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Cigarette & Tobacco Manufacturing in the US - Industry Market Research Report

  • June 2017
  • 48 pages
  • Ibisworld
Report ID: 499301

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Smoke signals: Declining cigarette use will shift industry’s focus to smokeless products

Abstract
Cigarette & Tobacco Manufacturing in the US

Over the past five years, the Cigarette and Tobacco Manufacturing industry has persevered despite facing challenging operating conditions and intense scrutiny from both the government and the public. Federal excise taxes on cigarettes rose, and individual states increased their own excise taxes on tobacco several times over the current period. Meanwhile, cigarette consumption continued to decline steadily, further reducing demand for the industry’s largest and most profitable product segment.

Over the next five years, rising public scrutiny and an increasingly stringent regulatory environment, as well as ongoing class action suits against major tobacco manufacturers, will continue to tarnish the image of tobacco, accelerating the decline of this industry. As cigarette consumption continues to dwindle, operators will focus on developing and marketing products perceived to have lower health risks, such as e-cigarettes.

Operators in this industry manufacture cigarettes, cigars, loose pipe tobacco, smokeless (i.e. chewing) tobacco and e-cigarettes. 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.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.

MAJOR COMPANIES
- Altria Group Inc.
- Reynolds American Inc.
- Imperial Brands plc

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