedish Match AB, British American Tobacco, Pyxus International, Inc., China National Tobacco Corporation, Korea Tobacco & Ginseng Corporation, Japan Tobacco Inc., ITC Limited, Scandinavian Tobacco Group, Philip Morris International, and Imperial Brands, among others.
- These industry players are adopting several strategies such as acquisitions, mergers, collaborations, new product development, and capacity expansion, thereby supporting the overall growth of the tobacco market. Moreover, rising investments by the key industry players for the R&D activities will further bolster market growth through 2027.
- For instance, In October 2019, Altria, one of the world’s largest producers and marketers of tobacco and related products announced in October 2019, regarding the launch of Iqos tobacco device in the United States. The device only heats tobacco and doesn’t burn its, while offering the same rush of nicotine as smoking a cigarettes, but with fewer toxins.
- Korea Tobacco & Ginseng Corporation (KT&G), a leading tobacco and nicotine company in South Korea and Philip Morris International Inc. collaborated in January 2020 to commercialize KT&G’s smoke-free products outside of the country.
This report forecasts revenue growth at a global, regional, & country level and provides an analysis of market trends for segments and sub-segments over 2018-2028. For the purpose of this report, Reports and Data has segmented the global tobacco market on the basis of product and region:
Product Outlook (Revenue, USD Billion, 2018 – 2028)
- Cigar & Cigarillos
- Next Generation Products
Regional Outlook (Revenue, USD Billion, 2018 – 2028)
- North America
- Rest of Europe
- Asia Pacific
- South Korea
- Rest of APAC
- Saudi Arabia
- Rest of MEA
- Latin America
- Rest of LATAM
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