PUBLISHER: DataM Intelligence | PRODUCT CODE: 1423525
PUBLISHER: DataM Intelligence | PRODUCT CODE: 1423525
The Global Cigarette Market reached US$ 867.5 billion in 2023 and is expected to reach US$ 910.2 billion by 2031 growing with a CAGR of 3.5% during the forecast period 2024-2031.
Advertising and marketing companies promoting tobacco by arranging campaigns have played a significant role in promoting cigarette consumption. Companies have employed various strategies to target specific demographics and create brand loyalty among consumers. Smoking cigarettes has been socially accepted as a symbol of sophistication or rebellion. Cultural factors, such as the entertainment industry in which smoking is being portrayed, lead to increased demand for the cigarette market.
Asia-Pacific witnessed the largest growth in the cigarette market covering more than 50.1% globally. Countries such as India, Japan and China are one of the largest countries for the growth and production of cigarettes because the consumption rate is high in these countries. The government is establishing new regulations to maintain the growth momentum of the product in the region. For instance 30 Sept 2023, China State Tobacco Monopoly Administration issued a notice importance of regulating e-cigarettes in which manufacturer, wholesalers and retailers need to follow new regulation which was introduced in 2021 and 2022. STMA has released two draft notices on restrictions for carrying or mailing e-cigarette products across borders.
Rising demand for E-cigarettes
E-cigarettes are marked as safer alternatives when compared with traditional cigarettes. E-cigarettes eliminate the combustion process, which leads to reduced harmful toxins and tar. The cigarettes attracted many consumers because they reduce the health risk associated with smoking. As they are user-friendly and have customizable settings has made an increased in the consumption of E-cigarettes.
E-cigarettes have various flavors like cotton candy, gummy bears and Froot Loops have attracted young consumers. Adding these flavors makes vaping more appealing and enjoyable, contributing to the growth of the industry. The different variety of flavors enhances the sensory experience and allows users to personalize their vaping experience according to their preferences.
Rise of Organic Cigarettes: A Health-conscious Alternative
Nowadays consumers are becoming more health-conscious and are seeking alternatives to traditional cigarettes. Consumers are adopting organic cigarettes as they are the best option and are made from organic tobacco, which is grown without the use of synthetic pesticides, herbicides or chemical fertilizers. Organic cigarettes are often eco-friendly in nature which has encouraged the key players to increase the investment in the market.
For instance, on 28 Feb 2018, a Researcher from Norwich in which they use tobacco plants for the production of medicines. A tobacco plant called Nicotiana tabacum is traditionally used for cigarette production, as Scientists found another technique called new plant breeding in which tobacco turns into an efficient plant and these plants are used in the medical and cosmetic industry.
Adverse Effects of Smoking on Health
Smoking leads to risks to individual health and cause major health issue. There are various harmful side effects of consuming cigarettes such as lung cancer, heart disease and respiratory disorder. Cigarettes contain toxic chemicals which affect the lungs and other organs. The factors reduced the demand for the cigarette market.
For instance, 16 million Americans have diseases caused by smoking. Smoking results in 41,000 deaths among adults and 400 deaths each year. Children are at a higher risk because smoking has a direct impact on respiratory infections such as severe asthma and slowed lung growth. The factors decrease the demand for the cigarette market.
The global cigarette market is segmented based on type, flavor, format, gender, distribution channel and region.
Growing Society Influence of Tobacco on Female Smokers
Due to a shift in society's culture, norms and attitudes towards women smoking changed and the changing conditions are expected to improve women's share in the market by up to 29.9% in the forecast period. Tobacco companies specifically target women through advertising and marketing campaigns. The has influenced women's perception of smoking as a symbol of independence, sophistication and rebellion.
For instance, on 16 April 2021, Cigarettes with flavor capsules, particularly menthol-flavored ones, are gaining popularity among young people in Australia. Qualitative research focused on how young women perceive and engage with menthol flavor capsule cigarettes in their smoking practices. Face-to-face interviews were conducted with 41 young women smokers in Australia, using a constructivist grounded theory approach. The findings indicate that young women associate menthol capsule cigarettes with a fresh and improved taste.
Rise in population and presence of key players in Asia-Pacific
Asia-Pacific witnessed significant a rise in demand for the cigarette market and countries like India, China is expected to hold more than 2/3rd of the regional market. The rise in population leads to increased demand for cigarettes. As there is a shift toward urbanization and economic development, that leads to increased demand for disposable incomes. The rising smoking rate in the region leads to forcing the government to build regulations to reduce the health impact of cigarettes on the population which acts as a major hurdle for the growth of the market in the region. For instance, on 2 Jan 2019, The world's largest cigarette maker and a state monopoly, China National Tobacco Corp., plans to list its international unit, on the Hong Kong stock exchange. The international unit primarily procures overseas tobacco leaves for the parent company, which dominates the global cigarette market.
The major global players include British American Tobacco PLC, 22nd Century Group, China National Tobacco Corporation, Philip Morris Products SA, ITC, Gudang Garam, RLX Technology, Swedish Match, Japan Tobacco International SA and Imperial Brands.
The pandemic has caused disturbances in the global supply chain, including the tobacco industry. Restrictions on movement, lockdown measures and reduced workforce have affected the production, distribution and availability of cigarettes. COVID-19 has led to changes in consumer behavior, including a shift in priorities and spending patterns.
Smoking and respiratory health have become even more apparent during the pandemic, as COVID-19 primarily affects the respiratory system. Individuals who frequently smoke are at higher risk of developing severe symptoms if they contract the virus. Governments globally have implemented various measures to curb the spread of COVID-19, including restrictions on public gatherings, social distancing requirements and lockdowns.
Russia-Ukraine War Impact
The conflict between countries such as Russia and Ukraine has the potential to disrupt the supply chains of various products, including cigarettes. Disruptions in the transportation of tobacco and other materials necessary for cigarette production lead to shortages or limited availability of certain brands or cigarette products.
At times of conflict, governments implemented new regulations or policies to address various aspects of the crisis. The could include regulations related to tobacco control, such as increased taxes on cigarettes or stricter advertising restrictions. The changes may impact the cigarette industry and consumer behavior.
The global cigarette market report would provide approximately 77 tables, 79 figures and 181 Pages.
Target Audience 2024
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