The scope of the recent study titled “Tobacco Products Market Forecast to 2028 - COVID-19 Impact and Global Analysis - by Product Type (Cigarettes, Cigars & Cigarillos, Roll-Your-Own, and Others) and Distribution Channel (Supermarkets & Hypermarkets, Convenience Stores, Online Retail, and Others)' includes the description of factors fueling the market growth, estimation and forecast of revenue, and identification of significant market players and their key developments, along with market share analysis.
The tobacco products market is projected to reach US$ 907,665.43 million by 2028 from US$ 782,022.19 million in 2021. It is expected to grow at a CAGR of 2.2% from 2021 to 2028.
Although tobacco products are addictive and harmful, they are used widely across the world. This has compelled the US Food and Drugs Administration to make exclusive additions to their regulations. Tobacco is used in the production of chewing tobacco, smoking tobacco, cigarettes, and cigar. The tobacco plant can be easily grown in all weather and environmental conditions, such as moist or warm. The rising consumption of tobacco in developing countries is attributed to increasing per capita income, less stringent government regulations, and the growing influence of western culture.
Based on distribution channel, the tobacco products market has been segmented into supermarkets & hypermarkets, convenience stores, online retail, and others. The supermarkets & hypermarkets segment held a significant share of the market in 2020, and the online retail segment is projected to register the highest CAGR during the forecast period. E-commerce platforms offer a wide range of products of different brands. The manufacturers of tobacco products prefer selling their products through e-commerce platforms as they are popular among youngsters. Buyers can easily compare among different products and choose the right product for them. Moreover, these channels include the detailed description of products, along with customer reviews, which helps customers in choosing the right product.
Based on geography, the tobacco products market is primarily segmented into North America, Europe, Asia-Pacific (APAC), the Middle East & Africa (MEA), and South & Central America (SAM). Asia-Pacific accounted for the largest share of the market. China, Japan, and India are among the key producers of tobacco in the region. Moreover, the presence of leading companies such as ITC Ltd.; Japan Tobacco International; Imperial Brands; and China Tobacco International (HK) Company Limited is also driving the growth of the tobacco products market across the region.
Covid-19 pandemic has been declared as respiratory disease and creates breathing issues owing to which people are avoiding smoking. Also, smokers are advised to quit smoking to lower the risk of getting infected by the virus. This factor significantly affects the sales of tobacco products. However, the production of tobacco products increased significantly as the manufacturers started operating with full capacity in 2021. The people from a majority of the nations are fully vaccinated, and government restrictions have been lifted, which is boosting the growth of the tobacco products market.
Based on product type, the tobacco products market is segmented into cigarettes, cigars & cigarillos, roll-your-own, and others. In terms of distribution channel, the market is segmented into supermarkets & hypermarkets, convenience stores, online retail, and others. Based on geography, the tobacco products market is primarily segmented into North America, Europe, Asia-Pacific (APAC), the Middle East & Africa (MEA), and South & Central America (SAM).
Reasons to Buy
The tobacco products market is projected to reach US$ 907,665.43 million by 2028 from US$ 782,022.19 million in 2021. It is expected to grow at a CAGR of 2.2% from 2021 to 2028.
Although tobacco products are addictive and harmful, they are used widely across the world. This has compelled the US Food and Drugs Administration to make exclusive additions to their regulations. Tobacco is used in the production of chewing tobacco, smoking tobacco, cigarettes, and cigar. The tobacco plant can be easily grown in all weather and environmental conditions, such as moist or warm. The rising consumption of tobacco in developing countries is attributed to increasing per capita income, less stringent government regulations, and the growing influence of western culture.
Based on distribution channel, the tobacco products market has been segmented into supermarkets & hypermarkets, convenience stores, online retail, and others. The supermarkets & hypermarkets segment held a significant share of the market in 2020, and the online retail segment is projected to register the highest CAGR during the forecast period. E-commerce platforms offer a wide range of products of different brands. The manufacturers of tobacco products prefer selling their products through e-commerce platforms as they are popular among youngsters. Buyers can easily compare among different products and choose the right product for them. Moreover, these channels include the detailed description of products, along with customer reviews, which helps customers in choosing the right product.
Based on geography, the tobacco products market is primarily segmented into North America, Europe, Asia-Pacific (APAC), the Middle East & Africa (MEA), and South & Central America (SAM). Asia-Pacific accounted for the largest share of the market. China, Japan, and India are among the key producers of tobacco in the region. Moreover, the presence of leading companies such as ITC Ltd.; Japan Tobacco International; Imperial Brands; and China Tobacco International (HK) Company Limited is also driving the growth of the tobacco products market across the region.
Impact of COVID-19 Pandemic on Tobacco Products Market
Covid-19 pandemic has been declared as respiratory disease and creates breathing issues owing to which people are avoiding smoking. Also, smokers are advised to quit smoking to lower the risk of getting infected by the virus. This factor significantly affects the sales of tobacco products. However, the production of tobacco products increased significantly as the manufacturers started operating with full capacity in 2021. The people from a majority of the nations are fully vaccinated, and government restrictions have been lifted, which is boosting the growth of the tobacco products market.
