The global tobacco market is anticipated to surpass a valuation of USD 627 million in 2024 with a CAGR of 3.40% during the forecast period. The global market is expected to reach USD 878 million by 2034.
Key Factors Driving the Tobacco Market
Data Points | Market Insights |
---|---|
Anticipated Value, 2024 | USD 627 million |
Expected Base Year Value, 2034 | USD 878 million |
Market CAGR | 3.40% |
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Numerous nicotine consumers rely on smoking cigarettes and other products due to their physiological behavior. Surging trends across the globe of consuming tobacco increase its production on a large scale. Moreover, key companies target their consumers through social media advertising and promotions.
Tobacco manufacturers endorse their brands through famous personalities, sportspeople, and actors to boost market sales. These companies offer low-toxic products such as e-cigarettes, and developing next-generation products with their innovations are gaining vast popularity.
Increasing consumer health concerns are slowing the growth of the market, as, on average, four lakhs of people suffer from smoke-related diseases in the United States. Rising neurological disorders are increasing, and warning for health is restraining the market growth. Rising campaigns like ‘No Smoking’ and ‘Quit Smoking’ are declining the adoption of tobacco products.
The global tobacco market captured a valuation of USD 610 million with a CAGR of 2.20% in 2023. The market registered a valuation of USD 559 million in 2019. The rising tobacco smoking population, new consumers, and increasing addiction to tobacco products are driving the market growth. Rising trends of flavored and tobacco hookah are preferred among the vast population in developing countries like India and are capturing a relevant share.
Top companies are investing in research and development to offer smoke-free products to maintain their brand reputation among their consumers. The popularity of menthol cigarettes among youngsters to consume less amount of tobacco is surging the adoption of smoking. The rise in night parties and pubs further increases the demand for tobacco.
Countries | CAGR from 2024 to 2034 |
---|---|
United States | 3.5% |
Indonesia | 2.9% |
China | 1.1% |
India | 2.1% |
Russia | 4.5% |
The United States is estimated to secure a CAGR of 3.5% in the global market during the forecast period. Increasing consumer desire for e-cigarettes is raising the adoption of tobacco products in the country. Key players target their audiences through advertising and launching their products to pop-up cravings, driving the United States tobacco market.
In the United States, around 16.5% of high-school students are smoking cigarettes and related products that uplift the market revenue. Students slowly became habitual of chain smoking, which significantly boosted the sales of the tobacco market.
India is likely to secure a CAGR of 2.1% in the global market during the forecast period. The increasing consumer base, changing habits, and rising demand for excessive tobacco products are advancing India's tobacco market. In India, millions of people are chain smokers and are increasing the demand for tobacco-related products such as cigarettes, Hookahs, and tobacco powder.
Increasing retail shops, e-commerce platforms, and rapidly growing tobacco companies are enhancing consumers' desires, which are driving India's tobacco products market. Key companies maintain their brand reputation to build transparency related to their products among consumers in India.
China is estimated to capture a CAGR of 1.1% in the global market through 2034. Increasing consumer demand for low-nicotine cigarettes, smokeless products, and e-cigarettes is driving China's tobacco market. The rising population, growing industries, and changing preferences and tastes drive the country's demand for tobacco.
China's diverse culture and traditions are increasing the adoption of tobacco products for various purposes. Consumers are increasing the demand for tobacco leaves as an antiseptic that heals cuts and sketches in China. On the other hand, one of the product types, snuff, is widely accepted among consumers for medical purposes, significantly boosting the market growth.
Indonesia is estimated to capture a CAGR of 2.9% in the global market by 2034. Rising Indonesian festivals, ceremonies, and religious rituals are increasing the adoption of tobacco to fulfill consumers' desires. Numerous population is addicted to nicotine products in vast quantity, raising the demand for tobacco in the country. On the other hand, medical experts are surging the adoption of tobacco leaves for skin treatment, which is gaining popularity in the country.
The increasing popularity of flavored hookah among the younger generation is raising the demand for tobacco to enhance their experiences. Key players are developing a wide range of tobacco products, such as gutkha and khaini, for highly addictive consumers and are expanding the Indonesian tobacco market.
Russia is anticipated to capture a CAGR of 4.5% in the global market during the forecast period. Rising consumer demand for high-nicotine products such as cigarettes and cigars is accelerating the adoption of tobacco in the country. Increasing tobacco companies, retail shops, and vast infrastructure are raising the demand for smoking among consumers.
