Tobacco Market Size, Share & Trends Report

Tobacco Market Size, Share & Trends Analysis Report By Type (Cigarettes, Smoking Tobacco, Smokeless Tobacco, Cigars & Cigarillos), By Region (U.S., Canada, U.K., China), And Segment Forecasts, 2012 - 2021

  • Published Date: Jul, 2018
  • Base Year for Estimate: 2015
  • Report ID: GVR-2-68038-412-3
  • Format: Electronic (PDF)
  • Historical Data: 2012 - 2014
  • Number of Pages: 43

Industry Insights

The global tobacco market size was valued at USD 604.35 billion in 2015 and is poised to register a CAGR of 2.8% from 2016 to 2021. Globally, the market has faced several challenges, including stringent government policies, rising health consciousness, increasing popularity and availability of substitutes, and economic concerns.

Global tobacco market

In addition, availability of traditional nicotine replacement therapies such as gum, patches, and lozenges, which help alleviate cravings, threaten to impede market growth. Electronic cigarettes (e-cigs) are currently the largest threat to the industry on a global scale, with several countries proving to be key markets for such products. As a result, tobacco and associated product manufacturers are looking for innovative ways to sell their products in the market.Improving public awareness about the adverse impact of smoking on health and overall wellness, combined with rising government initiatives to control consumption such as graphic adverts on television as well as on product packaging, will be a barrier for new entrants.

Type Insights

Based on type, the market has been segmented into on cigarettes, smoking tobacco, smokeless tobacco, and cigars and cigarillos. Cigarettes enjoyed the dominant share in the global market in 2016, accounting for 93.0% of the overall revenue generated. Smoking tobacco formed the second-largest segment, with a 3.4% share that year. In several developed countries, however, smokeless tobacco holds a key share in the overall market.

Regional Insights

China forms the largest tobacco market, followed by U.S., U.K., and Canada. Convenience stores form the most prominent channel of sales of tobacco products. However, increasing health awareness among consumers, stricter government regulations pertaining to these products, and rising popularity of and preference for substitutes threaten to restrict the growth of the China market. Moreover, manufacturers are hiking per unit price of cigarettes and other tobacco products due to increased tax. This has led consumers to look to more value-for-money products. Despite this, premium cigarettes will continue to hold consumer preference owing to the perception that they are less harmful.

Global tobacco market share

U.S. is the second largest market but is currently witnessing a long-term downward trend. This can be attributed to rising health consciousness among the people, coupled with rising government initiatives to curb tobacco-related diseases. In August 2016, the U.S. Food and Drug Administration (FDA) implemented a rule to regulate vapored tobacco such as hookah, e-cigarettes, and pipe tobacco. Nevertheless, despite a continuously changing regulatory framework, the market will gain revenue through high per unit price resulting from increased tax levied on tobacco products.

Tobacco Market Share Insights

Key industry participants include Altria Group, Inc.; Reynolds American Inc.; Hongyunhonghe Tobacco (Group) Co.; British American Tobacco p.l.c. (BAT), Ltd.; Japan Tobacco Inc.; Imperial Brands PLC; and Philip Morris International Inc. These companies are engaged in strategic initiatives such as new product development and acquisition, which are intended to augment growth and expand their business with new technologies and products. The market is fragmented in nature; nevertheless, presence of large multinational companies intensifies competition.

Report Scope



Base year for estimation


Actual estimates/Historical data

2012 - 2014

Forecast period

2016 - 2021

Market representation

Revenue in USD Billion & CAGR from 2016 to 2021

Country scope

U.S., Canada, U.K., and China

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Segments Covered in the Report

This report forecasts revenue growth at global and country levels and provides an analysis of latest industry trends and opportunities in each of the sub-segments from 2012 to 2021. For the purpose of this study, Grand View Research has segmented the global tobacco market report based on type and region:

  • Type Outlook (Revenue, USD Billion, 2012 - 2021)

    • Cigarettes

    • Smoking Tobacco

    • Smokeless Tobacco

    • Cigars & Cigarillos

  • Regional Outlook (Revenue, USD Billion, 2012 - 2021)

    • U.S.

    • Canada

    • U.K.

    • China

Key questions answered by the report
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