Cigarette Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 6.60 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Europe |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Cigarette Market Analysis
The global cigarette market is expected to register a CAGR of 6.6% during the forecast period.
- Nowadays, giant manufacturers find it profitable to market flavored tobacco products, such as cigars, fruit-flavored cigarettes, smokeless tobacco, and related products, which gives them an edge over their competitors. Moreover, changing lifestyles, continuous product innovation in terms of packaging size, organic ingredients, and balanced nicotine levels gain consumer acceptance and belief that smoking reduces stress and anxiety, propelling the market's growth globally.
- In a study conducted by the Center for Disease Control and Prevention (CDC), companies such as Marlboro, Newport, and Camel, who designed marketing campaigns specifically aimed at attracting the attention of young people, were found to be the most heavily involved in marketing campaigns. As a result of this, they were regarded as the most preferred brand by youths. Tobacco has become a significant part of people's lives over the last decade and is consumed on a daily basis. During the next few years, this factor will likely play a significant role in driving the overall demand for cigarettes in the market.
- Furthermore, several factors, such as consumer knowledge and an increase in awareness of products and services, through digital media and other sources, coupled with the advent of social media, are educating consumers about the benefits of organics cigarette products which, in turn, is driving the demand for organic and herbal cigarettes. Moreover, companies offerings these products are increasing their investments in R&D, and marketing and expanding their distribution channels, to maintain their position in the market.
Cigarette Market Trends
This section covers the major market trends shaping the Cigarette Market according to our research experts:
Rising demand of flavored cigarettes
- The rising number of female smokers, the strong distribution network of cigarette manufacturers, and the popularity of flavored cigarettes are increasing due to the adoption of Western culture lifestyles among individuals. Moreover, most vendors are adopting online retail strategies to reduce costs and increase their margins, which is expected to benefit the market during the forecast period.
- Thus, with the growth of e-commerce, many retail stores are broadening their offerings by introducing cigars and flavored cigarettes such as menthol-flavored, clove-favored, mint-flavored, etc., which, in turn, makes it relatively easy to procure. This drives faster product adoption, resulting in healthy market growth.
- To cater to the preferences of various subgroups of smokers, including women and younger consumers, cigarette manufacturers have optimized product appeal by focusing on products with specific design features for subgroups of tobacco users. Variations in the smoothness/harshness balance, nicotine effect, mouth feel, and draw resistance have all been used.
- Further, the rapid uptake of flavored cigarettes among youth was not only because of marketing but also because of modifications in product design that affect sensory perceptions, which attract more children toward smoking. This, in turn, is boosting the cigarette market growth globally.
China Holds a Significant Share In The Market
- In terms of market share, Asia Pacific holds the largest share of the global market. This region is expected to grow faster in the near future due to the improvement of offline infrastructure, as well as extensive brand marketing campaigns by major companies operating in key markets such as China, India, Bangladesh, and the Philippines. Further, companies are paying more attention to the needs of their customers and are introducing flavored cigarettes, which are particularly popular among the younger generation.
- Additionally, the increasing number of organized retail outlets makes tobacco products easily accessible and available to consumers. This is one of the primary factors actively driving the growth of the tobacco market across the region.
- Asia's developing countries are experiencing an increase in tobacco users. According to the World Health Organisation, China is the world's largest producer and consumer of tobacco, taking the lead in both production and consumption. China has a population of more than 300 million smokers, making up nearly one-third of the total number of smokers worldwide. Among adult men, more than half are currently smoking tobacco products.
- The Chinese tobacco market is dominated by the China National Tobacco Corporation (CNTC), a state-owned enterprise (SOE) responsible for selling most of the cigarettes in China. The CNTC owns numerous brands, from large ones such as Hong Shuangxi, Yun Yan, and Zhongnanhai, to smaller regional brands and derivatives.
Cigarette Industry Overview
Players like British American Tobacco PLC, ITC Limited, Philip Morris Products SA, Altria Group Inc., and Japan Tobacco International SA dominate the market. The leading players in the market studied enjoy a dominant presence worldwide. These players focus on leveraging opportunities posed by emerging markets to expand their product portfolio to cater to the requirements of 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. Advanced distribution networks and manufacturing expertise give an upper edge to the manufacturers to expand their range of products across the region.
Cigarette Market Leaders
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British American Tobacco PLC
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Altria Group Inc.
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Japan Tobacco International
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ITC Limited
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Philip Morris Products SA
*Disclaimer: Major Players sorted in no particular order
Cigarette Market News
- October 2022: Altria Group, Inc. announced that JT Group (JT) agreed to enter into a strategic partnership with them to market and commercialize heated tobacco stick products in the United States and to expand the company's heated tobacco product line.
