Cigarette Market - Growth, Trends, and Forecasts (2020-2025)

The Global Cigarette Market Is Segmented by Type (Flavored and Non-Flavored); By Format (Slim, Super Slim, King Size and Regular); By Distribution Channel (Offline Retail Stores and Offline Retail Stores) & by Geography.

Market Snapshot

Study Period:

2020-2025

Base Year:

2019

Fastest Growing Market:

Asia Pacific

Largest Market:

Europe

CAGR:

6.6 %

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Market Overview

The global cigarette market is expected to grow at a CAGR of 6.6% during the forecast period (2020 - 2025).

  •  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.

Scope of the report

The report offers key insights into the latest developments of the global cigarette market (henceforth, referred to as the market studied). The report involves the study of the latest trends and factors driving the demand for the market studied. The report analyzes the drivers, restraints, opportunities, and challenges affecting the market space for the global cigarette industry. It also provides an analysis of the emerging and established geographical regions, such as North America, Europe, Asia-Pacific, South America, and Middle East & Africa. By flavor, the market studied is segmented into flavored and non-flavored. By format, the market studied is segmented into slim, super slim, king size, and regular. Furthermore, the report analyzes the impact of the distribution channels in retaining businesses. Distribution channels also segment the research study, wherein both offline and online retails have been considered to keep the study under a manageable proportion.

By Flavor
Flavored
Non-Flavored
By Format
Slim
Super Slim
King Size
Regular
By Distribution Channel
Offline Retail Stores
Online Retail Stores
Geography
North America
United States
Canada
Mexico
Rest of North America
Europe
Belgium
United Kingdom
France
Germany
Sweden
Italy
Russia
Rest of Europe
Asia Pacific
China
Japan
India
Australia
Rest of Asia-Pacific
South America
Brazil
Argentina
Rest of South America
Middle East and Africa
South Africa
Saudi Arabia
Rest of Middle East and Africa

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Key Market Trends

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.

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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.

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Competitive Landscape

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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Table Of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Porter's Five Forces Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Flavor

      1. 5.1.1 Flavored

      2. 5.1.2 Non-Flavored

    2. 5.2 By Format

      1. 5.2.1 Slim

      2. 5.2.2 Super Slim

      3. 5.2.3 King Size

      4. 5.2.4 Regular

    3. 5.3 By Distribution Channel

      1. 5.3.1 Offline Retail Stores

      2. 5.3.2 Online Retail Stores

    4. 5.4 Geography

      1. 5.4.1 North America

        1. 5.4.1.1 United States

        2. 5.4.1.2 Canada

        3. 5.4.1.3 Mexico

        4. 5.4.1.4 Rest of North America

      2. 5.4.2 Europe

        1. 5.4.2.1 Belgium

        2. 5.4.2.2 United Kingdom

        3. 5.4.2.3 France

        4. 5.4.2.4 Germany

        5. 5.4.2.5 Sweden

        6. 5.4.2.6 Italy

        7. 5.4.2.7 Russia

        8. 5.4.2.8 Rest of Europe

      3. 5.4.3 Asia Pacific

        1. 5.4.3.1 China

        2. 5.4.3.2 Japan

        3. 5.4.3.3 India

        4. 5.4.3.4 Australia

        5. 5.4.3.5 Rest of Asia-Pacific

      4. 5.4.4 South America

        1. 5.4.4.1 Brazil

        2. 5.4.4.2 Argentina

        3. 5.4.4.3 Rest of South America

      5. 5.4.5 Middle East and Africa

        1. 5.4.5.1 South Africa

        2. 5.4.5.2 Saudi Arabia

        3. 5.4.5.3 Rest of Middle East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Most Active Companies

    2. 6.2 Most Adopted Strategies

    3. 6.3 Market Share Analysis

    4. 6.4 Company Profiles

      1. 6.4.1 British American Tobacco PLC

      2. 6.4.2 Imperial Brands PLC

      3. 6.4.3 ITC Limited

      4. 6.4.4 Altria Group Inc.

      5. 6.4.5 China National Tobacco Corporation

      6. 6.4.6 Japan Tobacco International SA

      7. 6.4.7 Philip Morris Products SA

  7. *List Not Exhaustive
  8. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

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