$57.8bn
$XX.Xbn
11,315
112
$X.Xbn
Decades of information have drilled the negative health impacts of regular tobacco use into much of the public's mind, causing fewer and fewer younger consumers to pick up the habit and the percentage of smokers to steadily sink. But that doesn't mean sales have steadily sunk. Cigarette and tobacco manufacturers perform countercyclically to the business cycle, benefitting from nicotine, a naturally occurring chemical in tobacco that provides users with a sense of calm and one of the most addictive substances documented. Sales boosted during the pandemic's peak, as heightened uncertainty and isolation drove many to seek chemical comfort, but slumped as social-distancing measures eased and consumers returned to daily life. The dichotomy between tobacco's known health detriments and nicotine's highly addictive nature imbues the industry with inherent volatility. Revenue has been expanding at a CAGR of 0.5% and is expected to reach $57.8 billion in 2024 when sales will slip 1.3%.
Industry revenue has grown at a CAGR of 0.5 % over the past five years, to reach an estimated $57.8bn in 2024.
Market size is projected to decline over the next five years.
Company | Market Share (%)
2024 | Revenue ($m)
2024 | Profit ($m)
2024 | Profit Margin (%)
2024 |
---|---|---|---|---|
Altria Group, Inc. | 23,002.6 | 11,934.8 | 51.9 | |
Reynolds American Inc. | 3,600.0 | 1,720.8 | 47.8 | |
Imperial Brands Plc | 3,462.5 | 1,097.1 | 31.7 |
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Industry revenue is measured across several distinct product and services lines, including Regular cigarettes, Menthol cigarettes and Smokeless tobacco. Regular cigarettes is the largest segment of the Cigarette & Tobacco Manufacturing in the US.
Cigarettes remain producers' primary revenue stream
Operators in this industry manufacture cigarettes, cigars, loose pipe tobacco and smokeless (i.e. chewing) tobacco. Tobacco manufacturers acquire raw materials from tobacco growers, paper and fiber manufacturers, tobacco stemmers and tobacco redryers and process these into ready-to-use products sold to wholesalers and retailers.
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NAICS 312230 - Cigarette & Tobacco Manufacturing in the US
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Manufacturers contend with an ever-shrinking market. Older smokers who show no signs of quitting are willing to roll with growing prices, enabling producers to generate subst...
Learn about an industry's products and services, markets and trends in international trade.
Cigarettes remain the biggest source of revenue. With bans on menthol cigarettes beginning to emerge and traditional cigarettes falling further out of fashion, producers need...
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Manufacturers will locate near tobacco farmers, the industry’s largest input. Tobacco farmers are almost exclusively located in the Southeast region.
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.
Consumers display strong brand loyalty, making it difficult to sway existing companies from a particular brand. Manufacturers can easily raise the price of tobacco products w...
Learn about the performance of the top companies in the industry.
Major companies dominate the industry. The three largest players make up more than 65.0% of the total market.
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
The industry is heavily regulated. Tobacco products are closely monitored by the FDA and other government bodies. Manufacturers also face advertising restrictions.
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
The industry grapples with significant legal fees. Manufacturers are subject to heavy ongoing litigation fees and ongoing payments to signatories.
Including values and annual change:
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Key data sources in the US include:
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:
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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.
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The market size of the Cigarette & Tobacco Manufacturing in the US industry in United States is $57.8bn in 2024.
There are 112 businesses in the Cigarette & Tobacco Manufacturing in the US industry in United States, which has declined at a CAGR of 1.2 % between 2019 and 2024.
The market size of the Cigarette & Tobacco Manufacturing in the US industry in United States has been growing at a CAGR of 0.5 % between 2019 and 2024.
Over the next five years, the Cigarette & Tobacco Manufacturing in the US industry in United States is expected to decline.
The biggest companies operating in the Cigarette & Tobacco Manufacturing market in United States are Altria Group, Inc., Reynolds American Inc. and Imperial Brands Plc
Manufacturing cigarettes and Manufacturing cigars are part of the Cigarette & Tobacco Manufacturing in the US industry.
The company holding the most market share in United States is Altria Group, Inc..
The level of competition is high and increasing in the Cigarette & Tobacco Manufacturing in the US industry in United States.