Global Tobacco Market Size, Share, Opportunities, And Trends By Product Type (Cigarettes, Cigars, Smokeless Tobacco, Others), By Distribution Channel (Traditional Retail, Duty-Free, Online Retail, Others), And By Geography - Forecasts From 2024 To 2029

Tobacco is a type of plant that can be cultivated for the drug that is acquired from it, known as nicotine. The leaves of tobacco plants are cured, aged, and processed for consumption through inhaling, smoking, and chewing.

Introduction:

The global tobacco market is expected to witness a stable increase in growth during the forecasted period of 2024-2029, due to factors such as increasing popularity and affordability, and lack of regulation against tobacco.

Market Drivers:

• Popularity and Affordability: Tobacco is known to be readily accessible and affordable in various regions of the world. The increase in accessibility and affordability is due to the increasing popularity of tobacco as a drug that has little to no regulation in some locations in the world. Another factor that increases the usage and popularity of tobacco usage worldwide is social media and its various effects on the brain. Smoking has been linked to various effects on the body, which include improved mood and concentration, decreased anger and stress, relaxed muscles, and reduced appetite. The unstable increase in consumption of tobacco can also lead to addiction, which is commonly not recommended by various healthcare establishments and medical institutes in the healthcare industry. Due to the various effects tobacco has on the brain, the number of users is also expected to increase in number during the forecasted period. For instance, as per the World Health Organization, the total number of global tobacco users accounted for an estimated 1.3 billion, among which 80% of them are from low and middle-income countries. This is due to the high affordability rate of tobacco in such regions. Furthermore, the total economic cost of smoking accounted to be an estimated US$1.4 trillion every year.  This relevance of tobacco in society drives the global tobacco market growth during the forecasted period.
• Lack of regulation: The lack of regulation against tobacco in some regions and countries drives the global tobacco market growth during the forecasted period. This allows large tobacco companies to advertise, sell, and promote tobacco usage, further increasing the global tobacco market growth. As per ash.org, around 38% of the countries in the world have minimal or no restrictions over tobacco advertising, promotion, and sponsorship worldwide. When coupled with the 1.3 billion tobacco users worldwide, the increase in the global tobacco market growth is expected to steadily increase during the forecasted period.

Key Players:

• British American Tobacco (BAT): A global leader known for the production and sale of tobacco products worldwide. The company was formed through a joint venture agreement between Imperial Tobacco Company and the American Tobacco Company in 1902.
• Imperial Brands plc: One of the largest multinational tobacco companies in the world, known for the manufacturing, production, distribution, marketing, and sale of tobacco products in the market.

Regional Analysis:

The Asia Pacific region is the current leader in the Tobacco market and is expected to witness significant growth in the tobacco market during the forecasted period. China and India contribute to the majority of the tobacco industry expansion in the region and throughout the world. China and India are the leading producers of tobacco worldwide. For instance, as per the data in ourworldindata.org, China accounted for an estimated production of 2.13 million tonnes and India accounted for an estimated production of 757,513,94 tonnes in tobacco in 2021. This is due to the high popularity of smoking cigarettes in the region, which leads to an increase in demand and production of tobacco in the region.

Furthermore, India accounts for 0.45 million hectares just for the production and cultivation of tobacco, as per the Indian Trade Portal. It also states that 10% of the total cultivatable area accounts for the production of tobacco in the country, further accounting for 9% of the global total cultivation of tobacco. The average production volume during the past five years accounts for 800 million kg. The top producers of tobacco include Gujarat, Andhra Pradesh, Uttar Pradesh, Karnataka, West Bengal, Telangana, and Bihar. The top 3 states in the country that produce tobacco, which includes Gujarat, Andhra Pradesh, and Uttar Pradesh, accounted for an estimated contribution of 45%, 20%, and 15% respectively to the total tobacco production in the country. Additionally, India accounted for an export volume of 68,550 tonnes of FCV tobacco in 2022-23. The total export volume in August 2022 accounted for an estimated 15,224 tonnes with a valuation of US$56.21 million. During 2021-22, the total volume export of FVC tobacco accounted for an estimated 27,742 tonnes, which were valued at an estimated Rs. 2,858 crores (US$359 million). Furthermore, the total export value of tobacco accounted for an estimated Rs. 4,102 crores (US$515 million) in April and May 2022. Overall, India exported tobacco and tobacco products worth US$923.80 million in 2021-22.

Therefore, the increasing relevance of tobacco production and exports from the region drives the tobacco market growth globally during the forecasted period.

Market Developments:

• October 2023: Japan Tobacco Inc. announced the launch of their new heated tobacco device in Japan dubbed Ploom X ADVANCED, which offers enhanced taste satisfaction compared to their previous Ploom X model, due to their POWER HEATFLOW heating engine. It generates a maximum temperature of up to 320?, providing an authentic rich tobacco taste combined with a rich flavour sensation from the initial puff to the end. It is also integrated with an automatic heating function, further improving the usability of the device by automatically starting the heating process after the tobacco stick has been inserted.
• July 2023: Japan Tobacco Inc. announced the launch of their new infused tobacco vapour device dubbed “with 2” in Japan. This product consists of their unique infused technology that generates vapour when atomized liquid passes through the capsule that contains granulated tobacco. This reduces the wastage of time due to the generation of tobacco vapour during inhalation. The device consists of a dual mode that allows consumers to switch between two heating modes at the touch of a button, which includes a high mode that produces 1.3 times more vapour compared to the normal mode, providing an even more intense flavour experience.
• July 2022: British American Tobacco announced the launch of their state-of-the-art heated tobacco product dubbed glo™ hyper X2. This product offers the industry’s widest choice of scientifically substantiated, less risky and enjoyable products, and was created using customer insights, providing new, innovative and user-friendly features. The product consists of advanced induction heating technology encased in a smaller, lighter-weight device, a separate boost function for faster heating, a battery status LED indicator, a protective iris-shaped shutter and bold new colourways for a variety of consumer preferences.

Segmentation:

• By Product Type:
  • Cigarettes
  • Cigars
  • Smokeless Tobacco
  • Others
• By Distribution Channel:
  • Traditional Retail
  • Duty-Free
  • Online Retail
  • Others
• By Geography:
  • North America
    • United States
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • United Kingdom
    • Germany
    • France
    • Italy
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Others
  • Asia Pacific
    • Japan
    • China
    • India
    • South Korea
    • Taiwan
    • Thailand
    • Indonesia
    • Others