Tobacco Products Market Share & Size | Global Analysis by 2028

Tobacco Products Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Product Type (Cigarettes, Cigars & Cigarillos, Roll-Your-Own, and Others) and Distribution Channel (Supermarkets & Hypermarkets, Convenience Stores, Online Retail, and Others)

  • Report Code : TIPRE00027854
  • Category : Consumer Goods
  • Status : Published
  • No. of Pages : 163
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The tobacco products market is projected to reach US$ 907,665.43 million by 2028 from US$ 782,022.19 million in 2021. It is expected to grow at a CAGR of 2.2% from 2021 to 2028.

Tobacco leaves of different varieties, such as Virginia and Burley, are blended to manufacture products such as cigarettes, cigars & cigarillos, and roll-your-own tobacco. The consumption of tobacco and related products increased worldwide during the time of economic slowdown owing to the fall in the stock markets and foreclosures, and the stress related to layoffs, which propelled many people to seek refuge through smoking. Tobacco is one of the most common addictive substances used in the world. It also contributes to the majority of the tax revenues for various nations in developed and developing economies.

Asia-Pacific held the largest share of the tobacco products market in 2020, while the Middle East & Africa is expected to register a significant CAGR in the market during the forecast period. The key players operating in the tobacco products market are expanding their operations across the Middle East & Africa owing to the potential customer base, favorable laws, and rapidly developing retail landscape across the region.

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Tobacco Products Market: Strategic Insights

Market Size Value inUS$ 782,022.19 Million in 2021
Market Size Value byUS$ 907,665.43 Million by 2028
Growth rateCAGR of 2.2% from 2021 to 2028
Forecast Period2021-2028
Base Year2021
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Impact of COVID-19 Pandemic on Tobacco Products Market

The COVID-19 pandemic brought unprecedented challenges for many sectors in early 2020. Lockdowns, border restrictions, travel bans, manufacturing discontinuation, and other safety measures rolled out by governments as per the guidelines of the WHO and national health ministries hampered the manufacturing operations. On the other hand, according to studies conducted by the American College of Physicians, during the first 16 months of the COVID-19 pandemic, cigarette sales in the US were greater than anticipated. The majority of the tobacco companies witnessed a surge in demand for smokeless or heated tobacco products and chewing tobacco products during the pandemic. However, they faced a slight decline in retail travel sales due to travel bans.

Tobacco Products Market Breakdown – by Region

  • Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.

Market Insights

Surging Demand for Noncombustible Tobacco Products Drives Market Growth

Due to the rising health concerns related to the consumption of combustible tobacco products, governments have encouraged companies to introduce several laws and regulations to keep a check on tobacco consumption. They have raised combustible tobacco taxes and lowered noncombustible tobacco prices. This resulted in a greater uptake of noncombustible products, such as e-cigarettes. For instance, the UK government adopted a holistic approach by significantly increasing the taxes on combustible tobacco products and lowering the taxes on noncombustible products. This increased the adoption of e-cigarettes in the UK market, significantly reducing the smoking prevalence rates in the country. Manufacturers have also developed oral, noncombustible, or smokeless tobacco products under the reduced-risk products (RRPs) category.

Product Type Insights

Based on product type, the tobacco products market is segmented into cigarettes, cigar & cigarillos, roll-your-own, and others. The other tobacco products segment is projected to register the highest CAGR during the forecast period. This segment includes e-cigarettes, vapes, snus, and dissolvable. The rising awareness about the harm caused by combustible tobacco products is driving the demand for noncombustible tobacco products, such as e-cigarettes, vapes, and chewing tobacco products.

Tobacco Products Market, by Product Type – 2020 and 2028

Tobacco Products Market, by Product Type – 2020 and 2028
  • Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.

