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Agriculture

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The tobacco market - United States

An analysis with all the essential information for a clear, complete and quantified view of this market.

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Study Overview

Tobacco comes from the South American herb Nicotiana Tabacum. The leaves of this herb contain between 2 to 8% of nicotine. The scope of this study will include the production, distribution and sales of tobacco and its by-products, such as cigarettes, cigars, cigarillos, roll-your-own tobacco, chewing tobacco and snuff. It will also discuss new forms of consumption that have emerged on the market, such as electronic cigarettes. The global market for tobacco stayed stable between 2014 and 2019. However, going forward it is expected to grow more. Primarily, it is the smokeless tobacco segment, which is driving this growth, with an expected CAGR of 10% between 2019 and 2024. This comes as consumers are looking for healthier alternatives of nicotine consumption. In aggregate terms, however, cigarettes still account for around 88% of sales in this industry. [SwedishMatch] Moreover, the global market is concentrated and dominated by China National Tobacco Corporation holding a 44% market share, followed by Philip Morris (14%) and British American Tobacco (12%). [tobaccofreekids] In the US, cigarette sales are decreasing in light of heavy regulation. This is the result of high prices and heavily regulated marketing. Moreover, cigarette packaging is increasingly labelled with precautions around the harmful effects of smoking. However, despite continuous restrictions on marketing, aggregate figures remain large; the US Government reports that in 2018 $1 million was spent every hour on marketing. The US state with the largest proportion of smokers in 2018 was West Virginia (with 25.3% of adult population), followed by Kentucky and Arkansas. The rise of electric cigarettes is agrowing trend in the US, particularly amongst the younger population. In particular, JUUL holds a market share of 57.8%. Moreover, flavored electronic cigarettes appeal to students in middle-and high-school. Marlboro is the market leader and hold a firm position at the top. The most sold brands are Marlboro, Newport and Camel.