Tobacco Consumption Braves Unfavorable Market Conditions, According to a New Report by Global Industry Analysts, Inc.

Share Article

Improving economic conditions, rising consumer purchasing power, growing addiction to smoking, rise in number of female smokers, and flavor innovations are forerunners of growth in the tobacco industry. Yet, opportunities for tobacco products are being squeezed out by unfavorable government policies, taxation, anti-tobacco campaigns, fierce competition and presence of cheaper alternatives.

Global market for tobacco products is being driven by growth in regions such as Asia-Pacific and Europe. Asia-Pacific represents the largest regional market for tobacco products in the world both in terms of volume and value sales. Europe is the second largest market for tobacco products in the world. Leading tobacco producing countries in the world include China, India, Brazil, the US, Turkey, Zimbabwe and Malawi. Noteworthy factors driving growth include rising population, greater smoking addiction, favorable socio-economic factors, greater affluence, and its influence on the demand for premium international brands. Although smoking prevalence among adult males across developing markets is high, per capita consumption has remained relatively low when compared to developed markets.

Declining consumption of tobacco products across the developed economies has prompted tobacco companies to shift focus on thriving developing markets. In an attempt to expand the customer base, tobacco manufacturers are increasingly focusing on developing nations such as Asia, Eastern Europe, Latin America and the Middle East, where opportunities are driven by rising population and favorable socio-economic conditions. Supporting these initiatives and to help improve market share, tobacco manufacturers are adopting adroit marketing strategies, such as, re-launching products customized to appeal to women, and launch of low-risk products with real added value. This includes the launch of renewed offerings in exotic blends of cigarettes with vanilla, citrus, mint and menthol flavors and developing low-risk products that are with less toxins, reduced carcinogens and nicotine-free. Young women smokers prefer low tar content cigarettes and flavored varieties. Tobacco products most commonly consumed by women include hand-rolled smoking products (bidis); smoking pipes (hookahs); tobacco products chewed in betel leaf (pan) and burnt tobacco powder.

Segment wise, cigarettes account for a largest share of the tobacco products market both in terms of volume and value sales. Despite a slow down in consumption levels and a decline in prevalence rates, the absolute number of smokers has been on rise mostly due to increasing population, increasing disposable income, and the aura associated with smoking that influences youth in the age group of 19-24. China represents the single largest market for cigarettes in the world.

Cigars have traditionally failed to match up with cigarettes due to its premium price, low advertising budgets, weak promotional efforts, lack of tradition and mature male image often associated with the product. However, of late, cigars are being regarded as a status symbol and relatively less injurious to health than cigarettes. Cigarillos (cigars weighing less than 3 grams) represent one of the fastest growing product varieties in the cigar market. With aggressive marketing activities, rise in number of tobacco-only stores, and innovation in aromatic filter cigars, manufacturers have managed to make cigars appear fashionable to their young consumers. Popularity of Cuban cigars coupled with the emergence of mini cigars and flavored cigars have helped ignite interest in cigars among young adults, and female cigarette smokers.

Despite the opportunities, and growth potential in store, the world tobacco market faces its fair share of challenges manifested in the form of negative publicity, stringent government regulations, tax impositions, and rising health concerns associated with smoking. Growing health-consciousness, perception of smoking as an anti-social habit and mounting prices are chief factors eroding tobacco sales. Smoking is allied to be the main cause for lung cancer, and premature deaths. Tobacco companies worldwide have been prohibited to run any marketing campaigns to advertise their products and compelled to exhibit required statutory health warnings on products. Pricing pressure remains intense, as consumers are willing to switch brands in quest of more appealing promotions or prices.

The report titled "Tobacco: A Global Outlook" published by Global Industry Analysts Inc, provides a collection of statistical anecdotes, market briefs, and concise summaries of research findings. An easy guide to What, Why, When, How, Where, and Who of an industry, the report offers a bird's eye view of the global Tobacco industry. Annotated with 19 information-rich tables presenting market data findings, and analytical research projections, the entire discussion builds a macro-level perception of the industry in its totality (regional & global). The global market discussion offers insights into selective cigarette trends/issues, taut regulatory restrictions, health risks, and incisive insights into players, and competition (leading players ranked by sales, and production volumes, top cigarettes/tobacco brands ranked by retail sales, and sales of tobacco products by retail/distribution channels, among others).

The report also includes a quantitative evaluation of consumer/demographic/household purchasing patterns, and tobacco addiction statistics. Also included is a compilation of major mergers, acquisitions, and strategic corporate developments. The report offers a regional-level market discussion of major countries such as US, Canada, Japan, Europe (Germany, UK, Portugal), Asia (China, India, Indonesia, Korea), and Latin America (Brazil, Cuba). Discussion on the US market is richly detailed with descriptive, and statistical information. The report provides an indexed, easy-to-refer, fact-finder directory listing the addresses, and contact details of 248 companies worldwide

For more details about this research report, please visit

About Global Industry Analysts, Inc.:
Global Industry Analysts, Inc., (GIA) is a reputed publisher of off-the-shelf market research. Founded in 1987, the company is globally recognized as one of the world's largest market research publishers. The company employs more than 700 people worldwide and publishes more than 880 full-scale research reports each year. Additionally, the company also offers a range of more than 60,000 smaller research products including company reports, market trend reports and industry reports encompassing all major industries worldwide.

Global Industry Analysts, Inc.
Telephone 408-528-9966
Fax 408-528-9977
Email press @
Web Site


Share article on social media or email:

View article via:

Pdf Print

Contact Author

Public Relations
Visit website