The raw tobacco leaves market was valued at US$ 31,045.19 million in 2021 and is projected to reach US$ 34,436.28 million by 2028; it is expected to grow at a CAGR of 1.5% from 2021 to 2028.
Tobacco products are made by curing raw tobacco leaves. Tobacco leaves contain nicotine and a volatile alkaloid that stimulate brain function. Moreover, continuous innovations in tobacco products and government regulations in selling raw tobacco leaves are projected to create profitable opportunities for active vendors during the forecast period.
During the forecast period, Asia Pacific is likely to account for the largest share of the global raw tobacco leaves market. Acccording to Asia-Pacific Heart Network, the region has the highest smoking rates in the world, as 2.3 million deaths are recorded in the region due to tobacco consumption-related diseases per year, accounting for about half of the 5 million global tobacco related deaths each year. Further, improvements in retail infrastructure and intensive brand campaigns by prominent tobacco companies, such as Philip Morris International and British American Tobacco, in key markets such as China, Bangladesh, India, and the Philippines are likely to support the market expansion in this region.
The ongoing COVID-19 pandemic has drastically altered the status of the raw tobacco leaves market. The pandemic has had the most influence on the production, logistics, and tourism & travel industries. The outbreak forced the governments of numerous countries to impose lockdown to decrease the spread of the virus. Thus, several companies are undergoing downtime and some companies are working remotely, which is leading to low productivity and income. The COVID-19 pandemic has created a significant societal and economic disruption and resulted in closures of stores, factories, and offices. The crisis also put restrictions on manufacturing, distribution, and travel. All these factors adversely impacted businesses, operations, cash flows, and financial positions during the continuation of the pandemic. The raw tobacco leaves industry was significantly growing before the COVID-19 outbreak. However, it is experiencing an irregularity in recent times, as consumers are selective in their purchases. The condition has substantially disrupted the demand for tobaccos. In several countries, tobacco products are classified as nonessential items, which has lowered the demand for raw tobacco leaves and tobacco products across the globe. COVID-19 is a respiratory disease so creates breathing issues. Therefore, people are avoiding using tobacco products. Also, tobacco smokers are being advised to quit smoking to lower the risk of getting infected by the virus. Thus, the COVID-19 outbreak is expected to restrain the growth of the raw tobacco leaves market in the future.
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Raw Tobacco Leaves Market: Strategic Insights
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Raw Tobacco Leaves Market: Strategic Insights
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Market Insights
Increasing Consumption of Tobacco Products in Developing Regions
The demand for tobacco products is increasing rapidly in regions such as Asia Pacific and Middle East & Africa. The growth in demand in Asia Pacific is attributed to the rising population, elevating income levels of the consumers, and lenient government regulations. The market in emerging regions such as the Asia Pacific and Middle East & Africa is expected to witness substantial growth during the forecast period. Growth in retail infrastructure and widespread brand campaigns by leading tobacco-producing organizations, such as Philip Morris International and British American Tobacco, in primary markets including India, China, Bangladesh, and the Philippines are projected to fuel the market growth in the Asia Pacific region in the coming years. Efforts by multinational tobacco companies to surge and develop tobacco production in the emerging regions are expected to meet the increasing needs of their overseas markets with readily available and cheaper tobacco leaves.
Asia-Pacific is one of the significant producers and consumers of tobacco globally, led by countries such as India and China. Four of the largest tobacco companies across the world are Japan Tobacco Inc., China National Tobacco Corporation, ITC Limited, and PT Gudang Garam Tbk, and they are based in Asia Pacific. Moreover, China is the largest market in the region, with a substantial percentage of its population consuming tobacco products. With lax in regulations in countries, such as the ban on the consumption of tobacco products in public places in India, and the increasing availability of tobacco products in modern retail outlets in the region are actively fueling the growth of the raw tobacco leaves market in Asia Pacific.
Leaf Type Insights
Based on leaf type, the global raw tobacco leaves market is segmented into virginia, oriental, and others. The virginia segment is expected to hold the largest share of the market during the forecast period. Virginia, or flue-cured tobacco, is also known as 'bright tobacco' because of its golden-yellow to deep-orange color while curing. It is typically cured for a week in heated barns and has a light, vibrant flavor, and taste. It grows exceptionally well in rainy areas, such as Georgia (USA), southern Brazil, and Zimbabwe, and can be found in almost every cigarette blend. Virginia tobacco is the most widely consumed tobacco across the world. It is grown, harvested, cured, and processed in a variety of methods. It has a nicotine range from 1% to 4% and sugar ranges from 4% to 25%. Virginia tobacco contains a large amount of sugar and makes the cigarette smoke sweeter.
Application Insights
The raw tobacco leaves market, based on application, is segmented into smoking tobacco, moist and dry snuff, and others. The smoking tobacco segment is expected to hold the largest share of the market during the forecast period. Raw tobacco leaves are mainly used for smoking in products such as cigarettes, roll-your-own, cigars, water pipes, e-cigarettes, and vapes. Tobacco smoking is an act of inhaling the smoke produced by burning dry or cured tobacco leaves. Tobacco's biochemically active components, such as nicotine and TSNA, are released during combustion and can be absorbed through the lungs. Tobacco is the core component of smoking tobacco products. Virginia, burley, and oriental are three tobacco types that are widely used in making tobacco products. According to a 2016 Behavioral Risk Factor Surveillance System survey, 44.3% of current young adult e-cigarette users were never smokers before trying e-cigarettes. Furthermore, young adults between the ages of 18 and 24 year are increasingly utilizing e-cigarettes. According to a recent study, the percentage of young adults who use e-cigarettes every day or on some days increased from 2.4% in 2012–2013 to 5.2% in 2017 and then increased again to 7.6% in 2018.
