Global Tobacco Market Size to Grow at a CAGR of 2.10% During the Forecast Period of 2023-2028

0
44
Tobacco Market

The ‘Global Tobacco Market Share and Forecast 2023-2028’ by Expert Market Research gives an extensive outlook of the global tobacco market, assessing the market on the basis of its segments like product type and major regions.

The key highlights of the report include:

Market Overview (2018-2028)

  • Historical Market Size (2022): USD 859.14 billion
  • Forecast CAGR (2023-2028): 10%
  • Forecast Market Size (2028): USD 973.232 billion

One of the major tax revenue sources for governments around the world is tobacco. Due to their loose regulatory frameworks, developing economies are currently driving the tobacco market expansion. Particularly in recent years, the demand for flavoured and unflavoured cigarettes around the world has been spurred by the millennial generation’s growing popularity of partying and pub culture, as well as the working-class communities. The introduction of new lines of tobacco products are supporting increase in both the population of existing smokers and new product users.

The adoption of engaging promotional methods has yielded impressive results and has demonstrated to be a technique of maintaining competition and market supremacy. For instance, some demographic or racial groups are targeted through more aggressive promotion and advertising of certain products. This has further accelerated the market growth.

Throughout the forecast period, the Asia Pacific region is expected to continue to play a prominent role in the expansion of the global tobacco market. China has been a leading producer of tobacco since tobacco leaves are widely available and the tobacco industry holds a substantial market share. India has also been contributing to regional growth as tobacco becomes more widely available through retail channels like supermarkets and hypermarkets, in addition to sales through the unorganised retail sector.

Industry Definition and Major Segments

Tobacco is a plant that can refer to any Nicotiana species, particularly Nicotiana tabacum. It is grown for the tobacco leaves which contain high levels of nicotine, and the leaves are subsequently dried and fermented and processed for use in cigars, cigarettes, and pipes. Nicotine is considered to be highly addictive, and several other chemicals are also often found in tobacco that may be injurious to health.

Based on product type, the market is segmented into:

  • Cigarettes
  • Roll Your Own
  • Cigars
  • Cigarillos
  • Others

On the basis of region, the market is divided into:

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East and Africa

Market Trends

The key trends driving the growth of the global tobacco market are the rising prevalence of smoking and consistent demand for tobacco products. Due to its addictive effects, consumers often become regular purchasers of tobacco products. The long-standing demand for tobacco has resulted in its widespread cultivation, generating employment opportunities in rural areas, further supporting the market growth.

The market for tobacco is growing as a result of a new product launches that entice customers to consume tobacco. Despite awareness of the health risks of cigarettes, the growing number of cigarette smokers globally has been the main factor boosting the growth of the global market for tobacco. Coupled with cigarettes’ growing appeal, the market for tobacco is anticipated to expand over the next few years.

Moreover, a significant trend in the tobacco market is the rising sales of cigarettes through unorganised retail locations in tier-1 cities, rural areas, and semi-urban areas. Hectic schedules, short deadlines, and extended office hours of workers have contributed to a greater desire for cigarettes. Adults view cigarettes as a stress relief which is aiding the market growth of tobacco.

Key Market Players

The major players in the global tobacco market report are KT&G Co., Ltd., Philip Morris International Inc., BAT British American Tobacco p.l.c., JT International SA, Imperial Brands PLC, ITC Limited, PT. Gudang Garam Tbk, Scandinavian Tobacco Group A/S, Universal Corporation, and China Tobacco International (HK) Company Limited, among others. The report covers the market shares, capacities, plant turnarounds, expansions, investments and mergers and acquisitions, among other latest developments of these market players.

The report studies the latest updates in the market, along with their impact across the market. It also analysis the market demand, together with its price and demand indicators. The report also tracks the market on the bases of SWOT and Porter’s Five Forces Models.