The Canada Tobacco Market had generated a revenue of $27,652.7 million in 2016. Tobacco is made up of the nicotine-rich leaves of an American plant that are dried and fermented before being used for smoking or chewing. Various Nicotiana species, commonly referred to as tobacco plants, are grown as decorative garden plants. Nicotiana tabacum is a plant that is grown all over the world to produce tobacco leaves for cigarettes and other tobacco products. Nicotiana tabacum is a member of the Solanaceae family. Nicotine from chewing tobacco may be both a stimulant and a depressant to the central nervous system, therefore it falls into the stimulant category. Nicotine inhalation causes the release of the chemicals adrenaline and dopamine. This molecule is responsible for the "jolt" that smokers experience. Epinephrine increases feelings of relaxation and pleasure. The Canadian Tobacco Market was driven by the rising number of smokers around the region, as well as the launch of unique products such as clove cigarettes and menthol cigars. The rising popularity of premium tobacco products made with flue-cured tobacco and fine whole leaf as stimulants are poised to move the Canadian Tobacco Market forward from 2016 to 2020. However, several strict laws restricts the sale of tobacco products via vending machines and the internet. The law also prohibits the sale of single cigarettes and small packets of cigarettes.
Canada Tobacco Market Report Coverage
The report: “Canada Tobacco Market (2016 -2020)", by Industry ARC covers an in-depth analysis of the following segments of the Canada Tobacco Industry.
By Tobacco – Smokeless Tobacco and Smoking Tobacco (Cigarette, Cigar, Pipe Tobacco, Roll Your Own and Others).
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Key Takeaways
- The increasing external competition and marginal increases in per capita disposable income are projected to erode any revenue growth. However, certain market segments, such as electronic cigarettes, or e-cigarettes, are projected to continue displaying robust growth.
- A detailed analysis of strengths, weaknesses, opportunities, and threats will be provided in the Canada Tobacco Market Report.
Canada Tobacco Market Segmentation Analysis- By Tobacco
The Canada Tobacco market based on product type can be further segmented into Smokeless Tobacco and Smoking Tobacco. Further, Smoking Tobacco can be segmented into cigarette, cigar, pipe tobacco, roll your own, and others. In 2016, cigarettes had the highest proportion of the market. The popularity of expanding partying and pub culture among millennial and working-class people have fuelled demand for Flavored and unflavoured cigarettes across the country in recent years. Furthermore, nicotine, which is found in cigarettes, belongs to the stimulant class and functions as a stimulant. Thus, the cigarettes segment's growth is being aided by a growing number of appealing product introductions.
Luxury cigar trends can see a steady rebound in the short term, with an optimistic economic outlook in the long run, as consumers are unable to divert their attention away from smoking, leading to increased spending. The trends that make predicting growth momentum and accurately estimating future potential in the Canada Cigar Market simple. Furthermore, many Canadian young generations see flavoured cigars as a viable alternative to cigarettes. Despite their same size and shape, small cigars have similar filters. As a result, they're a viable alternative to cigarettes.
Canada Tobacco Market Drivers
The Fast Premiumization Of Cigars Has Propelled The Buyer Pretences.
The cigar market in Canada has been propelled by an increased buyer preference for products that glorify opulent lifestyles, which corresponds to the fast premiumization of cigars. Furthermore, government restrictions pertaining to tobacco and tobacco products had an impact on and continue to be a crucial element driving luxury cigars and hence tobacco demand in the Canadian market. The FDA, for instance, requires luxury cigar manufacturers and retailers to name their products with mandatory warning statements, similar to what was previously required on luxury cigarette and tobacco packaging; these warnings should also be remembered for any notices and advertising for luxury cigars.
The Development Of Novel Smoking Products Has Fuelled The Market Growth Despite Regulatory Challenges.
Despite facing harsh regulatory challenges, taxation, and decreased cigarette usage, Canada's cigarette and tobacco manufacturing industry has thrived. Over the last five years, the government has raised excise taxes multiple times in an attempt to reduce smoking by compelling industry operators to raise costs in order to maintain profitability. This tactic has worked since cigarette consumption has decreased over time, which has harmed the industry. Much of the industry's revenue growth has been fuelled by the development of novel smoking products. Since such products are regarded to be less dangerous than cigarettes, they have grown in popularity and become a viable alternative to cigarette production, with major manufacturers launching their first goods as early as 2018.
Canada Tobacco Market Challenges
Strict Rules And Increasing Prices Are To Impede The Market Expansion.
The Canada market for tobacco is being stifled by severe rules in the country and a ban on various marketing strategies for tobacco goods. Like most forms of tobacco advertising, promotion and sponsorship are prohibited, with a few limited exceptions. Tobacco products may be advertised at adult-only venues and through direct mail to named adults. In addition, cross-border advertising is not restricted. Furthermore, the laws also restrict the sale of tobacco products via vending machines and the internet. The law prohibits the sale of single cigarettes and small packets of cigarettes. The sale of tobacco products is prohibited to persons under the age of 18. All these measures are to hinder the market growth to a large extent.
Canada Tobacco Industry Outlook
Product launches, mergers and acquisitions, joint ventures, and geographical expansions are key strategies adopted by players in the Canada Tobacco Market. The top 10- Canada Tobacco Market companies’ are-
- Cigar Chief
- John Player & Sons
- Benson & Hedges Canada Company
- Macdonald Tobacco Inc.
- Imperial Brands Ltd.
- Acti-Serv
- Westridge Resources Inc.
- Alex Café Enr
- Alexander & Munro LLC
- Alfie'S Cigar
Recent Developments
- In December 2017, Westridge Resources Inc. announced the completion of acquiring Harrys International Manufacturing Inc., which is headquartered in Vancouver, BC, Canada.
Relevant Titles
Tobacco Market – Forecast(2022 - 2027)
Report Code: FBR 0250
US Tobacco Market Data Review (2016 - 2020)
Report Code: IMCMR 0006
