The Global Market for Cigarettes is Projected to Reach US$922.7 Billion by the Year 2020

Anti-Smoking Legislations and High Taxes Mar Cigarette Market Landscape, According to a New Report by Global Industry Analysts, Inc.

GIA announces the release of a comprehensive global report on Cigarettes. The global market for Cigarettes is projected to reach US$922.7 billion by the year 2020. Sales of cigarettes continue to witness tremendous pressure from increasing taxes, growing health concerns, and anti-smoking campaigns and legislations.

Cigarettes are small cylinder-shaped products of ground or shredded tobacco wrapped in non-nicotine containing substances such as paper and are meant to be smoked. Cigarettes represent the largest segment in the global tobacco products market, with over 5.0 trillion units consumed each year. The global market for cigarettes is mature, with sales declining in most markets worldwide. Anti-smoking regulations, restrictions on marketing and promotional activities, and rising ad valorem and volumetric taxes are some of the challenges facing the market. Governments worldwide continue to embark on various pricing and non-pricing mechanisms to disincentivize cigarette smoking, which will have significant impact on the market going forwards.

Price increase represents a perpetual phenomenon in the cigarette industry worldwide. The intended outcome of this strategy is to reduce smoking prevalence. The imposition of higher excise taxes and weaker macroeconomic environment, however, are driving paradoxical trends in the global cigarettes market. Many consumers worldwide traded down to cheaper brands in recent years against the backdrop of fiscal uncertainty, higher unemployment, and higher product prices. On the other hand, growing prices have diminished the perceived value of premium brands, motivating many to trade up to premium cigarettes. Additionally, higher taxes on cigarettes failed to produce the desired outcome as consumers in some markets began shifting to low cost tobacco products in response. Sales of pipe tobacco in the Middle East and Africa, and cigarillos in Europe and the United States have become more popular as a result.

As stated by the new market research report on Cigarettes, Asia-Pacific, led by China, represents the single largest market worldwide. The region is also forecast to emerge as the fastest growing market with a value CAGR of 3.4% over the analysis period. Growing population, rising per capita income and less stringent regulatory environment are the key factors driving consumption of cigarettes in the region.

Key players covered in the report include British American Tobacco, China National Tobacco Corporation, Imperial Tobacco Group PLC, Japan Tobacco Group, and Philip Morris International.

The research report titled “Cigarettes: A Global Strategic Business Report” announced by Global Industry Analysts Inc., provides a comprehensive review of market trends, issues, drivers, company profiles, mergers, acquisitions and other strategic industry activities. The report provides market estimates and projections in value (US$) and volume (sticks) for global and regional markets including the US, Canada, Japan, Europe (France, Germany, Italy, UK, Spain, Russia, Greece, Poland, Turkey, Ukraine, and Rest of Europe), Asia-Pacific (Australia, China, India, Indonesia, Malaysia, Philippines, Singapore, South Korea, Taiwan, Thailand, and Rest of Asia-Pacific), Latin America (Argentina, Brazil, Chile, Colombia, Ecuador, Mexico, Peru, and Venezuela), and Rest of World.