Cigarette Market is predicted to reach USD 1,176.72 billion at a CAGR of 3.59% during the forecast period 2023-2032

Market Research Future (MRFR) has published on the “Cigarette Market”

Cigarette Market Highlights

The global cigarette market is projected to witness significant growth during the review period, exhibiting a CAGR of 3.59%. The market was estimated to be USD 818.90 billion in 2022 and is expected to reach a value of USD 1,176.72 billion by the end of the forecast period (2023-2032).

A cigarette is a cylindrical-shaped tobacco product that is typically wrapped in thin paper and contains processed tobacco leaves. It is designed to be smoked by lighting one end and inhaling the smoke produced. Cigarettes are one of the most common forms of tobacco consumption worldwide. Cigarettes usually consist of three main components: tobacco filler, cigarette paper, and the filter. The tobacco filler is a blend of processed tobacco leaves that may be flavored or treated with various chemicals. Cigarette paper is usually made of cellulose fibers and is responsible for containing tobacco and providing structural integrity. The filter, found at one end of the cigarette, is often made of cellulose acetate and is intended to reduce the amount of particulate matter and harmful chemicals inhaled during smoking.

One significant driver in the cigarette market is an increase in the number of smokers. This driver refers to the growth in the population of individuals who engage in smoking behavior. Understanding the factors contributing to an increase in smokers can shed light on the market dynamics and demand for cigarettes. The overall growth in the global population can contribute to an increase in the number of smokers. As more individuals enter adulthood and start smoking, the smoker population expands. Changes in population demographics, such as shifts in age distribution or urbanization, can influence smoking prevalence. For instance, in some regions, there may be a higher concentration of young adults who are more likely to experiment with smoking. Marketing efforts by tobacco companies can influence smoking initiation and contribute to an increase in smokers. Targeted advertising, promotional activities, and product innovation may attract new consumers and lead to higher smoking rates.

The presence of high level of nicotine in the cigarette have resulted in addiction among the population. The rapid absorption of nicotine into the bloodstream when smoking contributes to the maintenance of addiction. Nicotine levels in the body decrease over time, leading to the urge for more cigarettes to replenish nicotine levels and alleviate withdrawal symptoms. This cycle sustains the demand for cigarettes and drives continued tobacco use.

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Market Synopsis

One significant opportunity in the cigarette market is the expansion into emerging markets, which present untapped potential and a growing consumer base. Emerging markets, particularly in regions like Asia, Africa, and Latin America, are experiencing rapid population growth, urbanization, and rising disposable incomes. These factors contribute to an expanding consumer base and increased demand for tobacco products. In some emerging markets, regulatory frameworks and restrictions on tobacco products may be relatively less stringent compared to developed markets. This can create favourable conditions for market entry and expansion. As emerging markets undergo social and cultural transformations, there is an opportunity to cater to evolving consumer preferences. This includes understanding local tastes, and preferences for specific cigarette types or flavors, and adapting marketing strategies to resonate with the target audience. Emerging markets present an opportunity for companies to introduce innovative products or adapt existing offerings to suit local preferences. This include developing flavors or variants specifically tailored to the tastes of the target market.

According to the Centers for Disease Control and Prevention (CDC), more than 68% of current smokers in the United States express a desire to quit, but only around 7% successfully quit each year. The addictive nature of nicotine plays a significant role in the low success rates of smoking cessation. Nicotine dependency from cigarette smoking can also act as a gateway to the use of other tobacco products, such as smokeless tobacco or e-cigarettes. Nicotine addiction often persists even when smokers attempt to switch to alternative nicotine delivery systems, reinforcing continued tobacco use. Numerous studies have established that nicotine is highly addictive. The Surgeon General's Report on Smoking and Health states that nicotine is as addictive as drugs like heroin or cocaine.

According to the World Bank database, there is population growth in India in the last 5 years. The increase in population has led to an increase in young populations leading to an increase in the number of smokers. As more individuals reach adulthood, they are susceptible to experimentation with smoking or influenced by social and cultural factors that promote smoking behavior. The larger the population, the greater the potential pool of smokers, contributing to an increase in demand for cigarettes. According to fact sheet published by WHO, 22.3% of the global population used tobacco, 36.7% of all men and 7.8% of the world’s women as of 2020. Over 80% of the world's 1.3 billion tobacco users live in low- and middle-income countries. This increase in the smoker population among the middle and high school students have resulted in the growth of the cigarette market.

