Cigarette Market Share

Global Cigarette Market Overview

Cigarette Market Size was valued at USD 818.90 billion in 2022. The cigarette market industry is projected to grow USD 1,176.72 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 3.59% during the forecast period (2023 - 2032). The cigarette market is a significant segment of the global tobacco industry, which encompasses the manufacturing, marketing, and distribution of tobacco products, primarily in the form of cigarettes. Cigarettes are widely consumed across the world and have been a prominent product for decades, although the market has been influenced by changing consumer preferences, health concerns, and evolving regulations. 

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

The Cigarette Market has traditionally been large and has experienced steady growth over the years. However, various factors have impacted its growth trajectory. The market size is influenced by factors such as population demographics, disposable income, cultural norms, and smoking prevalence rates in different regions. The cigarette market is highly competitive and dominated by several multinational companies. Major players in the market include British American Tobacco (BAT), Philip Morris International, Japan Tobacco International (JTI), Imperial Brands, and Altria Group. These companies have a strong global presence and engage in extensive marketing, product innovation, and brand management to maintain their market share.

Cigarettes are available in various types and flavors to cater to different consumer preferences. Common types of cigarettes include regular or traditional cigarettes, light cigarettes, menthol cigarettes, flavored cigarettes, and clove cigarettes. Each segment offers unique characteristics and flavor profiles to attract specific consumer groups. The cigarette market operates in an environment of increasing health concerns and stringent regulations. Scientific research has established a strong link between cigarette smoking and various health risks, including respiratory diseases, cardiovascular diseases, and different types of cancer. Governments and health organizations worldwide have implemented anti-smoking campaigns, public health initiatives, and regulatory measures to reduce smoking prevalence and mitigate the associated health risks. These regulations include restrictions on advertising, health warning labels, smoking bans in public places, and increased taxation on tobacco products.

While smoking rates have declined in some developed countries due to health awareness and regulatory interventions, the cigarette market is witnessing growth in emerging markets and developing countries. Factors such as population growth, changing lifestyles, urbanization, and increasing disposable incomes contribute to the expansion of the cigarette market in these regions. Companies are targeting these markets for growth opportunities and investing in marketing and distribution strategies tailored to local preferences and cultural nuances. Changing consumer preferences and evolving trends have influenced the cigarette market. As health consciousness grows, some consumers are shifting towards alternatives like e-cigarettes, heat-not-burn devices, and smokeless tobacco products. These alternatives offer potentially reduced harm compared to traditional cigarettes. Consequently, companies are diversifying their product portfolios to include these emerging categories.

The cigarette market is expected to face continued challenges due to increasing health awareness, regulatory measures, and shifting consumer preferences. However, the market is also witnessing the emergence of new product.

Cigarette Market Trends

• Social Acceptance and Cultural Factors

Smoking behavior can be influenced by cultural norms, social acceptance, and peer influence. In certain societies or social circles, smoking is seen as a status symbol, a way to socialize, or a part of daily rituals and traditions. These cultural practices and social norms contribute to the widespread use of cigarettes and maintain the demand for tobacco products. Peer influence, especially among younger individuals, can also drive cigarette consumption. Smoking is often perceived as a social activity, and individuals may start smoking to fit in or be influenced by their friends and peers who smoke.

Social norms around smoking can be influenced by various factors, including media representation, peer pressure, and community attitudes. For example, if smoking is portrayed positively in movies or television shows, it can contribute to the normalization of smoking behavior. Cultural practices can shape individuals' perceptions of smoking, making it more or less acceptable within specific cultural contexts. Cultural norms and traditions related to hospitality, socializing, or rites of passage can contribute to the social acceptance of smoking and its prevalence within certain communities.

