According to a new report, the global tobacco market is expected to generate USD 262.8 billion by 2027, witnessing a CAGR of 6.7 per cent from 2021 to 2027, reports Tobacco Industry Today.

Increase in consumption of cigarettes, adoption of unique product promotion and surge in usage of dry smokeless tobacco drive the growth of the tobacco market, said the report “Tobacco Market by Type (Virginia, Burley, Nicotiana Rustica, Oriental, and Others), Product (Cigar, Cigarette, Kretek, Snuff, and Others), and Distribution Channel (Hypermarkets & Supermarkets, Convenience Stores, Specialty Stores, and Online Sales Channel): Global Opportunity Analysis and Industry Forecast 2021–2027,” published by Allied Market Research.
However, the increasing number of nicotine replacement theories and adverse effects on health hamper market growth. On the other hand, the increasing interest in flavoured and innovative smokeless tobacco products offer new opportunities in the coming years, the report said.
The demand for tobacco products has declined significantly as the risk of COVID-19 infection among tobacco consumers is found to be more than non-consumers, as these products affect lungs and coronavirus also targets lungs to impair breathing. Manufacturing of tobacco products has been hindered due to lockdown imposed by governments, disruption of supply chain, and lack of raw materials, according to the report.
Based on type, the burley segment accounted for the highest share of more than one-third of the global tobacco market in 2019 and is expected to maintain its leadership position during the forecast period.
Based on product, the cigarette segment accounted for the largest market share in 2019, holding more than one-third of the global tobacco market, and is estimated to maintain its lead position during the forecast period.
Based on region, Asia-Pacific, followed by Europe and North America, contributed to the highest share of nearly two-fifths of the global tobacco market in 2019, and is expected to continue its dominant share in terms of revenue by 2027, the report said.