Cigarette Market - Growth, Trends, and Forecasts (2023 - 2028)

Cigarette Market - Growth, Trends, and Forecasts (2023 - 2028)

The global cigarette market is expected to register a CAGR of 6.6% during the forecast period.

• Nowadays, giant manufacturers find it profitable to market flavored tobacco products, such as cigars, fruit-flavored cigarettes, smokeless tobacco, and related products, which gives them an edge over their competitors. Moreover, changing lifestyles, continuous product innovation in terms of packaging size, organic ingredients, and balanced nicotine levels gain consumer acceptance and belief that smoking reduces stress and anxiety, propelling the market's growth globally.
• In a study conducted by the Center for Disease Control and Prevention (CDC), companies such as Marlboro, Newport, and Camel, who designed marketing campaigns specifically aimed at attracting the attention of young people, were found to be the most heavily involved in marketing campaigns. As a result of this, they were regarded as the most preferred brand by youths. Tobacco has become a significant part of people's lives over the last decade and is consumed on a daily basis. During the next few years, this factor will likely play a significant role in driving the overall demand for cigarettes in the market.
• Furthermore, several factors, such as consumer knowledge and an increase in awareness of products and services, through digital media and other sources, coupled with the advent of social media, are educating 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, and marketing and expanding their distribution channels, to maintain their position in 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 lifestyles among individuals. Moreover, most vendors are adopting online retail strategies to reduce costs and increase their margins, which is expected to benefit the market during the forecast period.
• Thus, with the growth of e-commerce, many retail stores are broadening their offerings by introducing cigars and flavored cigarettes such as menthol-flavored, clove-favored, mint-flavored, etc., which, in turn, makes it relatively easy to procure. This drives faster product adoption, resulting in healthy market growth.
• To cater to the preferences of various subgroups of smokers, including women and younger consumers, cigarette manufacturers have optimized product appeal by focusing on products with specific design features for subgroups of tobacco users. Variations in the smoothness/harshness balance, nicotine effect, mouth feel, and draw resistance have all been used.
• Further, the rapid uptake of flavored cigarettes among youth was not only because of marketing but also because of modifications in product design that affect sensory perceptions, which attract more children toward smoking. This, in turn, is boosting the cigarette market growth globally.

• In terms of market share, Asia Pacific holds the largest share of the global market. This region is expected to grow faster in the near future due to the improvement of offline infrastructure, as well as extensive brand marketing campaigns by major companies operating in key markets such as China, India, Bangladesh, and the Philippines. Further, companies are paying more attention to the needs of their customers and are introducing flavored cigarettes, which are particularly popular among the younger generation.
• Additionally, the increasing number of organized retail outlets makes tobacco products easily accessible and available to consumers. This is one of the primary factors actively driving the growth of the tobacco market across the region.
• Asia's developing countries are experiencing an increase in tobacco users. According to the World Health Organisation, China is the world's largest producer and consumer of tobacco, taking the lead in both production and consumption. China has a population of more than 300 million smokers, making up nearly one-third of the total number of smokers worldwide. Among adult men, more than half are currently smoking tobacco products.
• The Chinese tobacco market is dominated by the China National Tobacco Corporation (CNTC), a state-owned enterprise (SOE) responsible for selling most of the cigarettes in China. The CNTC owns numerous brands, from large ones such as Hong Shuangxi, Yun Yan, and Zhongnanhai, to smaller regional brands and derivatives.

Players like British American Tobacco PLC, ITC Limited, Philip Morris Products SA, Altria Group Inc., and Japan Tobacco International SA dominate the market. The leading players in the market studied enjoy a dominant presence worldwide. These players focus on leveraging opportunities posed by emerging markets to expand their product portfolio to cater to the requirements of 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 networks and manufacturing expertise give an upper edge to the manufacturers to expand their range of products across the region.

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support