A study published in the journal Tobacco Control in 2016 examined the impact of social norms on smoking behavior among adolescents. It found that adolescents who perceived smoking as socially acceptable or prevalent among their peers were more likely to engage in smoking. Another study published in the American Journal of Health Promotion in 2018 analyzed the influence of social norms on adult smoking behavior. The results indicated that perceived social norms favoring smoking were associated with increased smoking rates among adults.

According to the World Health Organization (WHO) Global Report on Trends in Prevalence of Tobacco Smoking 2000-2025, smoking rates tend to be higher in countries where tobacco use is more socially acceptable.

Cigarette Market Segment Insights:

Cigarette Flavor Insights

The Cigarette Market segmentation, based on the type, has been segmented into flavored, and non-flavored. The non-flavored segment accounted for a market share of 77.2% in 2022 in the Cigarette Market revenue. Non-flavored cigarettes, also known as regular or unflavored cigarettes, are traditional tobacco products without any added flavors. These cigarettes primarily offer the natural taste of tobacco, without any additional flavorings or aromas. Non-flavored cigarettes are the most common and widely consumed type of cigarettes globally. The market for non-flavored cigarettes has a long-established presence, and it remains the dominant segment in the tobacco industry. This category includes various types of cigarettes, such as full-flavored, light, ultra-light, and filtered cigarettes. Non-flavored cigarettes cater to smokers who prefer the authentic taste of tobacco and are not specifically seeking flavored alternatives. This is poised to positively impact the cigarette industry in the forecast period.

June 2023: Altria Group, Inc announced that it has completed the acquisition of NJOY Holdings, Inc.

June 2023: Imperial Brands has announced the acquisition of a range of nicotine pouches from TJP Labs.

February 2023: Imperial Brands announced the launch of the first all-new upgrade of its Pulze heated tobacco device.

Figure 2: Cigarette Market, by Type, 2022 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Cigarette Ingredients Insights

Based on ingredients, the Cigarette Market data has been bifurcated into nicotine, tar, arsenic, benzene, and cadmium, among others. The nicotine segment accounted for a market share of 66.7% in 2022 in the Cigarette Market revenue. Nicotine is a naturally occurring alkaloid found in tobacco leaves, and it is the primary addictive substance in cigarettes. When tobacco is burned and smoked, nicotine is released into the body through inhalation. It acts as a stimulant and affects the central nervous system, leading to various physiological and psychological effects. Nicotine stimulates the release of dopamine in the brain, producing feelings of pleasure and euphoria. This reinforces the desire to continue smoking and can contribute to the addictive nature of cigarettes. This has further broadened the growth opportunity for the cigarette industry.

Figure 2: Cigarette Market, by Ingredients, 2022 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Cigarette Form Insights

Based on form, the global cigarette industry has been segmented into slim, super slim, king size, and regular. The regular segment accounted for a market share of 43.4% in 2022 in the Cigarette Market revenue. Regular cigarettes, also known as standard or full-size cigarettes, are the conventional form of cigarettes available in the market. They are characterized by their average length and diameter. Regular cigarettes appeal to a wide range of smokers who prefer a balanced smoking experience. Regular cigarettes are often the benchmark against which other cigarette forms are compared. They typically contain a moderate amount of tar and nicotine and are available in various strengths and flavor options. Regular cigarettes cater to both male and female smokers and are widely accessible in terms of availability and affordability. This further drives the growth of the cigarette industry in the forecast period.

Figure 3: Cigarette Market, by Form, 2022 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Cigarette Price Insights

Based on price, the global cigarette industry has been segmented into premium, and economy. The economy segment accounted for a market share of 61.0% in 2022 in the Cigarette Market revenue. Economy cigarettes are priced at a lower range, targeting cost-conscious consumers. These cigarettes often offer more affordable options while compromising on certain attributes like branding, packaging, or perceived quality. Most of the middle-class people prefer the use of economy price cigarette since it is affordable. This drives the growth of the cigarette industry in the forecast period.

