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Raw Tobacco Leaves Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Leaf Type and Application

Raw Tobacco Leaves Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Leaf Type and Application

  • July 2021
  • 125 pages
  • ID: 6128430
  • Format: PDF
  • The Insight Partners


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The raw tobacco leaves market was valued at US$ 31,045.19 million in 2021 and is projected to reach US$ 34,436.28 million by 2028; it is expected to grow at a CAGR of 1.5% from 2021 to 2028. Tobacco products are made by curing raw tobacco leaves. Tobacco leaves contain nicotine and a volatile alkaloid that stimulate brain function. Moreover, continuous innovations in tobacco products and government regulations in selling raw tobacco leaves are projected to create profitable opportunities for active vendors during the forecast period.

Based on leaf type, the global raw tobacco leaves market is segmented into virginia, oriental, and others.The virginia segment is expected to hold the largest share of the market during the forecast period.

Virginia, or flue-cured tobacco, is also known as ’bright tobacco’ because of its golden-yellow to deep-orange color while curing.It is typically cured for a week in heated barns and has a light, vibrant flavor, and taste.

It grows exceptionally well in rainy areas, such as Georgia (USA), southern Brazil, and Zimbabwe, and can be found in almost every cigarette blend.Virginia tobacco is the most widely consumed tobacco across the world.

It is grown, harvested, cured, and processed in a variety of methods. It has a nicotine range from 1% to 4% and sugar ranges from 4% to 25%. Virginia tobacco contains a large amount of sugar and makes the cigarette smoke sweeter. Nicotine in a free-form is present in tobacco smoke obtained from Virginian tobacco. This means that nicotine affects quickly and powerfully in the brain, but the smoke is harsher.

Geographically, the raw tobacco leaves market is segmented into North America, Europe, Asia Pacific (APAC), South and Central America (SAM), and the Middle East & Africa (MEA).During the forecast period, Asia Pacific is likely to account for the largest share of the global raw tobacco leaves market.

According to Asia-Pacific Heart Network, the region has the highest smoking rates in the world, as 2.3 million deaths are recorded in the region due to tobacco consumption-related diseases per year, accounting for about half of the 5 million global tobacco related deaths each year. Further, improvements in retail infrastructure and intensive brand campaigns by prominent tobacco companies, such as Philip Morris International and British American Tobacco, in key markets such as China, Bangladesh, India, and the Philippines are likely to support the market expansion in this region.

The ongoing COVID-19 pandemic has drastically altered the status of the raw tobacco leaves market.The pandemic has had the most influence on the production, logistics, and tourism & travel industries.

The outbreak forced the governments of numerous countries to impose lockdown to decrease the spread of the virus.Thus, several companies are undergoing downtime and some companies are working remotely, which is leading to low productivity and income.

The COVID-19 pandemic has created a significant societal and economic disruption and resulted in closures of stores, factories, and offices.The crisis also put restrictions on manufacturing, distribution, and travel.

All these factors adversely impacted businesses, operations, cash flows, and financial positions during the continuation of the pandemic. The raw tobacco leaves industry was significantly growing before the COVID-19 outbreak. However, it is experiencing an irregularity in recent times, as consumers are selective in their purchases. The condition has substantially disrupted the demand for tobaccos. In several countries, tobacco products are classified as nonessential items, which has lowered the demand for raw tobacco leaves and tobacco products across the globe. COVID-19 is a respiratory disease so creates breathing issues. Therefore, people are avoiding using tobacco products. Also, tobacco smokers are being advised to quit smoking to lower the risk of getting infected by the virus. Thus, the COVID-19 outbreak is expected to restrain the growth of the raw tobacco leaves market in the future.

Universal Corporation, Sopariwala Exports, Alliance One International Inc., Leaf Only,British American Tobacco p.l.c., Leafcon International, BBM Bommidala Group, Star Agritech International, JT Group, and U.S. Tobacco Cooperative Inc. are among well-established players operating in the global raw tobacco leaves market.

The overall global raw tobacco leaves market size has been derived in accordance with both primary and secondary sources.To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the market.

Also, multiple primary interviews have been conducted with industry participants and commentators to validate the data, as well as to gain more analytical insights into the topic. The participants of this process include industry experts such as VPs, business development managers, market intelligence managers, and national sales managers, along with external consultants such as valuation experts, research analysts, and key opinion leaders, specializing in the global raw tobacco leaves market.

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