Canada Tobacco Product Market Overview, 2028

Canada Tobacco Product Market Overview, 2028

Tobacco production and consumption in Canada have evolved significantly over the years, influenced by changing social attitudes, public health concerns, and government policies. The most common and widely recognized tobacco product is the cigarette, which consists of finely shredded or cut tobacco leaves wrapped in a paper cylinder. Smokeless tobacco products, such as snuff, and chewing tobacco are also popular in some regions. Cigars, both machine-made and hand-rolled, offer a different way to enjoy tobacco, often associated with luxury and tradition. Over the years, tobacco products have been the subject of extensive regulation and public health campaigns due to their well-established link to serious health issues, including cancer, heart disease, and respiratory problems. Canada has a limited number of tobacco manufacturing companies. Two notable manufacturers are Imperial Tobacco Canada and JTI-Macdonald Corp (Japan Tobacco International). Imperial Tobacco Canada, a subsidiary of British American Tobacco, produces brands like Du Maurier and Player's, while JTI-Macdonald is a subsidiary of Japan Tobacco International, known for brands like Export 'A' and LD. In Canada, government standards and regulations are implemented to minimize the adverse health effects of tobacco consumption. The Tobacco Act governs the production, sale, labeling, and promotion of tobacco products. It mandates the inclusion of graphic warning labels on cigarette packages, restricts tobacco advertising, and imposes high taxes on tobacco products to deter consumption. Plain packaging regulations have been introduced to reduce the appeal of tobacco branding. Additionally, smoking is heavily regulated in public spaces, with many provinces and territories implementing comprehensive smoking bans to reduce exposure to secondhand smoke.

According to the research report ""Canada Tobacco Product Market Overview, 2028,"" published by Bonafide Research, the market is anticipated to reach at more than USD 15 Billion by 2028. The Canadian tobacco products market was undergoing a significant transformation, primarily driven by shifting consumer preferences and the introduction of alternative products in response to the decline in traditional cigarette consumption. While cigarette consumption rates had been on a steady decline due to government regulations, health awareness campaigns, and high taxes, the market had witnessed notable growth in the alternative tobacco product sector. One of the most prominent trends contributing to this growth was the increasing popularity of reduced-risk alternatives among Canadian consumers, especially the younger generation. Products such as e-cigarettes and heated tobacco devices gained traction, offering a potentially less harmful way to consume nicotine. Companies had been actively introducing these alternatives to cater to changing preferences, and this strategy had been particularly successful in attracting young adults and smokers looking for a transition to less harmful options. The appeal of alternative products to youngsters was partly due to innovative flavors, sleek designs, and the perception that they might be a safer option than traditional cigarettes. In this evolving landscape, tobacco companies in Canada were diversifying their product portfolios to stay competitive and capitalize on the growing interest in alternatives.

The market is characterized by a clear segmentation based on product types, encompassing categories such as Cigarettes, Smokeless Tobacco, Cigar and Cigarillos, Next Generation Products, and Kretek. For a substantial period, Cigarettes have maintained a dominant position in the market, representing the traditional choice for tobacco consumers. Smokeless Tobacco and Cigar and Cigarillos follow closely in market share, catering to different preferences within the tobacco-consuming population. However, one of the most significant trends shaping the Canadian tobacco market is the growing prominence of Next Generation Products. These products, which include electronic cigarettes (e-cigarettes), heated tobacco devices, and other innovative alternatives to traditional smoking, have been gaining traction. As consumers become more health-conscious and seek reduced-risk options, Next Generation Products are seen as potential alternatives that are less harmful than traditional smoking. This shift in consumer behavior is indicative of a broader global trend towards harm reduction and the recognition of the health risks associated with conventional smoking. As regulations and awareness surrounding these alternative products evolve, it is anticipated that Next Generation Products will continue to grow in market share, potentially reshaping the dynamics of the Canadian tobacco industry in the coming years.

The distribution channels for tobacco products in Canada are characterized by a variety of retail avenues, and the market is segmented into several categories, including Specialty Stores, Hypermarkets/Supermarkets, Convenience Stores, Online, and Others. Historically, Specialty Stores have held a dominant position in this market, offering a wide selection of tobacco products to cater to different consumer preferences. Following closely behind are Hypermarkets and Supermarkets, where tobacco products are conveniently accessible alongside other household goods. However, a notable shift is anticipated in the distribution landscape with the emergence of online sales channels. The Online sales market for tobacco products is expected to experience substantial growth in the coming years. This trend aligns with broader e-commerce developments and changing consumer shopping habits, especially considering the convenience and discreetness of purchasing tobacco products online. As the regulatory landscape continues to evolve, including stricter point-of-sale marketing restrictions and increased health awareness, more consumers may turn to online platforms for their tobacco needs. This shift highlights the changing dynamics of the tobacco distribution industry, with online channels becoming increasingly relevant in catering to consumer demands.

Considered in this report:
•Geography: Canada
•Historic year: 2017
•Base year: 2022
•Estimated year: 2023
•Forecast year: 2028

Aspects covered in this report:
•Canada Tobacco Product market with its value and forecast along with its segments
•Various drivers and challenges
•On-going trends and developments
•Top profiled companies
•Strategic recommendation

By Product:
•Cigarette
•Smokeless Tobacco
•Cigar and Cigarillos
•Next Generation Products
•Kretek

By Distribution Channel:
•Speciality Store
•Hypermarket/supermarket
•Convenience Stores
•Online
•Others

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and list out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, and annual reports of companies, analyzing the government-generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers into regional aspects, tier aspects, age groups, and gender. Once we have primary data with us we started verifying the details obtained from secondary sources.

Intended audience:
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the Tobacco Product industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.