Cigarette Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Cigarette Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The global cigarette market is expected to grow at a CAGR of 6.6% during the forecast period (2022 - 2027).

The popularization of cigarette industries is one of the sectors, that has been impacted substantially due to COVID-19 as using tobacco may cause lungs or throat infection which may leads to higher chance of complications, and also increase the probability of spreading the virus. The major reason that affected the demand as well as growth of the market during COVID-19, is the recognition of damaging health effects, caused by smoking. There is a definite evidence that smoking increases susceptibility for respiratory infections, weakens the immune system and is a major cause of underlying health conditions due to which covid virus could attack majorly.

Now a days giant manufacturers found it profitable to market flavored tobacco products, such as cigars, fruit flavoured cigarettes, smokeless tobacco, and related products, which gives them an edge over their competitors. However, changing lifestyle, continuous product innovation in terms of packaging size, orgnic ingredients, and balanced nicotine level gain consumer acceptance and belief that smoking reduces stress and anxiety which in turn propelling the growth of the market globally.

Furthermore, several factors, such as consumer knowledge and increase in awareness of products and services, through digital media and other sources, coupled with the advent of social media, are educating the consumers about the benefits of organics cigarette products which in turn, is driving the demand for organic and herbal cigarettes. Moreover, companies' offerings these products are increasing their investments in R&D, as well as marketing and expanding their distribution channels, to maintain their position in the market.

Key Market TrendsAdoption of Western Culture Fuel the Market

The rising number of female smokers, the strong distribution network of cigarette manufacturers and the popularity of flavored cigarettes are increasing due to the adoption of Western culture lifestyle among the individuals. With the rising female smokers the flavored tobacco products are gaining significant momentum and have become much more prevalent in the last few years across the world due to the frantic lifestyles in combination with the stiff deadlines, hectic schedule of balancing personal and professional life with erratic working hours in offices. These products are flavored smokeless tobacco, e-cigarettes, little cigars and cigarillos, large cigars hookah, and dissolvable, in addition to menthol cigarettes. Further, the sales of cigarettes through the convenience stores are gaining an increasingly important role in the launch of new cigarette brands or brand innovations by having large displays and a wide availability of brands globally. They are sold in a variety of flavors range from confectionery flavors to alcoholic beverages to herbs and spices.

China Holds a Significant Share In The Market

China is the world’s largest producer and consumer of tobacco, with over 300 million smokers. Over half of Chinese men smoke, consuming over 40% of the world’s cigarettes. The Chinese tobacco market is dominated by the China National Tobacco Corporation (CNTC), a state-owned enterprise (SOE) that is responsible for almost more than 90% percent of all cigarettes sold in China. The CNTC owns numerous brands, from large ones such as Hong Shuangxi, Yun Yan, and Zhongnanhai, to smaller regional brands and derivatives. Foreign companies can manufacture and sell their tobacco products, only through a joint venture with the CTNC. For example, Marlboro, one of the world’s largest tobacco brands, started the manufacturing process in China in 2008, after agreeing with the CNTC to promote Chinese brands overseas. Additionally, the increasing number of organized retail outlets makes tobacco products easily accessible and available to consumers. This is one of the primary factors that is actively driving the growth of the tobacco market across the country.

Competitive Landscape

The market is dominated by players, like British American Tobacco PLC, ITC Limited, Philip Morris Products SA, Altria Group Inc., and Japan Tobacco International SA. The leading players in the market studied enjoy a dominant presence worldwide. These players focus on leveraging opportunities posed by the emerging markets to expand their product portfolio, in order to cater to the requirements for various product segments, especially e-cigarettes. Owing to this factor, the key players are embarking on mergers and acquisitions as one of their key strategies to achieve consolidation and optimize their offerings. Advanced distribution network and manufacturing expertise give an upper edge to the manufacturers to expand their range of products across the region.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
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