Raw Tobacco Leaves Market to Grow at a CAGR of 1.5% to reach US$ 34,436.28 Million from 2020 to 2028

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)

Publication Month : Jul 2021

  • Report Code : TIPRE00020691
  • Category : Food and Beverages
  • Status : Published
  • No. of Pages : 125
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The raw tobacco leaves 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.

Tobacco products are made by curing raw tobacco leaves. Tobacco leaves contain nicotine and a volatile alkaloid that stimulate brain function. Moreover, continuous innovations in tobacco products and government regulations in selling raw tobacco leaves are projected to create profitable opportunities for active vendors during the forecast period.

During the forecast period, Asia Pacific is likely to account for the largest share of the global raw tobacco leaves market. Acccording to Asia-Pacific Heart Network, the region has the highest smoking rates in the world, as 2.3 million deaths are recorded in the region due to tobacco consumption-related diseases per year, accounting for about half of the 5 million global tobacco related deaths each year. Further, improvements in retail infrastructure and intensive brand campaigns by prominent tobacco companies, such as Philip Morris International and British American Tobacco, in key markets such as China, Bangladesh, India, and the Philippines are likely to support the market expansion in this region.

The ongoing COVID-19 pandemic has drastically altered the status of the raw tobacco leaves market. The pandemic has had the most influence on the production, logistics, and tourism & travel 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.

Geographic Overview of Raw Tobacco Leaves Market

Geographic Overview of Raw Tobacco Leaves Market

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Market Insights

Increasing Consumption of Tobacco Products in Developing Regions

The demand for tobacco products is increasing rapidly in regions such as Asia Pacific and Middle East & 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.

Leaf Type Insights

Based on leaf type, the global raw tobacco leaves market is segmented into virginia, oriental, and others. The virginia segment is expected to hold the largest share of the market during the forecast period. Virginia, or flue-cured tobacco, is also known as 'bright tobacco' because of its golden-yellow to deep-orange color while curing. It is typically cured for a week in heated barns and has a light, vibrant flavor, and taste. It grows exceptionally well in rainy areas, such as Georgia (USA), southern Brazil, and Zimbabwe, and can be found in almost every cigarette blend. Virginia tobacco is the most widely consumed tobacco across the world. It is grown, harvested, cured, and processed in a variety of methods. It has a nicotine range from 1% to 4% and sugar ranges from 4% to 25%. Virginia tobacco contains a large amount of sugar and makes the cigarette smoke sweeter.

Raw Tobacco Leaves Market, by Leaf Type – 2020 and 2028

Raw Tobacco Leaves Market, by Leaf Type – 2020 and 2028

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Application Insights

The raw tobacco leaves market, based on application, is segmented into smoking tobacco, moist and dry snuff, and others. The smoking tobacco segment is expected to hold the largest share of the market during the forecast period. Raw tobacco leaves are mainly used for smoking in products such as cigarettes, roll-your-own, cigars, water pipes, e-cigarettes, and vapes. Tobacco smoking is an act of inhaling the smoke produced by burning dry or cured tobacco leaves. Tobacco's biochemically active components, such as nicotine and TSNA, are released during combustion and can be absorbed through the lungs. Tobacco is the core component of smoking tobacco products. Virginia, burley, and oriental are three tobacco types that are widely used in making tobacco products. According to a 2016 Behavioral Risk Factor Surveillance System survey, 44.3% of current young adult e-cigarette users were never smokers before trying e-cigarettes. Furthermore, young adults between the ages of 18 and 24 year are increasingly utilizing e-cigarettes. According to a recent study, the percentage of young adults who use e-cigarettes every day or on some days increased from 2.4% in 2012–2013 to 5.2% in 2017 and then increased again to 7.6% in 2018.

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Raw Tobacco Leaves Market: Strategic Insights

raw-tobacco-leaves-market
Market Size Value inUS$ 31,045.19 Million in 2021
Market Size Value byUS$ 34,436.28 Million by 2028
Growth rateCAGR of 1.5% from 2021-2028
Forecast Period2021-2028
Base Year2021
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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 global raw tobacco leaves market. These companies offer their products worldwide.

