Report Description

The United States tobacco market was valued at USD99.47 billion in 2022 and is projected to grow at a CAGR of over 7.95% through 2028 and is anticipated to project robust growth in the forecast period. The market for tobacco in the United States is witnessing high demand owing to the various factors such as high demand from young consumers, rising tobacco consumption in the country due to launch of new tobacco based products and unique marketing and advertising tactics by several brands.

United States Tobacco Market Scope

Tobacco is a product made from a plant whose leaves have a high concentration of the addictive chemical nicotine. There are numerous techniques to harvest, mature, and process tobacco leaves. The end products may be applied to the gums as dipping and chewing tobacco or breathed as snuff. They may also be smoked in the form of cigarettes, cigars, and pipes.

United States Tobacco Market Overview

There are a number of elements that influence the tobacco market in the United States, including addiction, marketing and advertising, societal and economic concerns, and globalization. Since nicotine is so strongly addictive, the tobacco industry has expanded as a result of the large number of smokers who continue to purchase and consume tobacco products in spite of acknowledged health concerns. For instance, according to the US Centers for Disease Control and Prevention, in the year 2021, around 12.5% of adults smoked cigarettes and about 1,600 youth try their first cigarette each day in the United States. The industry has also made significant investments in marketing and advertising to promote tobacco usage and smoking. Economic factors, such as the manufacturing sector's significance as an employment sector in some areas, have also aided in its expansion. For instance, in 2021, tobacco product manufacturing employment made up one-tenth of one percent of all manufacturing jobs in the US. Finally, the industry has grown and become more competitive as a result of globalization. To retain growth, the industry must adapt and move towards goods like low-nicotine cigarettes due to the major obstacles posed by legislation and health concerns.

United States Tobacco Market Drivers

Due to a number of factors, including the fact that the United States is now the world's fourth-largest tobacco producer behind China, India, and Brazil and the increased accessibility of various tobacco products like cigarettes and cigars, tobacco consumption in the United States is on the rise.  Around 54.7 million persons aged 12 or older, as per the information supplied by the 2021 National Survey on Drug Use and Health, consumed tobacco products. In addition, 10.3 million adults aged 12 or older now smoke cigars, 7.3 million currently used smokeless tobacco, and 1.8 million currently smoked pipes. As a result, increased consumption will have a beneficial effect on market expansion. Nearly 40 million adults in the US, according to the US Centers for Disease Control and Prevention, smoke cigarettes. In the US, every day, approximately 1,600 teenagers begin smoking their first cigarette, and every day, close to 200 teenagers smoke frequently. Additionally, according to 2022 estimates, 4 out of every 100 middle school pupils and 1 out of every 6 high school students used tobacco products. Furthermore, the US tobacco business is expanding at an even faster rate owing to the growing demand for lower nicotine cigarettes.

United States Tobacco Market Trends

More individuals are purchasing tobacco products online as the tobacco sector shifts to internet sales. Convenience, a larger product range, and reduced pricing are some of the benefits of online purchasing. On their website, for instance, Cigars International sells a variety of cigars. Additionally, CigsWay offers a variety of cigarettes from various brands on its website. Customers no longer need to step out of their homes or travel to a physical store to shop as a result of online sales. Additionally, internet sales offer a wider variety of goods, including specialized and hard-to-find things that are not often available. Prices are usually lower than in physical stores since there are fewer overhead costs and greater chances for bulk purchasing online. Thus, it is anticipated that the US tobacco market will expand significantly through online outlets.

Traditional oral smokeless tobacco products are widely used and popular in the US. It is simple to consume it in locations where smoking is not permitted. Smokeless tobacco products are consumed by 2 in every 100 adults aged 18 or older, representing 5.7 million adults who consume smokeless tobacco products in the United States. However, there has been a change in American’s attitude towards using contemporary oral tobacco products, like nicotine pouches. These goods are thought to be safer than conventional oral consumables like snus and snuff. These items fall under a brand-new category and provide consumers with safer, tobacco-free options. Thus, leading tobacco businesses are making inroads into this well-liked product category.

