Tobacco Market Growth Factors, Trends and Forecast Report to 2030

Posted on 2023-01-30 by researchinsights in Internet & Online // 0 Comments

San Francisco, California , USA, Jan 30, 2023 — /EPR Network/ —

Tobacco Industry Overview

The global tobacco market size was valued at USD 849.9 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 2.4% from 2022 to 2030.

The demand has been sustained by the growing number of smokers in the developing regions of Asia and Africa. The extensive marketing campaigns run by the major companies have also been a significant factor sustaining the industry. The industry is witnessing a trend of new product launches which intrigues consumers to consume tobacco and thereby drive market growth.

The COVID-19 pandemic has had a significant effect on the consumption of tobacco. Smoking is perceived to be extremely deadly, as COVID-19 is a respiratory disease, and smoking only aggravates the situation. However, trends across the globe revealed that lockdown-induced stress only led to increased consumption. The addition of new smokers remained relatively low during this period. However, the industry is expected to benefit from the consumers who resorted to excessive smoking during the pandemic, as it is expected to have cultivated a new habit among them.

Gather more insights about the market drivers, restrains and growth of the Global Tobacco Market

The addition of a new range of tobacco products shows a moderate increase in both the number of individuals who smoke and the percentage of people who try the new products. The use of intriguing advertising strategies has produced considerable results and has proven to be a means of remaining competitive and sustaining market dominance. For instance, specific products are promoted and advertised more intensely to specific demographic or racial groups.

According to the Centre for Disease Control and Prevention (CDC) estimates, companies such as Marlboro, Newport, and Camel, whose marketing campaigns specifically targeted the youth, were the highest marketing spenders. This led to them being the most preferred brand by the youths. Most people have seen tobacco as a significant part of their life over the previous decade. This factor is expected to drive the overall product demand in the forthcoming years.

The companies are spending huge on marketing campaigns to offset the negative impacts faced by the tobacco industry due to increased health consciousness among consumers. According to the CDC data, in 2019, USD 8.9 billion was spent by large companies on marketing smokeless tobacco and cigarettes in the U.S. This amount breaks down to USD 22.5 million per day or almost USD 1 million per hour. The companies have spent extensively on discounts, thereby increasing their market penetration and sustaining growth.

Tobacco consumption has been on the decline in developed and wealthy countries across the globe, due to the higher level of awareness among the population regarding the ill effects of its consumption. To maintain demand in such countries, the companies are introducing new products that are significantly less harmful than conventional products. The market has witnessed the introduction of new nicotine products and this category has been dubbed as new, alternative, or novel tobacco. These items are now referred to as Next-generation Products (NGP) by the tobacco control community.

Major companies have diversified their strategies to develop NGPs. Phillip Morris International, for instance, has carried out several investments in heated tobacco products. The company is strongly focused on delivering smoke-free heated tobacco products, as it envisions this category to be a game-changer in the industry. The IQOS technology is an integral part of Philip Morris’s efforts to disrupt itself and become a smoke-free company by 2025. The product already accounted for 23.8% of the company’s revenue in 2020. IQOS is a line of heated products developed as part of its “heat-not-burn” promotion. According to IQOS’s 2020 Annual Report, the company has 17.6 million users, with 12.7 million of them switching to IQOS and quitting smoking.

Browse through Grand View Research’s Alcohol & Tobacco Industry Research Reports.

Disposable E-cigarettes Market – The global disposable e-cigarettes market size was valued at USD 5.7 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 11.2% from 2022 to 2030.
Heated Tobacco Products Market – The global heated tobacco products market size to be valued at USD 77.61 billion by 2025 and is expected to grow at a compound annual growth rate (CAGR) of 52.56% during the forecast period.

Tobacco Market Segmentation

Grand View Research has segmented the global tobacco market based on product, distribution channel, and region:

Tobacco Product Outlook (Revenue, USD Billion, 2017 – 2030)
- Smokeless
- Cigarettes
- Cigar & Cigarillos
- Next Generation Products
- Waterpipes
Tobacco Distribution channel Outlook (Revenue, USD Billion, 2017 – 2030)
- Offline
- Online
Tobacco Regional Outlook (Revenue, USD Billion, 2017 – 2030)
- North America
- Europe
- Asia Pacific
- Central & South America
- Middle East & Africa (MEA)

Key Companies profiled:

Some prominent players in the global Tobacco market include

Scandinavian Tobacco Group A/S
Swedish Match AB
Altria Group, Inc.
KT&G Corp.
Imperial Brands
Philip Morris Products S.A.
British American Tobacco
Japan Tobacco Inc.
China Tobacco.
ITC Limited

Order a free sample PDF of the Tobacco Market Intelligence Study, published by Grand View Research.

About Grand View Research

Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.

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