Universal Corporation, Sopariwala Exports, Alliance One International Inc., Leaf Only,British American Tobacco p.l.c., Leafcon International, BBM Bommidala Group, Star Agritech International, JT Group, and U.S. Tobacco Cooperative Inc. are among well-established players operating in the global raw tobacco leaves market. These companies offer their products worldwide.
Report Spotlights
- Progressive industry trends in the global raw tobacco leaves market to help players develop effective long-term strategies
- Business growth strategies adopted by developed and developing markets
- Quantitative analysis of the global raw tobacco leaves market from 2019 to 2028
- Estimation of the demand for raw tobacco leaves across various industries
- Porter’s Five Forces analysis to illustrate the efficacy of vendors operating in the industry to predict the market growth
- Recent developments to understand the competitive market scenario and the demand for raw tobacco leaves
- Market trends and outlook coupled with factors driving and restraining the growth of the raw tobacco leaves market
- Decision-making process by understanding strategies that underpin commercial interest with regard to the global raw tobacco leaves market growth
- Raw tobacco leaves market size at various nodes of the market
- Detailed overview and segmentation of the global raw tobacco leaves market as well as its dynamics in the industry
- Raw tobacco leaves market size in various regions with promising growth opportunities
Raw Tobacco Leaves Market Regional Insights
The regional trends and factors influencing the Raw Tobacco Leaves Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Raw Tobacco Leaves Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.
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Raw Tobacco Leaves Market Report Scope
| Report Attribute | Details |
|---|---|
| Market size in 2021 | US$ 31.05 Billion |
| Market Size by 2028 | US$ 34.44 Billion |
| Global CAGR (2021 - 2028) | 1.5% |
| Historical Data | 2019-2020 |
| Forecast period | 2022-2028 |
| Segments Covered |
By Leaf Type
|
| Regions and Countries Covered | North America
|
| Market leaders and key company profiles |
Raw Tobacco Leaves Market Players Density: Understanding Its Impact on Business Dynamics
The Raw Tobacco Leaves Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.
Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.
Major Companies operating in the Raw Tobacco Leaves Market are:
- Universal Corporation
- Sopariwala Exports
- Alliance One International Inc.
- Leaf Only
- British American Tobacco p.l.c.
Disclaimer: The companies listed above are not ranked in any particular order.
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Raw Tobacco Leaves Market, by Leaf Type
- Virginia
- Oriental
- Others
Raw Tobacco Leaves Market, by Application
- Smoking Tobacco
- Moist and Dry Snuff
- Others
Company Profiles
- Universal Corporation
- Sopariwala Exports
- Alliance One International Inc.
- Leaf Only
- British American Tobacco p.l.c.
- Leafcon International
- BBM Bommidala Group
- Star Agritech International
- JT Group
- U.S. Tobacco Cooperative Inc.
- Historical Analysis (2 Years), Base Year, Forecast (7 Years) with CAGR
- PEST and SWOT Analysis
- Market Size Value / Volume - Global, Regional, Country
- Industry and Competitive Landscape
- Excel Dataset
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Leaf Type and Application
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
Argentina, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Russian Federation, Saudi Arabia, South Africa, United Arab Emirates, United Kingdom, United States
Frequently Asked Questions
The overall threat of rivalry in raw tobacco leaves market is high. Rivalry is a high threat to profit when there are more than two competitors of similar size. Herein, competitive rivalry is intense as the industry’s products are undifferentiated. This makes for intense rivalry because competitors are constantly seeking ways to reach a competitive advantage over one another to gain market share.
The major players operating in the global raw tobacco leaves market are Universal Corporation, Sopariwala Exports, Alliance One International Inc., Leaf Only, British American Tobacco p.l.c., Leafcon International, BBM Bommidala Group, Star Agritech International, JT Group, U.S. Tobacco Cooperative Inc. and many others.
In 2020, Asia-Pacific accounted for the largest share of more than 55% in the global raw tobacco leaves market. The Asia-Pacific region has some of the highest smoking rates in the world, with 2.3 million deaths from tobacco-related diseases per year, accounting for about half of the 5 million global tobacco deaths each year. Further, improvements in retail infrastructure and intensive brand campaigns by prominent tobacco companies such as Philip Morris International and British American Tobacco, in key markets such as China, Bangladesh, India, and the Philippines, are likely to support market expansion in this region.
Based on application, the smoking tobacco segment dominated the market in 2020 and is expected to maintain its dominance throughout the forecast period. Raw tobacco leaves are mainly used for smoking in products such as cigarettes, roll-your-own, cigars, water pipes, e-cigarettes, and vapes. Tobacco smoking is the act of inhaling the smoke produced by burning dry or cured tobacco leaves. Tobacco's biochemically active components, such as nicotine and TSNA, are released during combustion and can be absorbed through the lungs. Tobacco is the core component of smoking tobacco products.
The global raw tobacco leaves market growth is majorly influenced by determinants such as increasing consumption of tobacco products in developing countries, rising health awareness regarding the health concerns of tobacco, and strategic investments by the prominent market players.
The Virginia segment is expected to dominate the market during the forecast period. Virginia, or flue-cured tobacco, is also known as 'bright tobacco' because of the golden-yellow to deep-orange color while curing. It is typically cured for a week in heated barns and has a light, vibrant flavor, and taste. It grows exceptionally well in rainy areas, such as Georgia (USA), southern Brazil, and Zimbabwe, and can be found in almost every cigarette blend. Virginia tobacco is the most widely consumed tobacco in the world.
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