However, social stigma refers to the negative societal perceptions and judgments associated with certain behaviors or characteristics. In the case of smoking, social stigma has been steadily increasing over the years due to growing awareness of the health risks and the impact of secondhand smoke. The stigmatization of smoking can discourage individuals from starting or continuing to smoke, thus affecting the cigarette market. Cultural norms and values are dynamic and subject to change. In many societies, smoking is no longer seen as glamorous or socially desirable, but rather as a habit with negative consequences. This shift in cultural norms influences individual attitudes toward smoking. Public figures, celebrities, and influencers have a powerful impact on shaping public opinion. When influential individuals publicly advocate against smoking or choose to quit smoking themselves, it can contribute to changing attitudes toward smoking. The implementation of smoking bans in public places, such as restaurants, bars, and offices, has reduced the acceptability of smoking in society. These bans not only protect non-smokers from secondhand smoke but also contribute to the stigmatization of smoking. The social stigma associated with smoking can lead to social isolation, discrimination, and negative perceptions of smokers. Consequently, individuals may be less inclined to start smoking or may attempt to quit due to the fear of being judged or ostracized by their social circle. Attitudes towards smoking have undergone a significant transformation in recent years. Increased health consciousness has prompted individuals to adopt healthier lifestyles, including avoiding tobacco use. This has led to a decline in the social acceptability of smoking. Younger generations tend to be more health-conscious and have been exposed to anti-smoking messages from an early age. This has resulted in lower smoking rates among younger populations and a shift in their perception of smoking.

The combination of social stigma and changing attitudes toward smoking has led to a decline in cigarette consumption in many countries. As individuals become more aware of the health risks, the demand for tobacco products decreases. This has prompted the implementation of stricter regulations, higher taxes, and anti-smoking policies, further impacting the cigarette market.

Competitive Landscape

The high competition among the players have encouraged the players to produce quality products in the market. In order to build new and quality products, numerous companies benefit from mergers, acquisitions, and product development. To preserve their positions and broaden their geographic reach, the players in the worldwide flavred syrup market are using a variety of strategies, including expansion, mergers and acquisitions, alliances, joint ventures, and product launches. To gain the largest possible market share, new product launch was the growth strategy that was most frequently used by market participants.

There are numerous international, national, and regional players in the worldwide cigarette industry. There is a lot of competition in this sector, and everyone is trying to increase their portion of customers' wallets. When comparing prices and quality, as well as product availability across regions, different suppliers will use different metrics. In order to be competitive, suppliers must offer reasonably priced, high-quality cigarettes. Market and economic conditions, government laws, and technological progress all affect how quickly and how large market actors can expand. As a result, businesses in this sector need to concentrate on increasing output and refining their offerings to keep up with consumer demand. The companies in the market are investing heavily in creating new products. Although worldwide companies account for the vast majority of sales, smaller regional and local firms are also present.

Key Developments & Growth Strategies

Partnerships

• British American Tabacco announced an investment in Charlotte’s Web Holdings, Inc. The company is in innovative hemp extract wellness products.


• Altria Group, Inc announced a partnership with JT Group (JT) for an expanded heated tobacco portfolio


• The JT Group, through its subsidiary JTI announced that it has entered into a joint venture with Altria Group to market and commercialize heated tobacco sticks (HTS) products in the U.S.


• Philip Morris International Inc announced a collaboration with KT&G. The company is one of South Korea’s leading tobacco and nicotine manufacturer.

Acquisitions

• Altria Group, Inc announced that it has completed the acquisition of NJOY Holdings, Inc.


• Imperial Brands has announced the acquisition of a range of nicotine pouches from TJP Labs.

Product Launches

• Imperial Brands announced the launch of the first all-new upgrade of its Pulze heated tobacco device.

By Region

• North America: The North American market is dominated by major tobacco companies such as Philip Morris International, British American Tobacco, and Japan Tobacco International. While cigarette consumption has been declining, there is a growing interest in alternative products like e-cigarettes and heat-not-burn devices. Harm reduction strategies and shifting consumer preferences are impacting the market.


• Europe: Europe has a diverse cigarette market, with variations in smoking prevalence and regulations across countries. Western European countries, such as Germany, France, and the United Kingdom, have experienced declining smoking rates due to health awareness campaigns and strict regulations. Eastern European countries, however, still have relatively high smoking rates. The European Union's Tobacco Products Directive (TPD) regulates the market by imposing standardized packaging, health warnings, and restrictions on additives.


• Asia-Pacific: Asia Pacific is a significant market for cigarettes, both in terms of consumption and production. China, the largest consumer of cigarettes globally, dominates the region. Other key markets include India, Indonesia, Japan, and South Korea. The market is influenced by factors such as cultural norms, affordability, and varying degrees of government regulations. Local and international tobacco companies, including China National Tobacco Corporation, Japan Tobacco International, and Philip Morris International, compete in this region.


• Rest of the World: Latin American countries, such as Brazil and Argentina, have implemented strict regulations and experienced declining smoking rates. Africa has mixed smoking patterns, with some countries experiencing high smoking prevalence. The Middle East has a significant tobacco market, with countries like Saudi Arabia, Iran, and Egypt being major consumers. Factors influencing the cigarette market in the Rest of the World include cultural norms, affordability, availability, and government regulations. The market dynamics vary across countries, with some experiencing growth in smoking rates while others are actively implementing tobacco control measures.