The Global Tobacco Market is expected to grow at a CAGR of 3% during the forecasting period (2022-2029).
Tobacco is one of the most commonly used nicotine products among all the populace types, whose demand grew by more than 30% in the last five years globally.
Tobacco is consumed in many forms, from traditional cigarettes, cigars, and chewing tobacco. It is now utilized in new forms such as vapes, e-cigarettes, heat-not-burned, snus, and snuff.
Several companies are entering the market with new and advanced products for tobacco technology.
For instance, in December 2020, TAAT Lifestyle & Wellness Ltd. expanded its production facility for its flagship product, “Beyond Tobacco” cigarettes.
In most developed countries, companies are using innovative marketing techniques to increase sales, attract new customers and increase their market share. The methods include packaging, product placement, and product design, which impact the overall product development. The youth population in developed countries are taking up tobacco products due to innovative marketing and packaging and an urge to mingle with their peers.
As per CDC (Centre for Disease Control and Prevention), U.S. Department of Health & Human Services in the United States, more than one out of four school students and 1 out of 14 middle school students are using tobacco products in 2018, which is continually increasing since 2018. The e-cigarette is one of the fastest-growing tobacco-consuming products among high school students, followed by cigarettes, cigars, smokeless tobacco, hookah, and pipe tobacco. The pipe tobacco growth is less than 2% since 2018 due to high cost and difficulty in understanding its usage, which is relatively easy in cigarettes and e-cigarette.
Only in the United States, more than 1.5 Million new customers are getting added each year to the list of tobacco customers from 2018 to 2020. The tobacco product demand also grew by 38.3% in 2018 among high school students in the United States.
By Distribution Channel
The tobacco stores segment in the global tobacco market is reached US$ XX Million in 2019. It is expected to reach US$ XX Million by 2027, growing with a CAGR of XX% between 2020 and 2027 Ø Tobacco stores are the most common source for the purchase of tobacco products in both developing and developed countries. Not just cigarettes, chewing tobacco (which is famous in the Indian sub-continent) and local cigarettes are majorly purchased in units and bulk both from tobacco stores Ø In India, almost at every corner of each street, at least one tobacco store contributes to more than 80% of sales in the country. India is one of the largest tobacco consumers globally and includes more than 600 million licensed stores. Even in rural areas, tobacco stores are quite common. Every local brand is readily available Ø Cigarettes are majorly consumed in urban areas, whereas, in rural and semi-urban regions of India, chewing tobacco is the most consumed product.
The Asia-Pacific tobacco market is reached US$ XX Million in 2019 and is expected to reach US$ XX Million by 2027 growing with a CAGR of XX% between 2020 and 2027
Asia-Pacific dominates the global tobacco market due to the rising demand for cigarettes in the region. In Vietnam, Thailand, and Indonesia, the cigarette is the most common tobacco product consumed, whereas demand for a cigarette is growing in China, India, Australia, and Singapore.
The region is also the largest contributor to the e-cigarette, where China is a pioneer and a key factor for tobacco equipment growth.
On the other hand, India banned vape and e-cigarette products in 2019, which blew to all major manufacturers globally, focusing on India since it has one of the largest tobacco consumers globally.
Get your free sample proposal with a single click!