Cigarette Market Size, Share, Growth, Trends, and Global Industry Analysis: By Form (Slim, Super Slim, King Size & Regular), By Flavour (Flavoured and Non-Flavoured), By Pricing (Premium, Economy & Mid/Ultra-Low), By Distribution Channel (Online and Offline) and Region Forecast 2019-2030

The global cigarette market size was valued at US$ 821.8 billion in 2023 and is projected to reach US4 963.6 billion by 2030, at a CAGR of 2.3% from 2024-2030. A cigarette is a small cylindrical roll of finely cut tobacco leaves wrapped in paper for smoking. Cigarettes typically contain a blend of tobacco along with various additives and are designed to be ignited at one end, allowing the smoker to inhale the smoke produced from the burning tobacco.

The key drivers which help in the growth of the market are addiction towards consuming cigarette and tobacco products, increasing number of variety of cigarettes launch leading to provoke people to use them is driving the growth of market.

However, factors which hamper the growth of market are taxation policies, price elasticity, government laws and rules on tobacco products. Product diversification and innovation like heated tobacco products (HTPs) and organic & natural cigarettes, consolidation of smaller players are providing key opportunities for market. Notable trends of market are the increasing shift towards alternative nicotine delivery systems, such as e-cigarettes and vaping products, sustainability and eco-friendly packaging.  

Key Players

The leading companies highlighted in the cigarette market report include such as British American Tobacco PLC One of the largest global tobacco companies headquartered in the UK ; Altria Group Inc has products like Marlboro, Virginia Slims targeted primarily at female smokers ; ITC Limited offers products like Classic, Gold Flake and others are Wills Navy Cut, Philip Morris Products SA, Golden Tobacco Ltd., Gudang Garam Tbk, Imperial Brands Plc, Japan Tobacco International. Also, a comprehensive analysis of industry verticals and market participants that provides a clear overview of the competitive landscape in relation to the sectors served by the company’s products and services, market share, service offerings, financial reports, significant developments, market strategy, competitive position, and geographic reach.

Key Takeaways

• Asia Pacific is the dominant in the market.
• The North America is expected to expand at highest CAGR from 2024 to 2030.
• Based on form, the regular segment dominated the market in 2023.
• Based on flavour, the flavoured segment has captured highest market share in 2023
• Based on pricing, the economy segment accounted the market share in 2023.
• Based on distribution channel, the offline segment has expected to dominate the market in coming forecast years.

Facts & Figures

• In November 2022, Philip Morris International Inc.'s new heat-not-burn tobacco heating technology, BONDS by IQOS, was introduced along with a variety of specifically designed tobacco sticks called BLENDS.
• In 2020, Eastern Company launched a new product of 10 cigarette packs of Cleopatra Box in the Egypt market. This product launch was a strategy to sustain in market.

Key Developments

In 2021, The major cigarette firm in India, ITC Ltd., has succeeded in building its cigarette business due to a supportive tax environment, a renewed emphasis on product design and innovation, and a broad distribution network. The business is expanding gradually and is doing well with a high-growth strategy.

Cigarette Market Segmentation

By Form: Among all the mentioned forms, the regular form is leading the market. There are several reasons why regular cigarettes remain the most widely used product on the market, such as deeply ingrained habits, cultural acceptance, affordability, convenience of usage, and the highly addictive nature of nicotine. Because they offer smokers a familiar, comfortable, and enjoyable experience, regular cigarettes continue to be the most widely used type of cigarette, particularly in places where alternatives are less accessible or poorly understood. But other nicotine-containing products, like e-cigarettes, are gaining popularity.

By Flavour: Among the two flavours, the flavoured segment is leading the market with the largest share in 2023, as flavoured cigarettes continue to be widely used due to their ability to enhance the sensory experience, which feels appealing to new and young smokers as it offers variety and customization. The smoother taste and aroma of flavoured cigarettes makes it attractive.

By Pricing: Based on pricing segment the economy sub-segment is leading the market. As, economy cigarettes are typically more affordable than premium brands. This makes them accessible to a larger segment of the population. To maintain their sustainability in the market economy brands, maintain their prices.  

By Distribution Channel: The offline segment is leading the cigarette market. The offline segment comprises of retail outlets such as hypermarket, supermarket, stores etc. These are more convenient to consumers rather than online as it consumes lot of time to deliver.  As offline stores are available as different locations which makes easier  for consumer to access it.