Figure 3: Cigarette Market, by Price, 2022 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Cigarette End User Insights

Based on end user, the global cigarette industry has been segmented into male and female. The male segment accounted for a market share of 68.2% in 2022 in the Cigarette Market revenue. Historically, smoking rates have been higher among males, although this trend has seen changes in recent years. Traditionally, smoking has been more prevalent among men in many societies, but smoking rates among women have been increasing in recent years. Some men may turn to smoking as a way to cope with stress, pressure, or emotional challenges. Smoking is sometimes perceived as a stress-relieving activity or a means of relaxation. Tobacco companies have historically targeted male consumers through marketing campaigns that associate smoking with masculinity, adventure, or other desirable traits. These targeted marketing efforts have influenced male smoking behavior. Smoking initiation often occurs during the teenage years or early adulthood. Peer pressure, experimentation, and the desire to fit in or rebel contribute to higher smoking rates in these age groups. This drives the growth of the cigarette industry in the forecast period.

Figure 3: Cigarette Market, by End User, 2022 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Cigarette Distribution Channel Insights

Based on distribution channel, the global cigarette industry has been segmented into supermarkets & hypermarkets, specialty stores, departmental stores, and online. The supermarkets & hypermarkets segment accounted for a market share of 39.4% in 2022 in the Cigarette Market revenue. Supermarkets and hypermarkets play a significant role in the distribution of cigarettes in the market. These large-scale retail stores offer a wide range of products, including cigarettes, to cater to the diverse needs of consumers. Supermarkets and hypermarkets benefit from high foot traffic and the ability to attract a large customer base. They often allocate dedicated sections or kiosks for tobacco products, ensuring their visibility and accessibility. Cigarette manufacturers and distributors collaborate with these retail giants to ensure that their products are well-stocked and prominently displayed. This distribution channel allows for convenience and easy availability of cigarettes to a broad customer base.

Figure 3: Cigarette Market, by Distribution Channel, 2022 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Cigarette Regional Market Insights

By Region, the study segments the market into North America, Europe, Asia-Pacific and the Rest of the World. Asia-Pacific is the largest region in the cigarette market with a market share of 40.63% in 2022 and is likely to register a CAGR of 4.23% during the projected period.

Figure 3: CIGARETTE MARKET SHARE BY REGION 2022 (%)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

The North America cigarette market is expected to expand at a robust rate over the projected period, according to Market Research Future. The North American cigarette market is characterized by a mature and declining industry. Smoking rates have been decreasing over the years due to increased awareness of health risks, stringent regulations, and anti-smoking initiatives. The United States and Canada have implemented strict regulations on cigarette packaging, advertising, and smoking in public places. Higher taxes and health warning labels are common practices. E-cigarettes and vaping products have also gained popularity as alternatives. The North American market is dominated by major tobacco companies such as Philip Morris International, British American Tobacco, and Japan Tobacco International.

Europe’s cigarette market accounts for the second largest market share as of 2022. The European cigarette market varies across countries, with some experiencing declining smoking rates, while others still have higher rates. Eastern European countries generally have a higher smoking prevalence compared to Western European nations. The European market has a mix of international tobacco companies and local brands. Companies like British American Tobacco, Imperial Brands, and Philip Morris International have a strong presence. Like in other regions, the European market is witnessing a decline in smoking rates, driven by health concerns, anti-smoking campaigns, and regulatory measures.

Asia-Pacific cigarette market accounts for the largest market share as of 2022. The Asia Pacific region represents a significant market for cigarettes, with a mix of mature markets and emerging economies. Smoking rates in some countries, particularly in Southeast Asia, remain high compared to other regions. Major multinational tobacco companies compete with local brands in the Asia Pacific market. The region has a diverse range of smoking prevalence, influenced by cultural factors, affordability, and government policies. Some countries are experiencing a decline in smoking rates, while others are witnessing an increase. Smokeless tobacco, such as chewing tobacco and betel quid, remains popular in some countries.