United States Tobacco Market Challenges

Due to growing consumer awareness of the negative effects of tobacco use, the demand for tobacco in the United States is predicted to be low. Nearly 16 million Americans are affected by an illness caused due to smoking, according to information supplied by the US Centers for Disease Control and Prevention. Smoking raises the chance of getting rheumatoid arthritis, some eye illnesses, and immune system problems including TB.

Additionally, smoking cigarettes causes more than 480,000 fatalities each year in the US, including more than 41,000 deaths from secondhand smoke exposure. Approximately 1 in 5 fatalities every year result from this, or 1,300 fatalities each day. Consequently, the US tobacco business is anticipated to witness low demand in the coming years.

Market Opportunities

·       The demand for premium cigars has been growing consistently in recent years, and American culture in general is strongly influenced by cigar smoking. Some of the key factors driving the demand for cigars in the United States are the desire for high-quality cigars, rising consumer disposable incomes, and the growing appeal of cigar smoking as a luxurious lifestyle choice. Marketing has a significant impact on the popularity of cigar brands in the United States. Businesses are developing unique brand identities that appeal to consumers and distinguish their products from those of competitors. Additionally, several tobacco firms provide a variety of premium cigars online. As a result, American tobacco companies should focus more on the cigar sector. Additionally, businesses can position themselves for long-term success in this profitable industry by offering high-quality products that appeal to end users, developing strong brand identities, and implementing effective marketing strategies.

·         In recent years, internet sales of tobacco products have significantly increased in the United States. This has been made possible by the ease of online shopping, the wide range of products available, the great number of regular and significant discounts, and the attractive offers made available by online merchants. For instance, Cigars International has a variety of cigars available on its official website in the US. The selling of tobacco goods is heavily regulated by the government in the country; therefore, the businesses must make sure they abide by all applicable laws. This involves assuring that customers are of legal drinking age and following packaging and labeling regulations. By delivering a mobile-friendly website, broader product descriptions, and a variety of payment options, businesses are expected to make considerable investments in a user-friendly website that is easy to use and gives a seamless shopping experience.


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Market Segmentation

The United States tobacco market is segmented based on product, distribution channel, region, top 10 leading states and competitive landscape. Based on product, the market is fragmented into cigarettes, cigar, smoking tobacco and smokeless tobacco. Further, based on distribution channel the market is segmented into tobacco shops, convenience stores, supermarkets and hypermarkets, online, others include wholesale, counter shops, etc. On the basis of region, the market is divided into south, west, mid-west, north-east.

Company Profiles

Altria Group, Inc., Reynolds American Inc., ITG Brands, LLC, Liggett Vector Brands LLC, Swedish Match USA, Inc, General Cigar Co., Inc., Turning Point Brands, Inc., Dosal Tobacco Corporation, J.C. Newman Cigar Company, Swisher International Group Inc. are some of the major players in the United States tobacco market.

Attribute

Details

Market Size Value in 2022

USD99.47 Billion

Revenue Forecast in 2028

USD154.80 Billion

Growth Rate

7.95%

Base Year

2022

Historic Data

2018 – 2021

Estimated Year

2023

Forecast Period

2024 – 2028

Quantitative Units

Value in USD Billion, CAGR for 2018-2022 and 2023-2028

Report Coverage

Revenue forecast, company share, competitive landscape, growth factors, and trends

Segments Covered

Product

Distribution Channel

Region

Regional scope

, South, West, Mid-West, North-East

Key Companies Profiled

Altria Group, Inc., Reynolds American Inc., ITG Brands, LLC, Liggett Vector Brands LLC, Swedish Match USA, Inc, General Cigar Co., Inc., Turning Point Brands, Inc., Dosal Tobacco Corporation, J.C. Newman Cigar Company, Swisher International Group Inc.

Customization scope

10% free report customization with purchase. Addition or alteration to country, regional & segment scope.

Pricing and purchase options

Avail customized purchase options to meet your exact research needs. Explore purchase options

Delivery Format

PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request)

 

Report Scope:

In this report, United States tobacco market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

  • United States Tobacco Market, By Product:
    • Cigarettes
    • Cigar
    • Smoking Tobacco
    • Smokeless Tobacco
  • United States Tobacco Market, By Distribution Channel:
    • Tobacco Shops
    • Convenience Stores
    • Supermarkets and Hypermarkets
    • Online
    • Others (Wholesale, Counter shops etc.)
  • United States Tobacco Market, By Region:
    • South
    • West
    • Mid-West
    • North-East

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the United States tobacco market.

