Tobacco Market: Global Market Estimation, Dynamics, Regional Share, Trends, Competitor Analysis (2017-2021) and Forecast (2022-2028)

Description

Tobacco Market size was valued at USD 1,183.2 million in 2021 and is expected to grow at a CAGR of 4.1% over 2022–2028. Global trends showed that tension brought on by lockdowns merely increased consumption. During this time, the number of new smokers remained relatively modest. The consumers who turned to heavy smoking during the epidemic are anticipated to have developed a new habit, which will be advantageous to the industry. Introducing a new line of tobacco products indicates a slight rise in both the population of smokers and the proportion of persons who try the new goods. Interesting advertising tactics have been used successfully to achieve notable achievements, maintain market dominance, and stay competitive. For instance, racial or demographic groups receive more aggressive marketing and advertising of certain products. According to estimates from the Centre for Disease Control and Prevention (CDC), companies like Marlboro, Newport, and Camel, whose marketing campaigns explicitly targeted young people, were among the top marketers. They became the brand that young people liked as a result. Over the past ten years, tobacco has become a significant part of most people’s lives, and it is predicted that this element will fuel demand for all products in the coming years. Moreover, governments throughout the world rely heavily on tobacco taxes to fund their operations. Due to lax regulatory frameworks, developing economies are increasingly driving market expansion. Laws, excise taxes, country-specific cigarette taxes, and other levies will change prices. The introduction of next-generation products, anticipated to be the sector with the quickest growth, is expected to benefit the tobacco market. Due to their perception that NGPs have a considerable market share advantage over other products, major firms are making substantial investments in their development. For instance, in August 2021, Japan Tobacco Inc. introduced the Ploom X, a next-generation heated device. The JT Group’s next-generation wild tobacco stick technology is called Ploom X. It has Bluetooth capabilities that allow customers to lock and unlock the device, check the battery level, and perform other tasks by connecting with their smartphone.

Key Developments: 

In November 2021, Scandinavian Tobacco Group acquired a majority stake in Moderno Opificio del Sigaro Italiano, MOSI – an Italian cigar company with approximately 40 employees and production facilities in Orsago in the northern part of Italy. With a majority stake in MOSI, the company acquired modern cigar-making craftsmanship and a premium brand that increased its offerings to consumers and the opportunity to further boost its revenue share.

In September 2021, the company announced market testing of its heated tobacco products through a national rollout in Greece. The testing is part of the company’s new strategy of building a targeted and sustainable Next Generation Product (NGP) business. The valuable consumer insights gained from the pilot initiatives in Greece and the Czech Republic were instrumental to the scale and pace of further market rollouts.

In March 2021, Phillip Morris International announced its strategy to derive 50% of its revenue from its smoke-free product portfolio. The company aims to achieve this through its heated tobacco products.