Cigarette Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2018-2023

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The global cigarette market was worth US$ 853 Billion in 2017. The market is further projected to reach a value of nearly US$ 1067 Billion by 2023, at a CAGR of nearly 4% during 2018-2023. Cigarettes represent one of the most popular tobacco products being consumed across the world. They are a small cigar made of a thin paper containing shredded or ground tobacco. Most of the cigarettes are produced with a reconstituted product of tobacco which include the recycled stems of tobacco. Earlier in the 9th Century, cigarettes were available in the form of reeds and smoking tubes. Later in the 1800s, Juan Nepomuceno Adorno developed cigarette making machines in Mexico. Gradually with time, cigarettes were introduced in a wide variety of shapes, sizes, colours, flavours and intensity as per the preferences of consumers. Currently, the demand for cigarettes is on a rise, particularly in developing regions such as Asia and Africa. This is due to increasing population and lax government regulations regarding the production of cigarettes.

Global Cigarette Market Drivers:

  • Nowadays, there are different types of cigarettes available in the market such as filter cigarettes, menthol cigarettes, clove cigarettes, etc., providing the cigarette consumers a variety of options to choose between the products.
  • Major raw materials required for the manufacturing of cigarette are tobacco leaves, cut tobacco, cigarette filter, tipping paper, cigarette paper, whiteboard, aluminium laminated paper and glue. There are large number of suppliers of these materials present in the market which is driving the production of cigarette.
  • Over the past few years, there has been an increase in the number of smokers across the globe. This is mainly the result of hectic and stressful lifestyles being led by the consumers which is currently catalysing the growth of the cigarette market.
  • In some of the developing regions, such as Asia Pacific, the disposable incomes of the consumers have been rising which creates several growth opportunities for the cigarette manufacturers to raise their product price and shift smokers onto the premium products.
  • Cigarette consumers in the rural areas of several developing regions like India, China, Pakistan, etc., traditionally prefer several tobacco products such as hukkah, beedi, etc. instead of cigarette. However, it has been observed that over the past few years, due to a rise in the awareness about the product, a large number of rural tobacco consuming population is shifting towards cigarette.


Global Cigarette Market Trends

Breakup by Type:

The cigarette market has been segmented on the basis of different types of cigarettes available for the consumers to choose from such as light, medium and hard. Amongst these, light cigarettes represent the largest segment as they are safer and healthier to consume.

Breakup by Distribution Channel:

Currently, there are numerous means from which the consumers can obtain the desired cigarettes including Tobacco Shops, Supermarket and Hypermarkets, Convenience Stores and Online Stores. Tobacco shops are the most popular distribution channels as they offer a wide variety of specialised tobacco products ranging from premium cigars and cigarettes to ashtrays and humidification devices.

Regional Insights:

On a geographical front, Asia Pacific, excluding Australia, represents the largest market for cigarettes across the globe followed by Eastern Europe, Western Europe, Middle East and Africa, North America, Latin America and Australia. The growth in the Asia Pacific region can be highly attributed to increasing population coupled with elevating disposable incomes.

Competitive Landscape:

The global cigarette market is highly concentrated in nature with the presence of few manufacturers who have been competing in terms of prices and quality. Some of the key players operating in the market include China National Tobacco Corporation, Phillip Morris International, British America Tobacco, Japan Tobacco International and Imperial Tobacco Group.

This report provides a deep insight into the global cigarette industry covering all its essential aspects. This ranges from macro overview of the market to micro details of the industry performance, recent trends, key market drivers and challenges, SWOT analysis, Porter’s five forces analysis, value chain analysis, etc. The report also provides a comprehensive analysis for setting up a cigarette manufacturing plant. The study analyses the processing and manufacturing requirements, project cost, project funding, project economics, expected returns on investment, profit margins, etc. This report is a must-read for entrepreneurs, investors, researchers, consultants, business strategists, and all those who have any kind of stake or are planning to foray into the cigarette industry in any manner.

Key Questions Answered in This Report:

