Tobacco Market Report

Tobacco Market Analysis, Market Size, Application Analysis, Regional Outlook, Competitive Strategies And Forecasts, 2014 To 2020

Format: PDF  |  Report ID: 401

Tobacco, derived from the American plant of night shade family, is the key ingredient for cigarettes and chewing tobacco. It has a high content of addictive psychoactive ingredient, nicotine which is potentially hazardous to health. Tobacco products are wholly or partly made of tobacco leaf. They are made with intention of smoking, chewing or snuffing and are categorize into two basic types: Smoking tobacco and smokeless tobacco. 

The tobacco market is expected to witness growth, with a range of tobacco products such as cigarettes, cigars, kreteks, dissolvable tobacco, pipe, hookah-cigarettes etc. Presently, the drivers to this market are increase in consumer disposable income, improved new product development and innovation, and availability of premium products. However, government intervention by imposing ban on smoking, taxes and health awareness amongst consumers has been a key challenge to the tobacco industry. The global tobacco industry struggles as a result of negative publicity on the grounds of health issues, taxes, unfavorable regulations etc. Smoking once perceived as a social pastime has now been viewed as anti social and causing premature death owing to lung cancer and other disorders Currently , tobacco manufacturing companies are required to include health warning labels on their product casings and can no longer undertake marketing campaigns. These factors have been a key restraint to the tobacco market 

The tobacco industry has been using automated manufacturing processes presently as against the traditional manufacturing techniques. Advancement in technology and automation has reduced the dependence on human labor which has affected the labor intensive market in countries such India, China and Indonesia. Earlier, tobacco smoking was considered to be a masculine habit; however, manufacturers have changed this stigma by introducing cigarettes such as Silk Cut especially designed for women. In recent times social cachet associated with cigars has accelerated the market demand. Health awareness amongst consumers has led to increased consumption of cigars for their low level of health hazards. Cigarillos are cigars that weigh less than three grams are witnessing high market growth. Cigar advertising coupled with aromatic variants has high appeal amongst female and younger demographic. These aforementioned facts are likely to drive the market growth. 

The leading tobacco manufacturing countries include U.S., China, India, Brazil, and Turkey; China is the market leader closely followed by the U.S. The growth of the tobacco industry in China has created significant employment opportunities. The key participants in the market include China National Tobacco Corporation, Philip Morris International, Japan Tobacco, BAT (British American Tobacco Plc), Eastern Tobacco, Bulgartabak, Tobacco & Liquor Corp, Lorillard and Reynolds Imperial Tobacco etc.

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