Tobacco Products Global Market Report 2024

The tobacco products market size has grown steadily in recent years. It will grow from $270.24 billion in 2023 to $282.79 billion in 2024 at a compound annual growth rate (CAGR) of 4.6%. The growth experienced during the historical period can be attributed to factors such as consumer habits and addiction, the dominance of the tobacco industry, cultural and social traditions, effective marketing and branding strategies, as well as tobacco taxation and regulatory measures.

The tobacco products market size is expected to see steady growth in the next few years. It will grow to $334.96 billion in 2028 at a compound annual growth rate (CAGR) of 4.3%. Anticipated growth in the forecast period can be attributed to various factors, including health-conscious consumer preferences, declining smoking rates, regulatory changes related to packaging, the emergence of alternative products and harm reduction strategies, and the expansion of the global market. Major trends expected in the forecast period include the rise of e-cigarettes and vaping, the popularity of heat-not-burn products, the development of reduced nicotine and low-tar offerings, the market presence of menthol and flavored tobacco products, as well as the adoption of smokeless and snus products.

The world's population continues to grow and is projected to reach 10 billion by the year 2050. This population increase creates a higher demand for food, which, in turn, necessitates greater trade volumes to meet the needs of this expanding population. Consequently, companies operating in the tobacco products market are expected to experience a boost in demand for their products due to the rising global population during the forecast period.

The primary categories of tobacco products consist of cigarettes, cigars, cigarillos, as well as various smoking and non-smoking tobacco products. A cigarette is essentially a cylindrical roll of finely ground tobacco enclosed in paper or another non-tobacco material. These products can be classified into combustible tobacco, which includes products like cigarettes and cigars, and smokeless tobacco. They are distributed through a variety of channels, including supermarkets, hypermarkets, convenience stores, e-commerce platforms, and other distribution channels.

The tobacco products research report is one of a series of new reports that provides tobacco products statistics, including tobacco products industry global market size, regional shares, competitors with tobacco product shares, detailed tobacco product segments, market trends and opportunities, and any further data you may need to thrive in the tobacco products industry. This tobacco products research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The growth in smoking prevalence is anticipated to drive the expansion of the tobacco products market in the foreseeable future. Smoking, commonly associated with the act of inhaling and exhaling smoke produced by burning substances such as tobacco, cannabis, or other herbs, typically involves the use of products like cigarettes, cigars, pipes, or similar devices. The increasing prevalence of smoking is a significant factor in the growth of the tobacco industry. As more individuals become regular smokers, there is an associated surge in the demand for tobacco products, leading to increased sales. For example, in July 2022, Statistics Canada reported a 5.8% increase in cigarette production compared to June 2021, and the total number of cigarettes sold also rose by 1.3% from May 2022, reaching 1.4 billion in June 2022. Hence, the rising prevalence of smoking is a driving force behind the growth of the tobacco products market.

The outbreak of COVID-19 in 2020 had a significant impact on the tobacco products market. The pandemic led to disruptions in supply chains due to trade restrictions, and consumption declined as a result of lockdowns imposed by governments worldwide. COVID-19, characterized by flu-like symptoms including fever, cough, and breathing difficulties, was first identified in Wuhan, China, in 2019 and subsequently spread globally. Manufacturers in the food and beverage industry depend on the supply of raw materials from both domestic and international sources. Restrictions on the movement of goods, locally and across borders, forced many manufacturers to suspend production due to raw material shortages. Furthermore, concerns about contamination within manufacturing facilities and restrictions on the trade of non-essential goods contributed to this decline. While the pandemic adversely affected businesses in 2020 and 2021, it is expected that the tobacco products market will rebound over the forecast period, as the pandemic is considered a 'black swan' event unrelated to the ongoing or fundamental market weaknesses or global economic issues.

Cigarette companies are innovating in their product designs, introducing super-slim and ultra-slim cigarettes to cater to the preferences of millennials. These super-slim cigarettes are characterized by their narrow diameter of about 4.7 mm and a longer length of 99 mm. New types of cigarettes include those that are extra-slim, light in color, low in tar content, and are particularly aimed at female smokers. Slim and super-slim cigarettes are gaining popularity, especially in regions such as Asia, Africa, and the Middle East. Their usage is on the rise in prominent consumer markets like Korea, Japan, and Russia. Some well-known brands of super-slim cigarettes include Davidoff Boudoir (Imperial Tobacco), Winston XS Micro (JTI Ukraine), ESSE (KT&G), Glamour (Gallagher Tobacco Company), and Vogue (British American Tobacco).

Major companies operating in the tobacco products market are placing a strong emphasis on product innovations, including the development of heated tobacco products, to provide consumers with better alternatives to traditional cigarettes. One example of this innovation is BONDS by IQOS, a heated tobacco product that heats tobacco sticks to produce a flavorful nicotine aerosol. For instance, in November 2022, Philip Morris International (PMI), a US-based tobacco company, introduced a more affordable heated tobacco product, BONDS by IQOS, in the Philippines. BONDS by IQOS offers an array of features that make it an attractive option for adult smokers seeking a smoke-free alternative. It is less harmful than traditional cigarettes because it does not produce smoke, ash, or tar. Additionally, it is budget-friendly, user-friendly, portable, and offers various appealing flavors.

Major companies operating in the tobacco products market include Imperial brands PLC, British American Tobacco, Altria Group Inc., Philip Morris International Inc., Japan Tobacco Inc., PT Gudang Garam Tbk, Sampoerna, ITC Limited, Korea Tobacco & Ginseng Corporation, China National Tobacco Corporation, Commonwealth Brands Inc., Dosal Tobacco Corporation, Farmer's Tobacco Company of Cynthiana Inc., ITG Brands LLC, JUUL Labs Inc., Liggett Vector Brands LLC, Lorillard Tobacco Company, R.J. Reynolds Tobacco Company, Scandinavian Tobacco Group A/S, Seneca Manufacturing Co, Swedish Match AB, Godfrey Phillips India Ltd., Vector Group Ltd., Wind River Tobacco Company LLC, Xcaliber International LTD. LLC, Road Runner Cigars., Golden Tobacco Ltd., American Bison RYO, Cheyenne International LLC, Bali Shag, Baron American Blend, Benson & Hedges.

Asia-Pacific was the largest region in the tobacco products market in 2023. North America was the second-largest region of the tobacco products market. The regions covered in the tobacco products market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, and Africa.

The countries covered in the tobacco products market report are Australia, China, India, Indonesia, Japan, South Korea, Bangladesh, Thailand, Vietnam, Malaysia, Singapore, Philippines, Hong Kong, New Zealand, USA, Canada, Mexico, Brazil, Chile, Argentina, Colombia, Peru, France, Germany, UK, Austria, Belgium, Denmark, Finland, Ireland, Italy, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, Russia, Czech Republic, Poland, Romania, Ukraine, Saudi Arabia, Israel, Iran, Turkey, UAE, Egypt, Nigeria, South Africa

The tobacco products market consists of sales of chewing tobacco, cigar, cigarettes (except electronic), snuff, prepared pipe, and tobacco leaf processing and aging. E-cigarettes are not included in this market. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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