Key companies are launching premium products to their consumers to attract them. These companies are making high-standardized products for Z-generation consumers to satisfy their desires, which are fueling Russia's tobacco market. They offer a customized variety of tobacco products for consumers as per their choices, significantly boosting the market size.
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Based on product type, flue-cured tobacco is likely to secure a share of 34.30% in the global smokeless tobacco market during the forecast period. Increasing consumer demand for high-quality, standardized, and premium products is raising the adoption of flue-cured tobacco.
Product Type | Flue-cured Tobacco |
---|---|
Market Share | 34.30% |
Key manufacturers are enhancing production for cigarette tobacco and are surging the demand for flue-cured tobacco in vast quantities. Consumers looking for fresh, high-quality, dried, original tobacco significantly increase the demand for flue-cured tobacco.
Based on end use, cigarettes are likely to dominate the global market by securing a share of 21.80% from 2024 to 2034. A wide range of consumers are surging the adoption of cigarettes to relieve stress and remove negativity. Moreover, the addition of chain smoking among the working population is fueling the market of tobacco.
End Use | Cigarettes |
---|---|
Market Share | 21.80% |
Consumers find it easy to buy cigarettes at affordable prices as compared to other tobacco products, such as cigars, which are surging the adoption of tobacco. Manufacturers are increasing the production of cigarettes in large quantities to expand the market growth.
The global market is highly fragmented among essential players that capture a significant share by investing in research and development activities. These players carry out new ideas to develop improved and unique products and flavors as customers desire. Additionally, tobacco manufacturers spend millions to advertise their newly launched products.
Recent Developments in the Tobacco Market
Attribute | Details |
---|---|
Forecast Period | 2019 to 2023 |
Historical Data Available for | 2024 to 2034 |
Market Analysis | USD million for Value |
Key Regions Covered | North America; Latin America; Europe; South Asia; East Asia; Oceania; and the Middle East & Africa |
Key Countries Covered | United States, Canada, Brazil, Mexico, Argentina, United Kingdom, Germany, Italy, Russia, Spain, France, BENELUX, India, Thailand, Indonesia, Malaysia, Japan, China, South Korea, Australia, New Zealand, Turkey, South Africa and North Africa |
Key Market Segments Covered | Product Type, End Use, Region |
Key Companies Profiled | China Tobacco; Scandinavian Tobacco Group; KT&G Corp; ITC Ltd; Swedish Match AB; British American Tobacco; Altria Group, Inc; Imperial Brands |
Pricing | Available upon Request |
The global tobacco market is set to be worth USD 627 million in 2024.
Rising consumer demand for innovative smoking products.
The United States, China, India, and Russia are expected to drive market growth.
The tobacco market is expected to record a growth of 3.40% till 2034.
The United States, India, and China are the key tobacco producers.
The United States accounts for a CAGR of 3.5% in the tobacco market in 2024.
From 2019 to 2023, the market expanded by 2.20%.
China witnesses a CAGR of 1.1% in the global market during the forecast period.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Analysis 2019 to 2023 and Forecast, 2024 to 2034 5. Global Analysis 2019 to 2023 and Forecast 2024 to 2034, By Product 5.1. Smokeless Tobacco 5.2. Cigarettes 5.3. Cigars & Cigarillos 5.4. Next Generation Products 5.5. Kretek 5.6. Others 6. Global Analysis 2019 to 2023 and Forecast 2024 to 2034, By Distribution Channel 6.1. Supermarket & Hypermarket 6.2. Convenience Stores 6.3. Tobacco Shops 6.4. Online 6.5. Others 7. Global Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region 7.1. North America 7.2. Latin America 7.3. Western Europe 7.4. Eastern Europe 7.5. South Asia and Pacific 7.6. East Asia 7.7. Middle East and Africa 8. North America Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 9. Latin America Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 10. Western Europe Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 11. Eastern Europe Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 12. South Asia and Pacific Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 13. East Asia Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 14. Middle East and Africa Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 15. Key Countries Analysis 16. Market Structure Analysis 17. Competition Analysis 17.1. Scandinavian Tobacco Group A/S 17.2. Swedish Match AB 17.3. Altria Group, Inc. 17.4. KT&G Corp. 17.5. Imperial Brands 17.6. Philip Morris Products S.A. 17.7. British American Tobacco 17.8. Japan Tobacco Inc. 17.9. China Tobacco 17.10. ITC Ltd. 18. Assumptions & Acronyms Used 19. Research Methodology
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