Tobacco Market Size, Share & Trends Report

Tobacco Market Size, Share & Trends Analysis Report By Product (Smokeless, Cigarettes, Cigar & Cigarillos, Next Generation Products, Waterpipes), By Region, And Segment Forecasts, 2021 - 2028

  • Published Date: Feb, 2021
  • Base Year for Estimate: 2020
  • Report ID: GVR-2-68038-412-3
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2019
  • Number of Pages: 80

Report Overview

The global tobacco market size was valued at USD 932.11 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 1.8% from 2021 to 2028. It has been observed that the number of smokers has been rising at the global level. This trend is further propelled by the launch of new products, including various flavored tobacco products such as clove cigarettes and menthol cigars. These factors together are expected to drive the market over the next few years. Moreover, over the past few years, with consumers gradually inclining toward smoking alternatives, the introduction of innovative tobacco products in varied taste options has become imperative. As a result, manufacturers have focused on premium tobacco products produced with flue-cured tobacco and fine whole leaf.

U.S. tobacco market size, by product, 2016 - 2028 (USD Billion)

According to a report released by the American Lung Association, a substantial rise has been noticed among the people who smoke less than 15 cigarettes per day from 2016 to 2017. A surge in the number of adults who had ever tried electronic cigarettes has been observed along with this. The number of such users increased from 12.6% to 14.4% from 2014 to 2017. Similarly, in the U.S., it is seen that the adoption of electronic cigarettes has been increased by 1650% among school students from 2011 to 2019.

Companies have been creating new products to keep up with millennials' changing demands and generation Z. For instance, in May 2019, Philip Morris launched IQOS. This electronic device heats paper-wrapped tobacco-filled sticks and as a result, generates nicotine-containing aerosol. The product has been launched as an alternative to cigarettes.

The launch of non-hazardous products is expected to remain an eminent factor for the industry's key players over the next few years. For instance, in July 2018, Juul Labs entered the U.K. market to launch its new vaping device. The product is pretty small and is compared to the size of a flash drive. With the product, the company plans to target adult smokers. The product will be launched in 250 vape shops across the U.K. The starter pack contains the device and four nicotine pods and is priced at GBP 39.66.

The COVID-19 pandemic has had a substantial negative impact on the tobacco industry owing to the nature of the disease. It is a deadly viral infectious disease that attacks the lungs and severely impacts breathing. People with significant tobacco consumption or any tobacco addiction have been recognized as most vulnerable people of the illness, including Severe Acute Respiratory Syndrome (SARS), Middle East Respiratory Syndrome Coronavirus (MERS-CoV), cardiovascular diseases, and other pulmonary diseases. Therefore, any smokeless and smoke products are receiving negative attention due to their associated health risks.

Product Insights

Cigarettes held the largest share of more than 75.0% in 2020. Over the past few years, the popularity of growing partying and pubbing culture among millennials and working-class populations has propelled the demand for various flavored and unflavored cigarettes across the globe. In addition to this, emerging economies such as India, Thailand, and China are witnessing a decent rise in cigarette demand due to rising youngsters in these countries.

Global tobacco market share, by product, 2020 (%)

The next-generation tobacco products segment is anticipated to be the fastest-growing segment with a CAGR of 2.8% from 2021 to 2028. Rising consumer preference for less harmful tobacco products over cigarettes can be attributed to the growing need to live a healthy lifestyle. This has driven the demand for the consumption of next-generation products in the tobacco sector. The North American market is gaining momentum and is anticipated to witness promising growth in the demand for next-generation products owing to the increasing consumer disposable income, rising number of product launches, and the availability of superior-quality products.

Regional Insights

Asia Pacific emerged as the largest regional market with a share of more than 35.0% in 2020. Improvement in retail infrastructure and extensive brand campaigns by leading tobacco manufacturing firms, including Philip Morris International and British American Tobacco, in key markets, including China, Bangladesh, India, and the Philippines, are expected to remain favorable factors for the market growth in this region. Furthermore, the industry participants are targeting the consumers by launching flavored cigarettes, which are popular among consumers, particularly youth and millennials.

The Middle East and Africa region is anticipated to be the fastest-growing regional market with a CAGR of 3.0% from 2021 to 2028. The region has been witnessing consistent growth in the adoption of tobacco consumption. Egyptian adolescents make a significant proportion of this consumer segment. A significant factor contributing to the adoption of these products is the relatively low prices of tobacco products in Egypt.

Key Companies & Market Share Insights

The market is consolidated in nature and is characterized by various well-established players and several small and medium players. Major players in the market adopt several strategies, including mergers & acquisitions, collaborations, product launches, and expansion of distribution channels, in order to capture a significant market share and expand their customer base across the globe. In January 2020, the Scandinavian Tobacco Group completed the acquisition of Agio Beheer B.V. from Highlands Beheer B.V. Royal Agio Cigars group. The subsidiary of Agio Beheer B.V. will provide the acquirer access to a robust product portfolio in machine-made cigar markets. Some prominent players in the global tobacco market include:

  • Pyxus International, Inc.

  • Swedish Match AB

  • Altria Group, Inc.

  • Korea Tobacco & Ginseng Corporation

  • Imperial Brands

  • Philip Morris International

  • British American Tobacco

  • Japan Tobacco Inc.

  • Scandinavian Tobacco Group

  • ITC Limited

  • China National Tobacco Corporation

Tobacco Market Report Scope

Report Attribute

Details

Market size value in 2021

USD 949.82 billion

Revenue forecast in 2028

USD 1,073.79 billion

Growth Rate

CAGR of 1.8% from 2021 to 2028

Base year for estimation

2020

Historical data

2016 - 2019

Forecast period

2021 - 2028

Quantitative units

Revenue in USD billion and CAGR from 2021 to 2028

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Product, region

Regional scope

North America; Europe; Asia Pacific; Central & South America; MEA

Country scope

U.S.; Turkey; Russia; China; India; Brazil; Egypt

Key companies profiled

Pyxus International, Inc.; Swedish Match AB; Altria Group, Inc.; Korea Tobacco & Ginseng Corporation; Imperial Brands; Philip Morris International; British American Tobacco; Japan Tobacco Inc.; Scandinavian Tobacco Group; ITC Limited; China National Tobacco Corporation

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Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2016 to 2028. For the purpose of this study, Grand View Research has segmented the global tobacco market report on the basis of product and region:

  • Product Outlook (Revenue, USD Billion, 2016 - 2028)

    • Smokeless

    • Cigarettes

    • Cigar & Cigarillos

    • Next Generation Products

    • Waterpipes

    • Others

  • Regional Outlook (Revenue, USD Billion, 2016 - 2028)

    • North America

      • U.S.

    • Europe

      • Turkey

      • Russia

    • Asia Pacific

      • China

      • India

    • Central & South America

      • Brazil

    • Middle East & Africa

      • Egypt

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