  • How has the global cigarette market performed so far and how will it perform in the coming years?
  • What are the key regional markets in the global cigarette industry?
  • What are the key product types in the global cigarette industry?
  • What are the major distribution channels in the global cigarette industry?
  • What are the price trends of cigarette?
  • What are the various stages in the value chain of the global cigarette industry?
  • What are the key driving factors and challenges in the global cigarette industry?
  • What is the structure of the global cigarette industry and who are the key players?
  • What is the degree of competition in the global cigarette industry?
  • What are the profit margins in the global cigarette industry?
  • What are the key requirements for setting up a cigarette manufacturing plant?
  • How are cigarettes manufactured?
  • What are the various unit operations involved in a cigarette manufacturing plant?
  • What is the total size of land required for setting up a cigarette manufacturing plant?
  • What are the machinery requirements for setting up a cigarette manufacturing plant?
  • What are the raw material requirements for setting up a cigarette manufacturing plant?
  • What are the packaging requirements for cigarette?
  • What are the transportation requirements for cigarette?
  • What are the utility requirements for setting up a cigarette manufacturing plant?
  • What are the manpower requirements for setting up a cigarette manufacturing plant?
  • What are the infrastructure costs for setting up a cigarette manufacturing plant?
  • What are the capital costs for setting up a cigarette manufacturing plant?
  • What are the operating costs for setting up a cigarette manufacturing plant?
  • What will be the income and expenditures for a cigarette manufacturing plant?
  • What is the time required to break-even?

1    Preface
2    Scope and Methodology

    2.1    Objectives of the Study
    2.2    Stakeholders
    2.3    Data Sources
        2.3.1    Primary Sources
        2.3.2    Secondary Sources
    2.4    Market Estimation
        2.4.1    Bottom-Up Approach
        2.4.2    Top-Down Approach
    2.5    Forecasting Methodology
3    Executive Summary
4    Introduction

    4.1    Overview
    4.2    Key Industry Trends
5    Global Tobacco Industry
    5.1    Market Overview
    5.2    Market Performance
    5.3    Markey Breakup by Region
    5.4    Market Breakup by Product Type
6    Global Cigarette Industry
    6.1    Market Overview
    6.2    Market Performance
        6.2.1    Volume Trend
        6.2.2    Value Trend
    6.3    Price Analysis
        6.3.1 Price Indicators
        6.3.2 Price Structure
        6.3.3 Price Trends
    6.4    Market Breakup by Type
    6.5    Market Breakup by Distribution Channel
    6.6    Market Breakup by Region
    6.7    Market Forecast 
    6.8    SWOT Analysis
        6.8.1    Strengths
        6.8.2    Weaknesses
        6.8.3    Opportunities
        6.8.4    Threats
    6.9    Value Chain Analysis
        6.9.1    Raw Material Procurement
        6.9.2    Manufacturing
        6.9.3    Marketing
        6.9.4    Distribution
        6.9.5    Exports
        6.9.6    End-Use
    6.10    Porter’s Five Forces Analysis
         6.10.1    Overview
         6.10.2    Bargaining Power of Buyers
         6.10.3    Bargaining Power of Suppliers
         6.10.4    Degree of Competition
         6.10.5    Threat of New Entrants
         6.10.6    Threat of Substitutes
    6.11    Key Market Drivers and Success Factors
7    Market Breakup by Type
    7.1    Light
    7.2    Medium
    7.3    Others
8    Market Breakup by Distribution Channel
    8.1    Tobacco Shops
    8.2    Supermarket and Hypermarkets 
    8.3    Convenience Stores
    8.4    Online Stores 
    8.5    Others 
9    Market Breakup by Region
    9.1    Asia Pacific (Excluding Australia)
    9.2    Eastern Europe
    9.3    Western Europe
    9.4    Middle East and Africa
    9.5    North America
    9.6    Latin America
    9.7    Australia
10    Competitive Landscape
   
10.1    Market Structure
    10.2    Key Players
11    Cigarette Manufacturing Process
    11.1    Product Overview
    11.2    Detailed Process Flow
    11.3    Various Types of Unit Operations Involved
    11.4    Mass Balance and Raw Material Requirements
12    Project Details, Requirements and Costs Involved
    12.1    Land Requirements and Expenditures
    12.2    Construction Requirements and Expenditures
    12.3    Plant Layout
    12.4    Plant Machinery
    12.5    Raw Material Requirements and Expenditures
    12.6    Raw Material and Final Product Pictures
    12.7    Packaging Requirements and Expenditures
    12.8    Transportation Requirements and Expenditures
    12.9    Utility Requirements and Expenditures
    12.10    Manpower Requirements and Expenditures
    12.11    Other Capital Investments
13    Loans and Financial Assistance
14    Project Economics
    14.1    Capital Cost of the Project
    14.2    Techno-Economic Parameters
    14.3    Product Pricing and Margins Across Various Levels of the Supply Chain
    14.4    Taxation and Depreciation
    14.5    Income Projections
    14.6    Expenditure Projections
    14.7    Financial Analysis
    14.8    Profit Analysis
15    Key Player Profiles
    15.1    China National Tobacco Corporation
    15.2    Phillip Morris International
    15.3    British America Tobacco
    15.4    Japan Tobacco International
    15.5    Imperial Tobacco Group

 