Available Customizations:

With the given market data, TechSci Research offers customizations according to a company’s specific needs. The following customization options are available for the report:

Company Information:

  • Detailed analysis and profiling of additional market players (up to five).

Table of content

1.    Product Overview

2.    Research Methodology

3.    Executive Summary

4.    Impact of COVID-19 on United States Tobacco Market

5.    Voice of Customers

5.1.  Factors Influencing Purchase Decision

5.2.  Brand Awareness

5.3.  Challenges Faced Post Purchase

5.4.  Preferred Distribution Channel

6.    United States Tobacco Market Outlook, 2018-2028

6.1.  Market Size & Forecast

6.1.1.         By Value

6.2.  Market Share & Forecast

6.2.1.         By Product (Cigarettes, Cigar, Smoking Tobacco, and Smokeless Tobacco)

6.2.2.         By Distribution Channel (Tobacco Shops, Convenience Stores, Supermarkets and Hypermarkets, Online, Others (Wholesale, Counter shops etc.)

6.2.3.         By Region (South, West, Mid-West, North-East)

6.2.4.         By Top 10 Leading States

6.2.5.         By Company (2022)

6.3.  Market Map (By Product, By Distribution Channel, By Region)

7.    United States Cigarettes Market Outlook, 2018–2028

7.1.  Market Size & Forecast          

7.1.1.         By Value

7.2.  Market Share & Forecast

7.2.1.         By Distribution Channel

8.    United States Cigar Market Outlook, 2018–2028

8.1.  Market Size & Forecast          

8.1.1.         By Value

8.2.  Market Share & Forecast

8.2.1.         By Distribution Channel

9.    United States Smoking Tobacco Market Outlook, 2018–2028

9.1.  Market Size & Forecast          

9.1.1.         By Value

9.2.  Market Share & Forecast

9.2.1.         By End User

9.2.2.         By Distribution Channel

10.  United States Smokeless Tobacco Market Outlook, 2018–2028

10.1.              Market Size & Forecast

10.1.1.      By Value

10.2.              Market Share & Forecast

10.2.1.      By Distribution Channel

11.  Market Dynamics

11.1.              Drivers

11.2.              Challenges

12.  Market Trends & Developments

13.  United States Economic Profile

14.  Competitive Landscape

14.1.              Altria Group, Inc.

14.1.1.      Company Details

14.1.2.      Product

14.1.3.      Financial (As Reported)

14.1.4.      Key market Focus & Geographical Presence

14.1.5.      Recent Developments

14.1.6.      Key Management Personnel

14.2.              Reynolds American Inc.

14.2.1.      Company Details

14.2.2.      Product

14.2.3.      Financial (As Reported)

14.2.4.      Key market Focus & Geographical Presence

14.2.5.      Recent Developments

14.2.6.      Key Management Personnel

14.3.              ITG Brands, LLC

14.3.1.      Company Details

14.3.2.      Product & Services

14.3.3.      Key market Focus & Geographical Presence

14.3.4.      Recent Developments

14.3.5.      Key Management Personnel

14.4.              Liggett Vector Brands LLC

14.4.1.      Company Details

14.4.2.      Product

14.4.3.      Key market Focus & Geographical Presence

14.4.4.      Recent Developments

14.4.5.      Key Management Personnel

14.5.              Swedish Match USA, Inc

14.5.1.      Company Details

14.5.2.      Products

14.5.3.      Key market Focus & Geographical Presence

14.5.4.      Recent Developments

14.5.5.      Key Management Personnel

14.6.              General Cigar Co., Inc.

14.6.1.      Company Details

14.6.2.      Products

14.6.3.      Key market Focus & Geographical Presence

14.6.4.      Recent Developments

14.6.5.      Key Management Personnel

14.7.              Turning Point Brands, Inc.

14.7.1.      Company Details

14.7.2.      Products

14.7.3.      Financial (As Reported)

14.7.4.      Key market Focus & Geographical Presence

14.7.5.      Recent Developments

14.7.6.      Key Management Personnel

14.8.              Dosal Tobacco Corporation

14.8.1.      Company Details

14.8.2.      Products

14.8.3.      Key market Focus & Geographical Presence

14.8.4.      Recent Developments

14.8.5.      Key Management Personnel

