Summary
Another drag: An increasingly stringent regulatory environment will likely continue to tarnish the image of tobacco, leading to declines
Abstract
Cigarette & Tobacco Manufacturing in the US
Cigarette and tobacco manufacturers produce various tobacco products, including cigarettes, cigars and smokeless tobacco. The industry excludes electronic cigarettes. The industry performs countercyclically to the business cycle. In periods of economic downturn, increased unemployment and decreased consumer confidence, smoking and tobacco usage increases as people find ways to self-medicate and ease stress. The COVID-19 pandemic has significantly increased tobacco consumption. Lockdown mandates forced establishments to close to curtail the virus’s spread, causing rising unemployment. Enhanced unemployment benefits and stimulus checks also contributed to disposable income, increasing revenue. Consumers couldn’t spend money in many other sectors of the economy, resulting in a larger proportion of the extra income going toward tobacco products.
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.
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.
