The government bases annual tobacco growing quantity on previous year cigarette consumption.
San Francisco, CA (PRWEB) June 16, 2013
Tobacco is grown in over 125 countries around the world on over four million hectares of land, a quarter of which are in China. Since the 1960s, the bulk of production has moved from the Americas to Africa and Asia. Land devoted to tobacco growing has been halved in the United States, Canada and Mexico, but has almost doubled in China, Malawi and Tanzania, says IBISWorld.
Tobacco leaf production in China is set to total 3.0 million tons in 2013, with flue-cured tobacco leaves accounting for about 89.2% of the total. Revenue for the Tobacco Growing industry in China has been growing at an annualized rate of 4.9% to $6.7 billion over the past five years, says IBISWorld.
The Tobacco Growing industry in China has an extremely low concentration level, as there are an estimated 2.6 million agricultural households in 2013, none of which have any significant market power. This is because the Chinese government fully controls the industry. The government implements its policies and plans for tobacco growing each year depending on the consumption of cigarettes in the previous year.
IBISWorld forecasts that the Tobacco Growing industry in China will develop steadily with rigid market demand and the successful introduction of new technology. Demand from downstream domestic tobacco leaf markets will be the main driver for industry development as well as quality improvements in tobacco leaf production. However, the growing pace is forecast to slow mainly due to the issuance of China's Tobacco Control Programmes at the end of 2012.
For more information, visit IBISWorld’s Tobacco Growing in China industry report page.
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IBISWorld Industry Report Key Topics
The Tobacco Growing industry in China is engaged in tobacco leaf production, including purchasing agricultural inputs such as plant seeds, plant bulbs, fertilizers, agricultural chemicals, pesticides, and growing facilities, and the processing of tobacco leaves, such as baking, drying and basking. This industry does not include re-drying of tobacco leaves.
Key External Drivers
Industry Life Cycle
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Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
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