Tobacco Products Market Breakdown - by Region
The report segments the tobacco products market as follows:
Based on product type, the tobacco products market is segmented into cigarettes, cigars & cigarillos, roll-your-own, and others. In terms of distribution channel, the market is segmented into supermarkets & hypermarkets, convenience stores, online retail, and others. Based on geography, the tobacco products market is primarily segmented into North America, Europe, Asia-Pacific (APAC), the Middle East & Africa (MEA), and South & Central America (SAM).
Reasons to Buy
- Highlights key business priorities in order to assist companies to realign their business strategies
- The key findings and recommendations highlight crucial progressive industry trends in the global tobacco products market, thereby allowing players to develop effective long-term strategies
- Develop/modify business expansion plans by using substantial growth offering developed and emerging markets
- Scrutinize in-depth the market trends and outlook coupled with the factors driving the market, as well as those hindering it
- Enhance the decision-making process by understanding the strategies that underpin commercial interest with respect to products, segmentation, and industry verticals
Table of Contents
1. Introduction
3. Research Methodology
4. Tobacco Products Market Landscape
5. Tobacco Products Market - Key Market Dynamics
6. Tobacco Products - Global Market Analysis
7. Global Tobacco Products Market Analysis - By Product Type
8. Global Tobacco Products Market Analysis - By Distribution Channel
9. Tobacco Products Market - Geographic Analysis
10. Impact of COVID-19 Pandemic on Global Tobacco Products Market
11. Company Profiles
12. Appendix
List of Tables
List of Figures
Executive Summary
The tobacco products market is projected to reach US$ 907,665.43 million by 2028 from US$ 782,022.19 million in 2021. It is expected to grow at a CAGR of 2.2% from 2021 to 2028. Tobacco products include cigarettes, cigars, cigarillos, e-cigarettes, vapes, snus/snuff, and dissolvable tobacco products, among others. The rising number of smokers in developing regions such as Asia-Pacific and the Middle East & Africa is primarily driving the growth of the tobacco products market. Moreover, manufacturers are developing premium and low-risk products, have reduced health implications than combustibles. These products are expected to gain massive traction among people with the rapidly growing awareness regarding harm caused by smoking.Based on product type, the tobacco products market is segmented into cigarettes, cigars & cigarillos, roll-your-own, and others. The cigarettes segment accounted for the largest market share in 2020. Virginia, Burley, and Oriental are the three main categories of tobacco. These three tobacco categories are blended in different proportions to manufacture different cigarette types. The rising number of female smokers with the growing popularity of flavored cigarettes is supporting the market growth. Cigarettes are available in various flavors, including confectioneries, alcoholic beverages, herbs, and spices. Menthol is one of the most widely used and recognizable flavors in tobacco products. According to the World Health Organization (WHO), menthol-flavored cigarettes represented ~10% of the total cigarette market with a share greater than 25% in many countries, including the Philippines, Chile, Singapore, and the US, in 2018.
Based on geography, the tobacco products market is primarily segmented into North America, Europe, Asia-Pacific (APAC), the Middle East & Africa (MEA), and South & Central America. In 2020, Asia-Pacific held the largest share of the market, and the MEA is expected to register the highest CAGR in the market during the forecast period. Many tobacco companies are increasingly targeting developing economies such as India and Bangladesh to expand their business operations as these markets have strong growth potential. Asia-Pacific is one of the significant producers and consumers of tobacco products globally. Moreover, the laws imposed on tobacco products in countries such as India are lenient compared to the laws in developed countries. These factors are fueling the growth of the tobacco products market across Asia-Pacific.
The leading players in the tobacco products market include Altria Group, Inc.; British American Tobacco plc; Swedish Match AB; ITC Ltd.; Japan Tobacco International; Imperial Brands; Philip Morris Products S.A.; Vector Group LTD.; Pyxus International, Inc.; and China Tobacco International (HK) Company Limited. These players are developing reduced-risk products (RRPs) to address the growing concerns regarding the harms of combustible tobacco products. RRPs include heated tobacco products such as e-cigarettes and vapes, and smokeless tobacco products such as snus and dissolvable tobacco. The rising development of low-risk tobacco products by key players operating in the market is expected to support the growth of the tobacco products market in the coming years.
The size of the tobacco products market has been derived using primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the market. Also, multiple primary interviews have been conducted with industry participants to validate the data and gain more analytical insights. Participants of this process include industry experts such as VPs, business development managers, market intelligence managers, national sales managers, and external consultants, including valuation experts, research analysts, and key opinion leaders, specializing in the tobacco products market.
Companies Mentioned
- Altria Group, Inc.
- British American Tobacco- plc.
- Swedish Match Ab
- Itc Ltd.
- Japan Tobacco- International
- Imperial Brands
- Philip Morris Products S.A.
- Vector Group Ltd.
- Pyxus International, Inc.
- China Tobacco- International (Hk) Company Limited
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 163 |
| Published | March 2022 |
| Forecast Period | 2021 - 2028 |
| Estimated Market Value ( USD | $ 782022.19 Million |
| Forecasted Market Value ( USD | $ 907665.43 Million |
| Compound Annual Growth Rate | 2.2% |
| Regions Covered | Global |
| No. of Companies Mentioned | 10 |
