United States (USA) Tobacco Product Market Overview, 2028

United States (USA) Tobacco Product Market Overview, 2028

Tobacco consumption in the United States has undergone significant changes over the past few decades. Historically, tobacco use was a prevalent and culturally accepted practice in the United States, with high smoking rates throughout the 20th century. According to the Centers for Disease Control and Prevention, The United States is the fourth largest tobacco-producing country in the world, following China, India, and Brazil. The tobacco industry is heavily regulated in the United States. The U.S. Food and Drug Administration (FDA) oversee the industry marketing, advertising, and distribution of tobacco products to protect public health. According to government survey data released in April 2023, smoking rates in the United States fell to their lowest point in 2022, with 1 in 9 adults reporting being a smoker. In 2022, the percentage of adult smokers dropped from 12.5 percent in 2020 and 2021 to about 11 percent. The United States is home to several major tobacco product manufacturing companies that have a significant presence in both the domestic and international markets. Some of the prominent tobacco companies in the United States include Altria Group, Reynolds American Inc. (a subsidiary of British American Tobacco), and Philip Morris USA (a subsidiary of Altria). These companies are known for producing well-known cigarette brands such as Marlboro, Camel, Newport, and more. In addition to traditional cigarettes, they have diversified their product lines to include smokeless tobacco products like snuff and chewing tobacco. Furthermore, they have ventured into the Reduced Risk Products (RRP) market, with a focus on e-cigarettes and other alternative nicotine delivery systems. More than 16 million adults in the United States have a disease caused by smoking cigarettes, and smoking-related illnesses lead to half a million deaths each year. Healthy People 2030 focuses on preventing people from using tobacco products and helping them quit.

According to the research report ""United States Tobacco Product Market Overview, 2028,"" published by Bonafide Research, the market was valued at more than USD 110 Billion in 2022. Historically, the tobacco market in the United States has seen a decline in cigarette consumption due to increased awareness of the health risks associated with smoking, stringent regulations, and the popularity of smoking cessation programs. One notable shift is the emergence of alternative tobacco and nicotine products, such as e-cigarettes and vaping devices, which have gained popularity among young adults and teenagers. These products are often perceived as potentially less harmful than traditional cigarettes, leading to their increased use. Flavored e-cigarettes and novel tobacco products have indeed proven to be particularly appealing to a younger demographic in the United States. The introduction of a wide variety of enticing flavors, such as fruit, dessert, and candy, has not only transformed the landscape of the tobacco industry but has also significantly contributed to the rise in popularity among young consumers. These flavors, often with colorful and attractive packaging, have created a perception that these products are less harsh and more enjoyable compared to traditional cigarettes. This appeal to a younger audience has raised concerns about an increase in youth initiation and nicotine addiction. This evolving landscape presents growth opportunities for the industry as it adapts to meet consumer demands. However, the overall growth of the tobacco market in the United States is likely to be tempered by ongoing public health campaigns, increasing restrictions on tobacco marketing, and a continued emphasis on harm reduction.

The United States tobacco products market is distinctly segmented based on product types, with categories including Cigarettes, Smokeless Tobacco, Cigar and Cigarillos, Next Generation Products, and Kretek. Historically, Cigarettes have held the largest market share, reflecting the long-standing popularity of traditional smoking. However, in recent years, the landscape has been evolving. Smokeless Tobacco, which includes products like snus and chewing tobacco, has gained a notable presence as consumers seek alternatives to combustible cigarettes. Furthermore, Next Generation Products, such as electronic cigarettes and heated tobacco devices, are increasingly gaining attention and market share. These devices heat tobacco rather than burning it, which is believed to reduce the release of harmful chemicals found in cigarette smoke. Popular brands include IQOS by Philip Morris and Glo by British American Tobacco. These products are seen as potentially less harmful alternatives to traditional smoking, and their growth is fueled by evolving regulations and shifting consumer preferences.

Based on the distribution Channels, the report is distinguished into Specialty Stores, Hypermarket/ supermarket, Convenience Stores, Online, and Others. In the US, specialty stores distribute the majority of tobacco products and are also the main means of distribution for these products. In the United States, smoking has deep cultural roots, and tobacco enthusiasts have always frequented specialist tobacco shops. These businesses sell a range of tobacco products, including pipe tobacco, cigars, and specialized brands of cigarettes. Their appeal has been aided by the custom of patronizing these businesses in quest of unique and superior tobacco products. To satisfy the interests of affluent patrons, specialty tobacco stores frequently carry a large assortment of tobacco products. This comprises unique pipe tobaccos, specialty cigarettes, premium cigars, and an assortment of accessories. Customers are drawn to the extensive product range because it offers unique and superior solutions. Exclusive and difficult-to-find brands that are not easily found in mainstream retail establishments are frequently carried by specialty stores. This makes them a place to go for anyone looking for unusual and uncommon tobacco products. Specialty stores that sell tobacco goods are able to implement stricter age verification procedures, which helps to deter minors from buying tobacco.

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

Aspects covered in this report:
•United States 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.