The accelerating demand for cigars and the growing popularity of alternative products such as e-cigarette are the key drivers that are surging the demand of the tobacco market in the coming years.

The significant factors boosting the demand of the tobacco market include the strong demand for cigars and smoking tobacco products among the young target customers. The fundamental shift in the consumer’s preference and the continuous product innovation of tobacco at the global level are further energizing the market growth in the coming years. Additionally, the emerging trend of machine-made clove cigarettes is an ideal example of the changing consumer’s preference towards more sophisticated products. According to the tobacco market analysis, the increasing adoption of modern lifestyle, rising disposable income, and early exposure to tobacco products is encouraging the consumers to opt for these products. The combination of these factors is increasing the tobacco market share in terms of revenue.

The growing popularity of alternative products such as e-cigarette and the easy availability of traditional nicotine replacement therapies such as gum, patches, and lozenges are two major factors that will hamper the growth of the market. Furthermore, the growing number of government initiatives to promote healthy lifestyle habits and the increasing number of mass media campaigns against tobacco usage are likely to have a negative impact on the tobacco market over the coming years. For example, Bhutan is the only country that has prohibited the cultivation, production, and marketing of tobacco-based products under the section of Tobacco Control Act of Bhutan 2010.

On the basis of type, the cigarettes segment exhibits substantial growth potential and is expected to gain traction over the forecast period. This is due to the accelerating adoption of smoking tobacco products among young target customers. The increasing hectic lifestyle is pushing the consumer’s preference towards stress releasing products such as tobacco. The strong demand for health-conscious products such as smokeless cigarettes and e-cigarettes to mitigate the chances of cancer and lung inflammation will further enhance the demand of the segment. The high disposable income of the target customers and the growing population size of certain economies will have a positive impact on the demand of the segment. On the other hand, the cigar segment is projected to experience a faster CAGR over the forecast period owing to the continuous innovation in the product. Various manufacturers are focusing on product innovation, such as the development of the mechanism cigar to meet the growing demand of the consumers. Furthermore, the rising purchasing power of the consumer and its cost-effective feature is further strengthening the growth of the cigar segment.

Based on the distribution channel, the convenience stores segment is predicted to witness considerable growth in the next six years. These stores provide a wide range of product offerings with convenient packaging. Moreover, the manufacturers are focusing on launching new products in the hypermarket/supermarket with attractive discount offers, which will further propel the demand of the segment.

On the basis of the region, the Asia-pacific region is anticipated to be the fastest growing region during the forecast period owing to the increasing per capita expenditure on tobacco-based products, especially in developing economies such as China, India, and Japan. The easy availability of the different types of cigarettes and the rising emphasis of global giants on enhancing their product portfolio and distribution channel in order to capture the changing demand of the consumers will further surge the demand of the market in this region.

The key players of the tobacco market include Scandinavian Tobacco Group, Hongyunhonghe Tobacco (Group) Co., Ltd., Imperial Brands PLC, Philip Morris International Inc., British American Tobacco p.l.c. (BAT), Altria Group, Inc., Japan Tobacco Inc., Altadis SA, and ITC Limited, among others.

The research report on the tobacco market provides an in-depth analysis of the market revenue based on type, distribution channel, and region for the forecast period from 2020 to 2027. The report highlights the major market drivers propelling the growth as well as challenges faced by the market participants. The research report also provides market size and forecast for the market. The report also analyses the competitive landscape, major players, and their strategies in 2019. The competitive landscape section of the report captures and highlights the recent developments in the market.