Report Spotlights

  • Progressive industry trends in the global raw tobacco leaves market to help players develop effective long-term strategies
  • Business growth strategies adopted by developed and developing markets
  • Quantitative analysis of the global raw tobacco leaves market from 2019 to 2028
  • Estimation of the demand for raw tobacco leaves across various industries
  • Porter’s Five Forces analysis to illustrate the efficacy of vendors operating in the industry to predict the market growth
  • Recent developments to understand the competitive market scenario and the demand for raw tobacco leaves
  • Market trends and outlook coupled with factors driving and restraining the growth of the raw tobacco leaves market
  • Decision-making process by understanding strategies that underpin commercial interest with regard to the global raw tobacco leaves market growth
  • Raw tobacco leaves market size at various nodes of the market
  • Detailed overview and segmentation of the global raw tobacco leaves market as well as its dynamics in the industry
  • Raw tobacco leaves market size in various regions with promising growth opportunities

Raw Tobacco Leaves Market, by Leaf Type


  • Virginia
  • Oriental
  • Others
Raw Tobacco Leaves Market, by Application
  • Smoking Tobacco
  • Moist and Dry Snuff
  • Others

Company Profiles

  • 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
  • U.S. Tobacco Cooperative Inc.
Report Coverage
Report Coverage

Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends

Segment Covered
Segment Covered

Leaf Type and Application

Regional Scope
Regional Scope

North America, Europe, Asia Pacific, Middle East & Africa, South & Central America

Country Scope
Country Scope

Argentina, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Russian Federation, Saudi Arabia, South Africa, United Arab Emirates, United Kingdom, United States

Frequently Asked Questions


Which major factors are influencing the growth of global raw tobacco leaves market?

The global raw tobacco leaves market growth is majorly influenced by determinants such as increasing consumption of tobacco products in developing countries, rising health awareness regarding the health concerns of tobacco, and strategic investments by the prominent market players.

Based on leaf type, which segment is leading the global raw tobacco leaves market during the forecast period?

The Virginia segment is expected to dominate the market during the forecast period. Virginia, or flue-cured tobacco, is also known as 'bright tobacco' because of the golden-yellow to deep-orange color while curing. It is typically cured for a week in heated barns and has a light, vibrant flavor, and taste. It grows exceptionally well in rainy areas, such as Georgia (USA), southern Brazil, and Zimbabwe, and can be found in almost every cigarette blend. Virginia tobacco is the most widely consumed tobacco in the world.

Based on application, which segment led the global raw tobacco leaves market in 2020?

Based on application, the smoking tobacco segment dominated the market in 2020 and is expected to maintain its dominance throughout the forecast period. Raw tobacco leaves are mainly used for smoking in products such as cigarettes, roll-your-own, cigars, water pipes, e-cigarettes, and vapes. Tobacco smoking is the act of inhaling the smoke produced by burning dry or cured tobacco leaves. Tobacco's biochemically active components, such as nicotine and TSNA, are released during combustion and can be absorbed through the lungs. Tobacco is the core component of smoking tobacco products.

Can you list some of the major players operating in the global raw tobacco leaves market?

The major players operating in the global raw tobacco leaves market are 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, U.S. Tobacco Cooperative Inc. and many others.

Which region held the largest share of the global raw tobacco leaves market?

In 2020, Asia-Pacific accounted for the largest share of more than 55% in the global raw tobacco leaves market. The Asia-Pacific region has some of the highest smoking rates in the world, with 2.3 million deaths from tobacco-related diseases per year, accounting for about half of the 5 million global tobacco deaths each year. Further, improvements in retail infrastructure and intensive brand campaigns by prominent tobacco companies such as Philip Morris International and British American Tobacco, in key markets such as China, Bangladesh, India, and the Philippines, are likely to support market expansion in this region.

How is the competitive rivalry in the global raw tobacco leaves market?

The overall threat of rivalry in raw tobacco leaves market is high. Rivalry is a high threat to profit when there are more than two competitors of similar size. Herein, competitive rivalry is intense as the industry’s products are undifferentiated. This makes for intense rivalry because competitors are constantly seeking ways to reach a competitive advantage over one another to gain market share.

The List of Companies - Raw Tobacco Leaves Market

  1. Universal Corporation
  2. Sopariwala Exports
  3. Alliance One International Inc.
  4. Leaf Only
  5. British American Tobacco p.l.c.
  6. Leafcon International
  7. BBM Bommidala Group
  8. Star Agritech International
  9. JT Group
  10. U.S. Tobacco Cooperative Inc.

The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.

  1. Data Collection and Secondary Research:

As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.

Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.

  1. Primary Research:

The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.

For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.

A typical research interview fulfils the following functions:

  • Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
  • Validates and strengthens in-house secondary research findings
  • Develops the analysis team’s expertise and market understanding

Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:

  • Industry participants: VPs, business development managers, market intelligence managers and national sales managers
  • Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.

Below is the breakup of our primary respondents by company, designation, and region:

Research Methodology

Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.

  1. Data Analysis:

Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.

  • 3.1 Macro-Economic Factor Analysis:

We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.

  • 3.2 Country Level Data:

Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.

  • 3.3 Company Profile:

The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.

  • 3.4 Developing Base Number:

Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.

  1. Data Triangulation and Final Review:

The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.

We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.

We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.

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