- Changing lifestyle, continuous product innovation in terms of flavor, size, ingredients, and nicotine level, and consumer belief that smoking reduces stress and anxiety are some of the major factors propelling the growth of the market studied
- Over the past few years, there has been rising awareness regarding health hazards associated with smoking, which restrains the growth of the market studied. Moreover, the availability of various smoking alternatives in the market, including e-cigarettes, which have lesser harmful effects, also confines the growth of the market studied.
- In recent years, manufacturers found it profitable to market flavored tobacco products, such as cigars, cigarettes, smokeless tobacco, and related products, which gives them an edge over their competitors.
- Furthermore, the factors, such as consumer knowledge and increase in awareness of products and services, through digital media and other sources, coupled with the advent of social media, are educating the consumers about the benefits of organics products. This, in turn, is driving the demand for organic and herbal cigarettes. Moreover, companies' offerings these products are increasing their investments in R&D, as well as marketing and expanding their distribution channels, to maintain their position in the market.
Increasing Preference For Flavored Tobacco
The rising number of female smokers, the strong distribution network of cigarette manufacturers, and the popularity of flavored cigarettes are supporting the market growth. Flavored tobacco products are gaining significant momentum and have become much more prevalent in the last few years across the world. These products are flavored smokeless tobacco, e-cigarettes, little cigars and cigarillos, large cigars hookah, and dissolvable, in addition to menthol cigarettes. They are sold in a variety of flavors range from confectionery flavors to alcoholic beverages to herbs and spices. According to a survey conducted by the CDC (National Youth Tobacco Surveys) in 2018, nearly 3.2 million middle and high school students in the United States were found to use flavored tobacco products.
China Holds a Significant Share In The Market
China is the world’s largest producer and consumer of tobacco, with over 300 million smokers. Over half of Chinese men smoke, consuming over 40% of the world’s cigarettes. The Chinese tobacco market is dominated by the China National Tobacco Corporation (CNTC), a state-owned enterprise (SOE) that is responsible for almost more than 90% percent of all cigarettes sold in China. The CNTC owns numerous brands, from large ones such as Hong Shuangxi, Yun Yan, and Zhongnanhai, to smaller regional brands and derivatives. Foreign companies can manufacture and sell their tobacco products, only through a joint venture with the CTNC. For example, Marlboro, one of the world’s largest tobacco brands, started the manufacturing process in China in 2008, after agreeing with the CNTC to promote Chinese brands overseas. Top publicly traded tobacco companies, including Philip Morris International (PMI), British American Tobacco (BAT), Japan Tobacco International (JTI), and Imperial Tobacco, are aggressively seeking to increase their market share in the Chinese market. Additionally, the increasing number of organized retail outlets makes tobacco products easily accessible and available to consumers. This is one of the primary factors that is actively driving the growth of the tobacco market across the country.
The market is dominated by players, like British American Tobacco PLC, China National Tobacco Corporation, Philip Morris Products SA, and Japan Tobacco International SA. The leading players in the market studied enjoy a dominant presence worldwide. These players focus on leveraging opportunities posed by the emerging markets to expand their product portfolio, in order to cater to the requirements for various product segments, especially e-cigarettes. Owing to this factor, the key players are embarking on mergers and acquisitions as one of their key strategies to achieve consolidation and optimize their offerings. For instance, in February 2018, Imperial Brands acquired the Austrian vaping manufacturer, Von Erl. The acquisition is part of Imperial’s “next-generation products” strategy, which includes electronic vapor, as well as heated tobacco devices.
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1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitutes
4.3.5 Degree of Competition
5. MARKET SEGMENTATION
5.1 By Flavor
5.2 By Format
5.2.2 Super Slim
5.2.3 King Size
5.3 By Distribution Channel
5.3.1 Offline Retail Stores
5.3.2 Online Retail Stores
5.4 By Geography
5.4.1 North America
184.108.40.206 United States
220.127.116.11 Rest of North America
18.104.22.168 United Kingdom
22.214.171.124 Rest of Europe
126.96.36.199 Rest of Asia-Pacific
5.4.4 South America
188.8.131.52 Rest of South America
5.4.5 Middle East & Africa
184.108.40.206 South Africa
220.127.116.11 Saudi Arabia
18.104.22.168 Rest of Middle East & Africa
6. COMPETITIVE LANDSCAPE
6.1 Strategies Adopted by Key Players
6.2 Most Active Companies
6.3 Market Share Analysis
6.4 Company Profiles
6.4.1 British American Tobacco PLC
6.4.2 Imperial Brands PLC
6.4.3 ITC Limited
6.4.4 Altria Group Inc.
6.4.5 China National Tobacco Corporation
6.4.6 Japan Tobacco International SA
6.4.7 Philip Morris Products SA
6.4.8 PT Gudang Garam Tbk
6.4.9 Korea Tobacco & Ginseng Corporation
6.4.10 Eastern Company SAE
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. IMPACT OF COVID-19 ON THE MARKET DISCLAIMER
- Altria Group Inc.
- British American Tobacco PLC
- China National Tobacco Corporation
- Eastern Company SAE
- Imperial Brands PLC
- ITC Limited
- Japan Tobacco International SA
- Korea Tobacco & Ginseng Corporation
- Philip Morris Products SA
- PT Gudang Garam Tbk