Distribution Channel Insights

Based on distribution channel, the tobacco products market has been segmented into supermarkets & hypermarkets, convenience stores, online retail, and others. The online retail segment is projected to register the highest CAGR in the market during the forecast period. Online retail offers a convenient shopping experience to users, followed by simplified product delivery. Online retail stores offer a wide range of products at heavy discounts; also, consumers can conveniently buy desirable products remotely. Home delivery services encourage a large number of consumers to shop through e-commerce portals.

The key players operating in the tobacco products market include Altria Group, Inc.; British American Tobacco plc; Swedish Match AB; ITC Ltd.; Japan Tobacco International; Imperial Brands; Philip Morris Products S.A.; Vector Group LTD.; Pyxus International, Inc.; and China Tobacco International (HK) Company Limited. These players are engaged in developing products with reduced health risks to meet the emerging consumer trends, along with abiding by regulatory frameworks. They are involved in mergers and acquisitions, business expansions, and partnerships to expand their market share.

Report Spotlights

  • Progressive industry trends in the tobacco products market to help players develop effective long-term strategies
  • Business growth strategies adopted to secure growth in developed and developing markets
  • Quantitative analysis of the tobacco products market from 2019 to 2028
  • Estimation of global demand for tobacco products
  • Porter's Five Forces analysis to illustrate the efficacy of buyers and suppliers operating in the industry
  • Recent developments to understand the competitive market scenario
  • Market trends and outlook as well as factors governing the growth of the tobacco products market
  • Assistance in the decision-making process by highlighting market strategies that underpin commercial interest, leading to the market growth
  • Size of the tobacco products market size at various nodes
  • Detailed overview and segmentation of the market, and the tobacco industry dynamics
  • Size of the growth in various regions with promising growth opportunities
Report Coverage
Report Coverage

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

Segment Covered
Segment Covered

Product Type, and Distribution Channel

Regional Scope
Regional Scope

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

Country Scope
Country Scope

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

Frequently Asked Questions

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

Some of the prominent players operating in the global tobacco products market include Altria Group, Inc.; British American Tobacco plc; Swedish Match AB; ITC Ltd.; Japan Tobacco International; Imperial Brands; Philip Morris Products S.A.; Vector Group LTD.; Pyxus International, Inc.; and China Tobacco International (HK) Company Limited.

What are some entry barriers in the tobacco products market?

The tobacco products market is highly regulated. The manufacturers of tobacco products have to comply with stringent packaging and labeling regulations set by various regulatory bodies across different countries. Moreover, there are few yet dominant market players having strong distribution network and well-established customer base. Further, governments of different nations impose high duties on tobacco products to minimize their consumption. These are some of the entry barriers in the market.

Which region led the global tobacco products market in 2020?

In 2020, Asia-Pacific led the global tobacco products market owing to the rising number of tobacco consumers across India, China, Japan, among other countries, changing lifestyles of people, increasing disposable income level, and easy available of different brands of tobacco products in the region

Based on product type, which segment is projected to grow at the fastest CAGR in the global tobacco products market.

Based on product type, the other tobacco products segment is projected to grow at the fastest CAGR. Other tobacco products include e-cigarettes & vapes, snus, dissolvable, among others. The growing awareness about the hazardous effects of smoking among consumers is driving the demand for e-cigarettes, vapes, and snus.

Based on distribution channel, which segment held the largest share in the tobacco products market.

Based on distribution channel, the supermarkets and hypermarkets segment held the largest market share owing to high customer traffic in these stores coupled with availability of different brands of tobacco products under one roof.

What are the key factors influencing market growth?

The global tobacco products market is primarily driven by the rising consumption of tobacco products in developing regions such as Asia-Pacific and the Middle East & Africa.

The List of Companies - Tobacco Products Market

  1. Altria Group, Inc.
  2. British American Tobacco plc.
  3. Swedish Match AB
  4. ITC Ltd.
  5. Japan Tobacco International
  6. Imperial Brands
  7. Philip Morris Products S.A.
  8. Vector Group LTD.
  9. Pyxus International, Inc.
  10. China Tobacco International (HK) Company Limited

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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