(I-BusinessNews.Com, April 15, 2022 ) The tobacco market size is estimated to reach $914 billion by 2027, growing at a CAGR of 3.6% during the forecast period 2022-2027. Tobacco is a composition of the nicotine-abundant leaves of an American plant, which are cured by a procedure of drying and fermentation for smoking or chewing. Different Nicotiana species, typically mentioned as tobacco plants, are cultivated as ornamental garden plants. Nicotiana tabacum is cultivated globally for the generation of tobacco leaf for cigarettes and additional tobacco products. Nicotiana tabacum belongs to the family Solanaceae. Nicotine from chewing tobacco can belong to the class of stimulants by serving as a stimulant and/or it can serve as a depressant to the central nervous system. Inhalation of nicotine brings about the discharge of the hormones: epinephrine and dopamine. This chemical is accountable for the “jolt” users get when smoking. Epinephrine brings about a boost in relaxation and pleasure.
The increasing count of smokers across the world in conjunction with the introduction of novel products inclusive of different flavored tobacco products like clove cigarettes and menthol cigars is set to drive the Tobacco Market. The soaring attention on premium tobacco products generated with flue-cured tobacco and fine whole leaf acting as stimulants is set to propel the growth of the Tobacco Market during the forecast period 2022-2027. This represents the Tobacco Industry Outlook.
Tobacco Market Segment Analysis – By Product Type:
The Tobacco Market based on product type can be further segmented into Cigarettes, Cigars And Cigarillos, Smoking Tobacco, Smokeless Tobacco, and Next Generation Products. The Cigarettes Segment held the largest market share in 2021. This growth is owing to the soaring intake of flavored and unflavored cigarettes among the millennials and the employed across the world. Nicotine existing in cigarettes belongs to the class of stimulants and acts as a stimulant. The increasing count of attractive product launches is further propelling the growth of the Cigarettes segment.
Furthermore, the Next Generation Products segment is estimated to grow with the fastest CAGR of 4.1% during the forecast period 2022-2027 owing to the soaring inclination of consumers towards less injurious tobacco products over cigarettes including stimulants like nicotine largely ascribed to the requirement for a healthier lifestyle.
Tobacco Market Segment Analysis – By Distribution Channel:
The Tobacco Market based on distribution channels can be further segmented into Supermarkets And Hypermarkets, Convenience Stores, Specialty Stores, Online Stores, and Others. The Supermarkets And Hypermarkets Segment held the largest market share in 2021. This growth is owing to the effortless accessibility of all kinds of Tobacco products across diverse brands in one place. Tobacco products like cigarettes include stimulants like nicotine. The active role played by supermarkets and hypermarkets in making novel trends in tobacco products like smokeless tobacco and e-cigarettes effortlessly accessible to consumers is further propelling the growth of this segment.
Furthermore, the Online segment is estimated to grow with the fastest CAGR of 4.2% during the forecast period 2022-2027 owing to the surging application of e-commerce websites stocking varied assortments of Tobacco products digitally like cigarettes including stimulants like nicotine with the user simply required to select, click and place orders frequently at discounted prices with home delivery options available in the wake of the COVID-19 pandemic in conjunction with the existence of dedicated online tobacco shops like Smokehouse and Pipe Tobacco.
Tobacco Market Segment Analysis – By Geography:
The Tobacco Market based on geography can be further segmented into North America, Europe, Asia-Pacific, South America, and the Rest of the World. Asia-Pacific (Tobacco Market) held the largest share with 33% of the overall market in 2021. The growth of this region is owing to the existence of the biggest global producers and consumers of tobacco like China and India in the region. Tobacco is the product prepared from the cured leaves of numerous plants in the Nicotiana genus of the Solanaceae family. The lax in regulations in countries like India permitting smoking in public places in conjunction with the proliferating accessibility of tobacco products in contemporary retail outlets in the region is further propelling the growth of the Tobacco Market in the Asia-Pacific region.
Furthermore, the North American region is estimated to be the region with the fastest CAGR rate over the forecast period 2022-2027. This growth is owing to factors like an accelerated increase in health awareness of consumers seeking healthier options resulting in heightened financing by makers in R&D of numerous low-risk tobacco products in the North American region. The proliferating intake of cigarettes involving stimulants like nicotine is further fueling the progress of the Tobacco Market in the North American region.
Tobacco Market Drivers
Soaring Demand For Cigarettes Are Projected To Drive The Growth Of Tobacco Market:
It has been noted that cigarettes are the most recognized tobacco product owing to different determinants like convenience, the experience provided, and affordability. The frantic lifestyles in conjunction with the tight deadlines and erratic working hours in offices have fuelled the demand for cigarettes. The surging demand for cigarettes is attributed to the conviction of consumers that smoking cigarettes supports the minimization of stress and anxiety in conjunction with the scientific viewpoint that nicotine belongs to the class of stimulants. Cigarettes can be partaken in a brief period of time, disposed of with convenience, and the smell can be concealed peacefully when compared to additional tobacco products. The pervasiveness of flavored cigarettes, which are accessible in an extensive assortment of flavors is anticipated to further impel the demand for combustible cigarettes. The proliferating demand for cigarettes is therefore fuelling the growth of the Tobacco Market during the forecast period 2022-2027.
