Tobacco Products Market is expected to reach US$ 907,665.43 Million by 2028

Rising Consumption of Tobacco Products in Developing Economies

According to our latest market study titled "Tobacco Products Market Forecast to 2028 – COVID-19 Impact and Global Analysis – by Product Type (Cigarettes, Cigars & Cigarillos, Roll-Your-Own, and Others) and Distribution Channel (Supermarkets & Hypermarkets, Convenience Stores, Online Retail, and Others)," the tobacco products market is projected to reach US$ 907,665.43 million by 2028 from US$ 782,022.19 million in 2021. It is expected to grow at a CAGR of 2.2% from 2021 to 2028. 

Tobacco is used in the production of chewing tobacco, smoking tobacco, cigarettes, and cigar. The tobacco plant can be easily grown in all weather and environmental conditions, such as moist or warm. Tobacco is one of the most common addictive substances in the world. Although tobacco products are harmful, they are used widely across the world. The consumption of tobacco and related products increased worldwide during the time of economic slowdown owing to the fall in the stock markets and foreclosures, along with the stress related to layoffs that impelled many people to seek refuge through smoking.

The demand for tobacco products is shifting significantly from developed countries to developing countries in Asia Pacific and the Middle East & Africa. According to the World Health Organization (WHO), as of 2020, more than 80% of the world's total tobacco smokers (1.3 billion) live in low and middle-income nations. The rising consumption of tobacco in developing countries is attributed to increasing per capita income, less stringent government regulations, and the growing influence of western culture.

Key players operating in the tobacco products market include Altria Group, Inc.; British American Tobacco plc; Swedish Match AB; ITC Ltd.; Japan Tobacco International; Imperial Brands; Philip Morris Products S.A.; Vector Group LTD.; Pyxus International, Inc.; and China Tobacco International (HK) Company Limited.

Impact of COVID-19 Pandemic on Tobacco Products Market

The COVID-19 pandemic brought unprecedented challenges for many sectors. Lockdowns, border restrictions, travel bans, manufacturing discontinuation, and other safety measures taken under the guidelines by the WHO and national health authorities hindered the progress of the manufacturing companies sector. Moreover, supply chains were completely disrupted due to nationwide lockdown and border restrictions. The COVID-19 pandemic had a short-term impact on the tobacco industry. In countries such as South Africa and India, tobacco products were banned by the governments during the lockdown as tobacco is a non-essential commodity. There is mounting evidence that smoking is linked to adverse outcomes and increased severity of COVID-19. Compared to non-smokers, smokers have a greater chance of developing the COVID-19 infection. Furthermore, many companies halted their production as employees started testing positive for the virus. For instance, production was halted at Philip Morris USA's manufacturing facility at Richmond after two employees were diagnosed with COVID-19 in early 2020. factors limited the growth of the tobacco products market to some extent during the early phases of the pandemic.

Tobacco Products Market Breakdown – by Region

The report segments the tobacco products market as follows:

Based on product type, the tobacco products market is segmented into cigarettes, cigars & cigarillos, roll-your-own, and others. In terms of distribution channel, the tobacco products market is segmented into supermarkets & hypermarkets, convenience stores, online retail, and others. Based on geography, the tobacco products market is primarily segmented into North America, Europe, Asia-Pacific (APAC), the Middle East & Africa (MEA), and South & Central America (SAM).

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