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CN 0118 | Industry Report

Tobacco Growing in China Industry Data and Analysis

MW
Millie Walker
Analyst Beijing, China May 2025

Tobacco is grown on less than 1% of the world's agricultural land and in a wide variety of soils and climates. Since the 1960s, the bulk of production has moved from the Americas to Africa and Asia. Land devoted to tobacco growing has been halved in the United States, Canada and Mexico, but has almost doubled in China, Malawi and Tanzania.Due to the issuance of China's Tobacco Control Program in late 2012 in response to the World Health Organization Framework Convention on Tobacco Control (WHO FCTC), tobacco leaf production capability has been declining since 2013. In 2013, the planting area of tobacco leaves in China peaked at 1,551.7 thousand hectares, and reduced to 1,012.9 thousand hectares in 2021, at an average rate of 5.2%. In 2022 and 2023, due to the promotion of scale planting, the planting area of tobacco leaves in China has increased, to 1,043.6 thousand hectares and 1,084.1 thousand hectares, respectively.The output of tobacco leaf in China is set to total 2.5 million tons in 2025, decreasing at an average rate of 2.8% in the past five years to 2025, with flue-cured tobacco leaves accounting for 95.5% of the total. Revenue for the Tobacco Growing industry in China is expected to increase by an annualized 4.6% over the five years through 2025, to $11.4 billion. This includes a 5.0% increase in the current year.Industry revenue is projected to grow steadily over the next five years, mainly due to the large smoking population in China and the rising purchasing price of tobacco leaves. Demand from downstream domestic tobacco leaf markets and quality improvements in tobacco leaf production will be the main drivers of industry development. However, the growth rate is forecast to slow, mainly due to the improving health awareness of Chinese residents. Over the next five years, industry revenue is projected to grow by an annualized 4.0%, to $13.9 billion in 2030.

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What's included in this industry analysis

IBISWorld's research coverage on the Tobacco Growing industry in China includes market sizing, forecasting, data and analysis from 2015-2030. The most recent publication was released May 2025.

About this industry

What's this industry report about?

The Tobacco Growing industry in China operates under the industry code 0118. The Tobacco Growing industry in China is engaged in tobacco leaf production, including purchasing agricultural inputs like plant seeds, plant bulbs, fertilizers, agricultural chemicals, pesticides and growing facilities. It is also engaged in the primary processing of tobacco leaves, like baking, drying and basking. This industry does not engage in the redrying of tobacco leaves. Related terms covered in the Tobacco Growing industry in China include flue-cured tobacco, burley tobacco leaf and virginia tobacco.

What's included in this industry?

Products and services covered in Tobacco Growing industry in China include Flue-cured tobacco leaves and Sun-cured and other tobacco leaves.

What companies are included in this industry?

The Tobacco Growing industry in China is highly fragmented with no companies holding a market share greater than 5%.

Performance

What's included in the Performance chapter?

The Performance chapter covers detailed analysis, datasets, detailed current performance, sources of volatility and an outlook with forecasts for the Tobacco Growing industry in China.

Questions answered in this chapter include what's driving current industry performance, what influences industry volatility, how do successful businesses overcome volatility, what's driving the industry outlook. This analysis is supported with data and statistics on industry revenues, costs, profits, businesses and employees.

Products & Markets

What's included in the Products and Markets chapter?

The Products and Markets chapter covers detailed product and service segmentation, analysis of major markets and international trade data for the for the Tobacco Growing industry in China.

Questions answered in this chapter include how are the industry's products and services performing, what are innovations in industry products and services, what products or services do successful businesses offer and what's influencing demand from the industry's markets. This includes data and statistics on industry revenues by product and service segmentation and major markets.

Geographic Breakdown

What's included in the Geographic Breakdown chapter?

The Geographic Breakdown chapter covers detailed analysis and datasets on regional performance of the Tobacco Growing industry in China.

Questions answered in this chapter include where are industry businesses located and how do businesses use location to their advantage. This includes data and statistics on industry revenues by location.

Competitive Forces

What's included in the Competitive Forces chapter?

The Competitive Forces chapter covers the concentration, barriers to entry and supplier and buyer profiles in the Tobacco Growing industry in China. This includes data and statistics on industry market share concentration, barriers to entry, substitute products and buyer & supplier power.

Questions answered in this chapter include what impacts the industry's market share concentration, how do successful businesses handle concentration, what challenges do potential industry entrants face, how can potential entrants overcome barriers to entry, what are substitutes for industry services, how do successful businesses compete with substitutes and what power do buyers and suppliers have over the industry and how do successful businesses manage buyer & supplier power.

Companies

What's included in the Companies chapter?

The Companies chapter covers Key Takeaways, Market Share and Companies in the Tobacco Growing industry in China. This includes data and analysis on companies operating in the industry that hold a market share greater than 5%.

Questions answered in this chapter include what companies have a meaningful market share and how each company is performing.

External Environment

What's included in the External Environment chapter?

The External Environment chapter covers Key Takeaways, External Drivers, Regulation & Policy and Assistance in the Tobacco Growing industry in China. This includes data and statistics on factors impacting industry revenue such as economic indicators, regulation, policy and assistance programs.

Questions answered in this chapter include what demographic and macroeconomic factors impact the industry, what regulations impact the industry, what assistance is available to this industry.

Financial Benchmarks

What's included in the Financial Benchmarks chapter?

The Financial Benchmarks chapter covers Key Takeaways, Cost Structure, Financial Ratios, Valuation Multiples and Key Ratios in the Tobacco Growing industry in China. This includes financial data and statistics on industry performance including key cost inputs, profitability, key financial ratios and enterprise value multiples.

Questions answered in this chapter include what trends impact industry costs and how financial ratios have changed overtime.

Industry Data

What's included in the Industry Data chapter?

The Industry Data chapter includes 10 years of historical data with 5 years of forecast data covering statistics like revenue, industry value add, establishments, enterprises, employment and wages in the Tobacco Growing industry in China.

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Frequently Asked Questions

What is the market size of the Tobacco Growing industry in China in 2026?

The market size of the Tobacco Growing industry in China is $11.4bn in 2026.

How many businesses are there in the Tobacco Growing industry in China in 2025?

There are 600k businesses in the Tobacco Growing industry in China, which has declined at a CAGR of 4.5 % between 2020 and 2025.

How may import tariffs affect the Tobacco Growing industry in China?

The Tobacco Growing industry in China is likely to be impacted by import tariffs with imports accounting for a moderate share of industry revenue.

How may export tariffs affect the Tobacco Growing industry in China?

The Tobacco Growing industry in China is likely to be impacted by export tariffs with exports accounting for a moderate share of industry revenue.

Has the Tobacco Growing industry in China grown or declined over the past 5 years?

The market size of the Tobacco Growing industry in China has been growing at a CAGR of 4.6 % between 2020 and 2025.

What is the forecast growth of the Tobacco Growing industry in China over the next 5 years?

Over the next five years, the Tobacco Growing industry in China is expected to grow.

What does the Tobacco Growing industry in China include?

Flue-cured tobacco leaves and Sun-cured and other tobacco leaves are part of the Tobacco Growing industry in China.

How competitive is the Tobacco Growing industry in China?

The level of competition is moderate and increasing in the Tobacco Growing industry in China.

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