Cigarette Manufacturing in China - Market Research Report (2014-2029)
Beijing, China
Last Updated: May 2024
1620Revenue
$220.9bn
Past 5-Year Growth
Profit
$XX.Xbn
Employees
186k
Businesses
19
Wages
$X.Xbn
Cigarette Manufacturing in China industry analysis
Revenue for the Cigarette Manufacturing industry in China has grown at an annualized 3.6% over the five years through 2023. Despite the recent slowdown in China's economy, a strict tobacco control policy is expected to drive a 1.0% increase in cigarette production output and a 2.6% growth in industry revenue in the current year, to total $220.9 billion. However, due to stable overall demand for cigarettes, the weaker global economy at the start of the period had very little effect on the industry.The State Council implements national monopoly on tobacco. Industry operators produce cigarette products according to the total output plan specified by the State Tobacco Monopoly Administration (STMA) and the product grade and type required by their provincial-level tobacco companies, and then sell the products to the local tobacco companies at the price specified by STMA. The cross regional cigarette allocation activities are also managed by STMA. Industry enterprise numbers stay unchanged at 19 in the past five years to 2023, all under the management of China National Tobacco Corporation on behalf of STMA. Merger and acquisition activities between cigarette producers are all organized by the Government. Industry establishment numbers are expected to decrease at an average of 0.8% in the past five years, mainly due to the shutdown and exit of outdated production capacity.Industry firms employ 186,092 workers across the industry, with a total payroll of $9.0 billion. Exports are expected to total $228.3 million in 2023, accounting for 0.1% of industry revenue. Imports are expected to amount to $428.2 million and account for 0.2% of domestic demand for the year.Over the five years through 2028, industry revenue will increase at an annualized rate of 2.5%, to $250.1 billion. High domestic smoking levels are projected to drive industry growth over the period. However, stricter government controls on cigarette smoking in public places and buildings and increasing health awareness of consumers will result in slower demand growth when compared with the past five years.
Trends and Insights
- The Chinese Government implements national monopoly on tobacco. STMA implements a unified leadership and monopoly management for the tobacco industry in China, and formulates the annual production plan for cigarette products.
- Cigarettes represent over 99% of industry revenue. Cigarettes are the industry's main segment, which has continued to increase in value in recent years, due to a rise in the average price of products sold and market demand.
- Industry production is controlled by the Government. The production and sales of cigarettes for provinces, like the production volume, cigarette grade, variety, and price, are all under the management and control of STMA.
- The industry is governed by the State Council. China has implemented national monopoly on tobacco. STMA formulates the annual production plan and transfer price of finished cigarette products.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 3.6 % over the past five years, to reach an estimated $220.9bn in 2024.
Trends and Insights
Industry operations are controlled by the Government
- The State Council formulates the annual total production plan for cigarettes and cigars in provinces, autonomous regions, and municipalities.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Decreasing smoking population in China will restrain industry growth
- According to the Healthy China Action (2019-2030) released by the State Council, the smoking rate among people aged 15 and above will decrease to 20% by 2030, from 27.7% in 2015.
Biggest companies in the Cigarette Manufacturing in China
| Company | Market Share (%)
2023 | Revenue ($short_0)
2023 |
|---|
There are no companies that hold a large enough market share in the Cigarette Manufacturing in China industry for IBISWorld to include in this product.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Cigarettes, Cigars and Others. Cigarettes is the largest segment of the Cigarette Manufacturing in China.
Trends and Insights
Cigarettes represent about 99% of industry revenue
- Cigarette is a tobacco product made by rolling tobacco shreds into strips using cigarette paper.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- There are no industries to display.
Complementors
- Tobacco Growing in China
- Tobacco Leaf Processing in China
International industries
- Global Cigarette & Tobacco Manufacturing
- Cigarette & Tobacco Manufacturing in the US
- Cigarette & Tobacco Manufacturing in Canada
Table of Contents
About this industry
Industry definition
The Cigarette Manufacturing industry in China manufactures cigarettes, cigars and cigarette filters. Products include Virginia-type cigarettes, blend-type cigarettes and cigars. This industry does not include the manufacturing of fiber tows for cigarettes.
What's included in this industry?
CigarettesCigarsCompanies
Purchase this report to view all major companies in this industry.
Related Terms
FERMENTATIONCIGARSFILTER RODSSTMAPerformance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
The Chinese Government implements national monopoly on tobacco. STMA implements a unified leadership and monopoly management for the tobacco industry in China, and formulates...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Cigarettes represent over 99% of industry revenue. Cigarettes are the industry's main segment, which has continued to increase in value in recent years, due to a rise in the ...
In this chapter
- Products & Services
- Major Markets
- International Trade
Key metrics
- Largest market segment and value in 2024
- Product innovation level
- Total imports, level and trend
- Total exports, level and trend
- Trade Balance
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
- International trade, including imports by country and exports by country
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
- Recent trends in import and export volumes, country of origin or destination, and expected future trends
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Industry production is controlled by the Government. The production and sales of cigarettes for provinces, like the production volume, cigarette grade, variety, and price, ar...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
The industry is governed by the State Council. China has implemented national monopoly on tobacco. STMA formulates the annual production plan and transfer price of finished c...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
The State Council implements national monopoly on tobacco. Starting from 2003, the cigarette factories were separated from tobacco companies and merged to form provincial-lev...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
Detailed analysis
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
The industry is controlled by the Chinese Government. The State Council implements national monopoly management on tobacco. STMA formulates the total production plan and tran...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Industry profit margins dropped since 2015. An increase in the excise tax for cigarette products since 2015 has resulted in decreasing industry profitability. However, the in...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in China include:
- National Bureau of Statistics China
- General Administration of Customs
- People’s Bank of China
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Cigarette Manufacturing industry in China in 2024?
The market size of the Cigarette Manufacturing industry in China is $220.9bn in 2024.
How many businesses are there in the Cigarette Manufacturing in China industry in 2024?
There are 19 businesses in the Cigarette Manufacturing industry in China, which has declined at a CAGR of 0.0 % between 2019 and 2024.
Has the Cigarette Manufacturing industry in China grown or declined over the past 5 years?
The market size of the Cigarette Manufacturing industry in China has been growing at a CAGR of 3.6 % between 2019 and 2024.
What is the forecast growth of the Cigarette Manufacturing industry in China over the next 5 years?
Over the next five years, the Cigarette Manufacturing industry in China is expected to grow.
What does the Cigarette Manufacturing in China include?
Cigarettes and Cigars are part of the Cigarette Manufacturing industry.
How competitive is the Cigarette Manufacturing industry in China?
The level of competition is high and increasing in the Cigarette Manufacturing industry in China.