Novel Trends In Tobacco Are Expected To Boost The Demand Of Tobacco Market:
Application of smokeless tobacco products includes chewing, sniffing or positioning the product between the gum and the cheek or lip. Smokeless tobacco products are generated in different kinds like chewing tobacco, snuff, snus, and dissolvable tobacco products. Smokeless tobacco products generally include more than 3000 components. Tobacco is the common name of numerous plants in the Nicotiana genus of the Solanaceae family, and the general term for any product made from the cured leaves of these plants. An electronic cigarette is an electronic device that imitates tobacco smoking. It includes an atomizer, a power source like a battery, and a container like a cartridge or a tank. Rather than smoke, the user inhales the vapor. Utilizing an e-cigarette is frequently termed “vaping”. The atomizer is a heating element that atomizes a liquid solution termed e-liquid. E-cigarettes are energized by taking a puff or pressing a button. Some appear like traditional cigarettes, and most versions are reusable. These kinds of novel trends in Tobacco are driving the growth of the Tobacco Market during the forecast period 2022-2027.
Disadvantages Of Tobacco Smoking Are Hampering The Growth Of The Tobacco Market:
Tobacco smoke includes nicotine which belongs to the class of stimulants which creates a robust physical and physiological chemical injurious habit. Nicotine is a Vasoconstrictor and a nerve toxin and it has been categorized as a class I insecticide. The damage is the greatest when tobacco smoke is inhaled into the lungs. Numerous investigations have established that nicotine is normally removed from the body within 2-3 days. However, it has also been established that physical and psychological symptoms can continue for a lengthier period of time. Tobacco includes toxins. There are more than 4000 chemicals in tobacco out of which 100 are recognized as poisons and 63 are recognized carcinogens. Nicotine is frequently considered the most dangerous substance in tobacco. Others include arsenic, cyanide, carbon monoxide, formaldehyde, and ammonia bromide. Tobacco smoking can bring about lung cancer. The disadvantages of tobacco smoking are thus hampering the growth of the Tobacco Market.
Tobacco Industry Outlook
Product launches, mergers and acquisitions, joint ventures, and R&D Activities are key strategies adopted by players in the Tobacco Market. Key companies of this market are:
Altria Group Inc.
Reynolds American Inc.
British American Tobacco p.l.c. (BAT) Ltd.
Japan Tobacco Inc
Imperial Brands PLC
Philip Morris International Inc.
China National Tobacco Corporation
Pyxus International, Inc.
In July 2021, Japan Tobacco Inc. (JT) declared the official introduction of Ploom X, its next-generation heated tobacco device, on August 17, 2021. Ploom X will steadily be made accessible across Japan, inclusive of convenience stores and chosen tobacco retail stores. It was reported that Ploom X would also be accessible for pre-launch sale at the CLUB JT online shop from July 26, 2021.
In December 2020, it was reported that British American Tobacco p.l.c. (BAT) became the earliest tobacco firm to issue a Human Rights Report. The report concurs with United Nations (UN) Human Rights Day and emphasizes the firm’s dedication and activities to safeguard human rights across its global business and supply chain. BAT has also declared dedication to targeting zero child labor in its agricultural supply chain by 2025.
In May 2020, Altria Group Inc. is accelerating on its 10-year journey to a non-combustible future, partially by constructing enthusiasm and impetus around its oral nicotine and heat-not-burn tobacco products. At the conclusion of the first quarter of 2020, Altria’s on! brand of nicotine pouches was marketed in over 28,000 stores, inclusive of the top five convenience store chains by volume, as per Altria CEO Billy Gifford. Additionally, newly redesigned on! cans are currently accessible, with retail perceptibility being increased by way of premium fixture space in majority of stores.
Geographically, Asia-Pacific Tobacco Market accounted for the highest revenue share in 2021 and it is poised to dominate the market over the period 2022-2027 owing to the surging count of organized retail outlets making tobacco products prepared from Nicotiana tabacum effortlessly accessible to consumers in the Asia-Pacific region.
Tobacco Market growth is being driven by the increasing inclination towards smoking and the stable demand for tobacco products prepared from Nicotiana tabacum. However, binding regulations and constraints being enforced in different countries targeting minimization of tobacco intake is one of the major factors hampering the growth of the Tobacco Market.
Tobacco Market Detailed Analysis on the Strength, Weakness, and Opportunities of the prominent players operating in the market will be provided in the Tobacco Market report.
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