The Rest of the World region includes various countries with different smoking prevalence rates and market dynamics. This includes countries in Africa, Latin America, the Middle East, and Oceania. Regulations differ across countries, ranging from strict measures to more lenient approaches. Some countries have implemented smoking bans, health warning labels, and taxation policies to control smoking rates. 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.

Cigarette Key Players & Market Competitive Landscape

The cigarette market is characterized by the presence of many regional and local vendors. The market players are facing competition from various other market players. The market is increasing due to factors such as population growth, changing lifestyles, urbanization, and increasing disposable incomes. The market player contest is based on cost, product quality, reliability, and transportation service. The vendors must provide on-time delivery services, to survive and succeed in an intensely competitive market environment with major market players. Recent market statistics show that new product releases, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations are just some of the strategic steps market participants are doing to expand their global footprint, broaden their market outlook and focus on market growth.

There are numerous worldwide, regional, and local players in the market for cigarette. There is a lot of competition in the market, and everyone is trying to expand their part of it. While tier-1 and tier-2 corporation control over ~84% of the worldwide market share between them, tier-3 companies make up the rest of the pie. A number of factors, including market and economic growth, government laws, and technological progress, affect how quickly and how large market players can expand. As a result, businesses in the sector need to concentrate on increasing output to keep up with demand and bettering their offerings to grow in line with the expected market forecast.

Latest market report from Market Research Future portrays the leading players in the cigarette industry, which include British American Tobacco plc (BAT), Altria Group Inc., Japan Tobacco International (JTI), ITC Limited, Philip Morris International (PMI), Imperial Brands Plc, Reynolds American Inc., China National Tobacco Corporation (CNTC), Eastern Company SAE, and Korea Tobacco & Ginseng Corporation (KT&G). Most of these firms are investing in R&D resources into creating a variety of cigarettes. Despite the dominance of global corporations, a number of regional and local players with relatively minor market shares are present as well. In key markets like North America, Europe, Asia-Pacific, the Middle East & Africa, and South America, the global players who have established production facilities or sales offices have expanded their operations.

Key Companies in the Cigarette Market Include

• British American Tobacco plc (BAT)


• Altria Group Inc.


• Japan Tobacco International (JTI)


• ITC Limited


• Philip Morris International (PMI)


• Imperial Brands Plc


• Reynolds American Inc.


• China National Tobacco Corporation (CNTC)


• Eastern Company SAE


• Korea Tobacco & Ginseng Corporation (KT&G)

Cigarette Industry: Market Developments

January 2023: Philip Morris International Inc announced a collaboration with KT&G. The company is one of South Korea’s leading tobacco and nicotine manufacturer.

November 2022: British American Tabacco announced an investment in Charlotte’s Web Holdings, Inc. The company is in innovative hemp extract wellness products.

October 2022: Altria Group, Inc announced a partnership with JT Group (JT) for an expanded heated tobacco portfolio

October 2022: 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.

Cigarette Market Segmentation

Cigarette Type Outlook

• Flavored


• Clove


• Wintergreen


• Fruit


• Others


• Non-flavored

Cigarette Ingredients Outlook

• Nicotine


• Tar


• Arsenic


• Benzene


• Cadmium


• Others

Cigarette Price Outlook

• Premium


• Economy

Cigarette Form Outlook

• Slim


• Super slim


• King size


• Regular

Cigarette End User Outlook

• Male


• Female

Cigarette Distribution Channel Outlook

• Supermarkets & Hypermarkets


• Specialty Stores


• Departmental Stores


• Online

Cigarette Regional Outlook

• 
  North America
  
  
  
  • US
  
  
  • Canada
  
  
  • Mexico
  
  
  
  


• 
  Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• 
  Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia & New Zealand
  
  
  
  


• 
  Rest of Asia-Pacific
  
  
  
  • Rest of the World
  
  
  • South America
  
  
  • Middle East
  
  
  • Africa