- January 2022: 22nd Century introduced the first reduced nicotine cigarette or VLN, which the FDA approved to promote smoking less. The company is now focusing on bringing VLN to the market aggressively.
- December 2021: ITC Ltd., India's largest cigarette company, managed to accomplish its cigarette business, endorsed by a favorable tax structure, revived focus on product innovations, product designing, and its vast distribution reach. The steadily growing business is flourishing with a higher growth approach.
Cigarette Market Report - Table of Contents
1. INTRODUCTION
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 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Flavor
5.1.1 Flavored
5.1.2 Non-Flavored
5.2 Format
5.2.1 Slim
5.2.2 Super Slim
5.2.3 King Size
5.2.4 Regular
5.3 Distribution Channel
5.3.1 Offline Retail Stores
5.3.2 Online Retail Stores
5.4 Geography
5.4.1 North America
5.4.1.1 United States
5.4.1.2 Canada
5.4.1.3 Mexico
5.4.1.4 Rest of North America
5.4.2 Europe
5.4.2.1 United Kingdom
5.4.2.2 France
5.4.2.3 Germany
5.4.2.4 Sweden
5.4.2.5 Italy
5.4.2.6 Russia
5.4.2.7 Rest of Europe
5.4.3 Asia Pacific
5.4.3.1 China
5.4.3.2 Japan
5.4.3.3 India
5.4.3.4 Australia
5.4.3.5 Rest of Asia-Pacific
5.4.4 South America
5.4.4.1 Brazil
5.4.4.2 Argentina
5.4.4.3 Rest of South America
5.4.5 Middle East and Africa
5.4.5.1 South Africa
5.4.5.2 Saudi Arabia
5.4.5.3 Rest of Middle East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Most Adopted Strategies
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 British American Tobacco PLC
6.3.2 Imperial Brands PLC
6.3.3 ITC Limited
6.3.4 Altria Group Inc.
6.3.5 China National Tobacco Corporation
6.3.6 Japan Tobacco International SA
6.3.7 Philip Morris Products SA
6.3.8 22nd Century Group
6.3.9 Korea Tobacco & Ginseng Cooperation
6.3.10 Eastern Company SAE
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Cigarette Industry Segmentation
Cigarettes are narrow cylinders often rolled in the thin paper that contains a flammable material, usually tobacco.
The global cigarette market is segmented by flavor, format, distribution channel, and geography. Based on the flavor, the market is segmented into flavored and non-flavored. Based on the format, the market is segmented into slim, super slim, king-size, and regular. Furthermore, based on distribution channels, the market is segmented into offline and online retailers. It also analyzes emerging and established geographical regions, such as North America, Europe, Asia-Pacific, South America, and Middle East & Africa.
For each segment, the market sizing and forecasts have been done based on value (in USD million).
| Flavor | |
| Flavored | |
| Non-Flavored |
| Format | |
| Slim | |
| Super Slim | |
| King Size | |
| Regular |
| Distribution Channel | |
| Offline Retail Stores | |
| Online Retail Stores |
| Geography | |||||||||
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Cigarette Market Research FAQs
What is the current Cigarette Market size?
The Cigarette Market is projected to register a CAGR of 6.60% during the forecast period (2024-2029)
Who are the key players in Cigarette Market?
British American Tobacco PLC, Altria Group Inc., Japan Tobacco International, ITC Limited and Philip Morris Products SA are the major companies operating in the Cigarette Market.
Which is the fastest growing region in Cigarette Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Cigarette Market?
In 2024, the Europe accounts for the largest market share in Cigarette Market.
What years does this Cigarette Market cover?
The report covers the Cigarette Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Cigarette Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the challenges faced by the cigarette industry with increasing anti-smoking regulations?
The challenges faced by the Cigarette Industry with increasing anti-smoking regulations are a) Stricter marketing bans b) Plain packaging laws
Cigarette Industry Report
The global cigarette market growth is fueled by a mix of traditional and innovative products, from flavored and non-flavored options to emerging e-cigarettes, reflecting diverse consumer tastes and preferences. Key factors driving market expansion include product variety, the rise of organized retail, and an increasing smoker base in the Asia-Pacific due to demographic shifts. While offline channels dominate sales, there's a clear move towards sustainable practices and certifications like Fair-Trade. Consumer trends are leaning towards healthier, innovative smoking alternatives amidst tighter regulations and health considerations. The industry's future hinges on product innovation and market adaptation, as companies strive to align with consumer demands and regulatory frameworks, highlighting a dynamic market poised for transformation. For detailed insights, 糖心vlog传媒鈩� Industry Reports provide comprehensive analysis, including market share, size, revenue growth rate, and a forecast outlook, available as a free report PDF download.
