Report : Raw Tobacco Leaves Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Leaf Type (Virginia, Oriental, and Others) and Application (Smoking Tobacco, Moist and Dry Snuff, and Others)
Increasing Consumption of Tobacco Products in Developing Regions to Escalate Growth of Raw Tobacco Leaves Market during 2021–2028
According to our latest market study on “Raw Tobacco Leaves Market Forecast to 2028 – COVID-19 Impact and Analysis – by Leaf Type (Virginia, Oriental, and Others) and Application (Smoking Tobacco, Moist and Dry Snuff, and Others),” the market was valued at US$ 31,045.19 million in 2021 and is projected to reach US$ 34,436.28 million by 2028; it is expected to grow at a CAGR of 1.5% from 2021 to 2028. The report highlights key factors driving the market and prominent players along with their developments in the market.
Tobacco products are made by curing raw tobacco leaves. Tobacco leaves contain nicotine and a volatile alkaloid that stimulate brain function. Dried raw tobacco leaves are commonly utilized in various products such as cigarettes, shisha, pipes, and cigars. To make tobacco leaves consumable, tobacco product manufacturers add various flavorings and chemicals to them.
The demand for tobacco products is increasing rapidly in developing regions such as Asia Pacific and Middle East and Africa. The growth in demand in Asia Pacific is attributed to the rising population, elevating income levels of the consumers, and lenient government regulations. The market in emerging regions such as the Asia Pacific and Middle East & Africa is expected to witness substantial growth during the forecast period. Growth in retail infrastructure and widespread brand campaigns by leading tobacco-producing organizations, such as Philip Morris International and British American Tobacco, in primary markets including India, China, Bangladesh, and the Philippines are projected to fuel the market growth in the Asia Pacific region in the coming years. Efforts by multinational tobacco companies to surge and develop tobacco production in the emerging regions are expected to meet the increasing needs of their overseas markets with readily available and cheaper tobacco leaves. Asia-Pacific is one of the significant producers and consumers of tobacco globally, led by countries such as India and China. Four of the largest tobacco companies across the world are Japan Tobacco Inc., China National Tobacco Corporation, ITC Limited, and PT Gudang Garam Tbk, and they are based in Asia Pacific. Moreover, China is the largest market in the region, with a substantial percentage of its population consuming tobacco products. With lax in regulations in countries, such as the ban on the consumption of tobacco products in public places in India, and the increasing availability of tobacco products in modern retail outlets in the region are actively fueling the growth of the raw tobacco leaves market in Asia Pacific. Moreover, the Middle East & Africa has been observing consistent growth in the adoption of tobacco consumption. Egyptian adolescents make a substantial proportion of this consumer segment. A considerable factor contributing to the adoption of these products is the relatively low prices of tobacco products in Egypt. Tobacco is one of the considerable sources of tax revenue for governments globally. Owing to lax regulatory environments, emerging economies are now fueling the growth of the market. Cigarette is the most consumed tobacco product owing to several factors such as convenience and cost-effectiveness. Henceforth, all these factors are expected to drive the growth of the raw tobacco leaves market during the forecast period.
Universal Corporation, Sopariwala Exports, Alliance One International Inc., Leaf Only, British American Tobacco p.l.c., Leafcon International, BBM Bommidala Group, Star Agritech International, JT Group, and U.S. Tobacco Cooperative Inc. are among well-established players operating in the raw tobacco leaves market.
Impact of COVID-19 Pandemic on Raw Tobacco Leaves Market
The COVID-19 outbreak has badly affected several businesses across the world. The pandemic has had the most influence on the production and logistics industries. The outbreak forced the governments of numerous countries to impose lockdown to decrease the spread of the virus. Thus, several companies are undergoing downtime and some companies are working remotely, which is leading to low productivity and income. The COVID-19 pandemic has created a significant societal and economic disruption and resulted in closures of stores, factories, and offices. The crisis also put restrictions on manufacturing, distribution, and travel. All these factors adversely impacted businesses, operations, cash flows, and financial positions during the continuation of the pandemic. The raw tobacco leaves industry was significantly growing before the COVID-19 outbreak. However, it is experiencing an irregularity in recent times, as consumers are selective in their purchases. The condition has substantially disrupted the demand for tobaccos. In several countries, tobacco products are classified as nonessential items, which has lowered the demand for raw tobacco leaves and tobacco products across the globe. COVID-19 is a respiratory disease so creates breathing issues. Therefore, people are avoiding using tobacco products. Also, tobacco smokers are being advised to quit smoking to lower the risk of getting infected by the virus. Thus, the COVID-19 outbreak is expected to restrain the growth of the raw tobacco leaves market in the future.
Based on leaf type, the global raw tobacco leaves market is segmented into virginia, oriental, and others. Based on application, the market is segmented into smoking tobacco, moist and dry snuff, and others. Based on geography, the market is segmented into North America, Europe, Asia Pacific, South and Central America, and Middle East and Africa. By country, North America is further segmented into the US, Canada, and Mexico. Based on country, Europe is further segmented into Germany, France, Italy, the UK, Russia, and Rest of Europe. Based on country, Asia Pacific is further segmented into China, India, Japan, and Rest of APAC. By country, Middle East and Africa is further segmented into Saudi Arabia, the UAE, South Africa, and Rest of MEA. Based on country, South America is further segmented into Brazil, Argentina, and Rest of SAM.
Contact Person: Sameer Joshi
Email Id: email@example.com