14.9.              J.C. Newman Cigar Company

14.9.1.      Company Details

14.9.2.      Products

14.9.3.      Key market Focus & Geographical Presence

14.9.4.      Recent Developments

14.9.5.      Key Management Personnel

14.10.            Swisher International Group Inc.

14.10.1.    Company Details

14.10.2.    Product

14.10.3.    Key market Focus & Geographical Presence

14.10.4.    Recent Developments

14.10.5.    Key Management Personnel

15.  Strategic Recommendations

16.  About Us & Disclaimer

Figures and Tables

Figure 1: United States Tobacco Market Size, By Value (USD Billion), 2018-2028F

Figure 2: United States Tobacco Market Share, By Product, By Value, 2018–2028F

Figure 3: United States Tobacco Market Share, By Distribution Channel, By Value, 2018–2028F

Figure 4: United States Tobacco Market Share, By Region, By Value, 2018–2028F

Figure 5: United States Tobacco Market Share, By Top 10 Leading States, By Value, 2018–2028F

Figure 6: United States Tobacco Market Share, By Company, By Value, 2022

Figure 7: United States Tobacco Market Map, By Product, Market Size (USD Billion) & Growth Rate (%), 2022

Figure 8: United States Tobacco Market Map, By Distribution Channel, Market Size (USD Billion) & Growth Rate (%), 2022

Figure 9: United States Tobacco Market Map, By Region, Market Size (USD Billion) & Growth Rate (%), 2022

Figure 10: United States Cigarettes Market Size, By Value (USD Billion), 2018-2028F

Figure 11: World Oriental Tobacco Production (Million Kgs), 2018-2022

Figure 12: United States Cigarettes Market Share, By Distribution Channel, By Value, 2018–2028F

Figure 13: United States Cigars Market Size, By Value (USD Billion), 2018-2028F

Figure 14: World Dark Air-Cured Tobacco Production (Million Kgs), 2018-2022

Figure 15: United States Cigars Market Share, By Distribution Channel, By Value, 2018–2028F

Figure 16: United States Smoking Tobacco Market Size, By Value (USD Billion), 2018-2028F

Figure 17: World All Tobacco Types Production (Million Kgs), 2018-2022E

Figure 18: United States Smoking Tobacco Market Share, By Distribution Channel, By Value, 2018–2028F

Figure 19: United States Smokeless Tobacco Market Size, By Value (USD Billion), 2018-2028F

Figure 20: United States Prevalence of Current Tobacco Use (% of Adults), 2018-2022

Figure 21: United States Smokeless Tobacco Market Share, By Distribution Channel, By Value, 2018–2028F

Frequently asked questions

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The United States tobacco market valued at USD99.47 billion in 2022 and is expected to reach USD154.80 billion in 2028. The growing demand through online channels among consumers, and shifting consumer preference towards oral tobacco products are the major trends.

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The United States tobacco market is experiencing high demand and is expected to witness growth with a CAGR of 7.95% in the forecast period due to rising consumption of tobacco among youth in the country, and spending on a large amount on marketing and advertising of their products by companies.

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The growing awareness among consumers regarding the ill-effects caused by tobacco derived products and several government taxes and regulations are expected to restrain the growth of the tobacco market in the United States.

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Altria Group, Inc., Reynolds American Inc., ITG Brands, LLC, Liggett Vector Brands LLC, Swedish Match USA, Inc, General Cigar Co., Inc., Turning Point Brands, Inc., Dosal Tobacco Corporation, J.C. Newman Cigar Company, Swisher International Group Inc. are some of the leading players in United States tobacco market.

profile

Parvati Sharma

Account Manager BD
Press Release

United States Tobacco Market to Grow with a CAGR of 7.95% During the Forecast Period

Apr, 2023

The United States tobacco market is witnessing high growth owing to the rising demand from young consumers, heavy investment on marketing and advertising and rising tobacco consumption in the country