List of Figures

Figure 1: Global: Tobacco Industry Overview
Figure 2: Global: Tobacco Market: Production Volume Trends (in ‘000 Tons), 2010 – 2017
Figure 3: Global: Tobacco Market: Breakup by Region (in %), 2017
Figure 4: Global: Tobacco Market: Breakup by Product Type (in %), 2017
Figure 5: Global: Cigarette Industry Overview
Figure 6: Global: Cigarette Market: Sales Volume Trends (in Million Sticks), 2010 - 2017
Figure 7: Global: Cigarette Market: Sales Value Trends (in Billion US$), 2010 - 2017
Figure 8: Global: Cigarette Market: Price Trends (in US$/Stick), 2010 - 2017
Figure 9: Global: Cigarette Market Forecast: Sales Volume Trends (in Million Sticks), 2018 - 2023
Figure 10: Global: Cigarette Market Forecast: Sales Value Trends (in Billion US$), 2018 – 2023
Figure 11: Global: Cigarette Industry: SWOT Analysis
Figure 12: Global: Cigarette Industry: Value Chain Analysis
Figure 13: Global: Cigarette Industry: Porter’s Five Forces Analysis
Figure 14: Asia Pacific (Excluding Australia): Cigarette Market (in Billion US$), 2010, 2017 & 2023
Figure 15: Eastern Europe: Cigarette Market (in Billion US$), 2010, 2017 & 2023
Figure 16: Western Europe: Cigarette Market (in Billion US$), 2010, 2017 & 2023
Figure 17: Middle East and Africa: Cigarette Market (in Billion US$), 2010, 2017 & 2023
Figure 18: North America: Cigarette Market (in Billion US$), 2010, 2017 & 2023
Figure 19: Latin America: Cigarette Market (in Billion US$), 2010, 2017 & 2023
Figure 20: Australia: Cigarette Market (in Billion US$),2010, 2017 & 2023
Figure 21: Global: Cigarette Market: Breakup by Type (in %), 2017
Figure 22: Global: Cigarette Market: Breakup by Distribution Channel (in %), 2017
Figure 23: Global: Cigarette Market: Breakup by Region (in %), 2017
Figure 24: Cigarette Manufacturing Plant: Detailed Process Flow
Figure 25: Cigarette Manufacturing Process: Conversion Rate of Products
Figure 26: Cigarette Manufacturing Plant: Proposed Plant Layout
Figure 27: Cigarette Manufacturing Plant: Breakup of Capital Costs (in %)
Figure 28: Cigarette Industry: Profit Margins at Various Levels of the Supply Chain
Figure 29: Cigarette Production: Manufacturing Cost Breakup (in %)

 

List of Tables

Table 1: Global: Tobacco Market: Key Industry Highlights, 2017 and 2023
Table 2: Global: Tobacco Market Forecast: Breakup by Region, 2018-2023
Table 3: Global: Tobacco Market Forecast: Breakup by Product Type, 2018-2023
Table 4: Global: Cigarette Market: Key Industry Highlights, 2017 and 2023
Table 5: Global: Cigarette Market Forecast: Breakup by Type (in Million US$), 2018-2023 
Table 6: Global: Cigarette Market Forecast: Breakup by Distribution Channel (in Million US$), 2018-2023 
Table 7: Global: Cigarette Market Forecast: Breakup by Region (in Million US$), 2018-2023  
Table 8: Cigarette Manufacturing Plant: Costs Related to Land and Site Development (in US$)
Table 9: Cigarette Manufacturing Plant: Costs Related to Civil Works (in US$)
Table 10: Cigarette Manufacturing Plant: Costs Related to Machinery Unit (in US$)
Table 11: Cigarette Manufacturing Plant: Raw Material Requirements
Table 12: Cigarette Manufacturing Plant: Costs Related to Salaries and Wages (in US$)
Table 13: Cigarette Manufacturing Plant: Costs Related to Other Capital Investments (in US$)
Table 14: Details of Financial Assistance Offered by Financial Institutions
Table 15: Cigarette Manufacturing Plant: Capital Costs (in US$)
Table 16: Cigarette Manufacturing Plant: Techno-Economic Parameters
Table 17: Cigarette Manufacturing Plant: Taxation and Depreciation
Table 18: Cigarette Manufacturing Plant: Income Projections (in US$)
Table 19: Cigarette Manufacturing Plant: Expenditure Projections (in US$)
Table 20: Cigarette Manufacturing Plant: Cash Flow Analysis Without Considering the Income Tax Liability
Table 21: Cigarette Manufacturing Plant: Cash Flow Analysis on Considering the Income Tax Liability
Table 22: Cigarette Manufacturing Plant: Profit and Loss Account


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