Amid the COVID-19 crisis, the global market for tobacco estimated at USD 845.1 billion in 2020, is projected to reach a revised size of USD 1.1 trillion by 2027, according to a report by Research and Markets.

This means a compound annual growth rate (CAGR) of 3.2 per cent over the analysis period 2020-2027. Cigarettes are projected to record a 3.1 per cent CAGR and reach USD 734.4 billion by the end of the analysis period. After an early analysis of the business implications of the pandemic and its induced economic crisis, growth in the smokeless segment is readjusted to a revised 3.1% per cent CAGR for the next 7-year period.
The Tobacco market in China is forecast to reach a projected market size of USD 203.5 billion by the year 2027 trailing a CAGR of 5 per cent over the analysis period 2020 to 2027. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 2 and 2.5 per cent respectively. Within Europe, Germany is forecast to grow at approximately 2.4 per cent CAGR.
In the global cigars and cigarillos segment, the US, Canada, Japan, China and Europe will drive the 3.1 per cent CAGR estimated for this segment. These regional markets accounting for a combined market size of USD 57.2 billion in the year 2020 will reach a projected size of USD 70.8 billion by the close of the analysis period. China will remain among the fastest growing in this cluster of regional markets. Led by countries such as Australia, India, and South Korea, the market in Asia-Pacific is forecast to reach USD 135.1 billion by the year 2027, while Latin America will expand at a 3.5 per cent CAGR through the analysis period.