Tobacco

Overview

The global tobacco market size was valued at USD 849.09 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 3.1% from 2020 to 2027. The market is gaining momentum and witnessing a high demand owing to rising consumer disposable income, increasing number of product launches, and availability of superior-quality products. Increasing consumption of tobacco products among females and students is also fueling market growth. According to the American Lung Association, the use of tobacco products has increased from 28.2 percent to 31.2 percent among high school students from 2002 to 2019 in U.S.


According to the World Health Organization’s global report on trend in prevalence of tobacco use published in 2019, the number of male tobacco users in the world was increasing each year during 2000 to 2018. In 2018, the number of users across the globe was found to be 1093 billion.


Marketing and advertisement have also played a crucial role in enhancing the adoption of tobacco products. In 2017, tobacco companies spent USD 9.36 billion on marketing its finished products in U.S. Even though product promotions are restricted to television and radio, some companies are expected to utilize the point-of-sale locations, including convenience stores, grocery stores, gas stations, and pharmacies, for marketing their finished goods. It is estimated that key tobacco marketing firms deploy 96% of their overall marketing budget for point-of-sale marketing.


Packaging of these tobacco products play a vital role in appealing to adolescents and young adults. The industry still has wide leeway in promoting their brands directly on the tobacco product packaging. The industry participants utilize some of the critical marketing tools, including eye-catching designs, attractive colors, and engaging characters during labelling of tobacco products. These initiatives are expected to attract new customers, such as the youth population.