Market Trends of Cigarette Industry
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.
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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.
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