The China Unmanufactured Tobacco Market production was 2,335.1 Th Metric Tons in 2016 over the study period 2016-2020. Tobacco is made from the leaves of tobacco plants and contains nicotine, making it a highly addictive substance. Instead of smoking cigarettes, many individuals in China put tobacco leaves in their mouths and suck on them. Tobacco is a globally successful multinational corporation with activities all over the world. China is the world's largest producer and consumer of tobacco and about one-third of tobacco products are produced in China. The tobacco industry has three systems that include tobacco agriculture, tobacco manufacturing, and the tobacco trade. In China's tobacco agricultural system, the area used for the growth of tobacco leaf and the yields of tobacco leaf was growing with a fluctuation in China. Over 300 million Chinese people use tobacco out of the world's 1.3 billion smokers. Similarly, China accounts for nearly 8 million deaths caused by tobacco each year. The Chinese tobacco market is dominated by China National Tobacco Corporation (CNTC), a government-owned monopoly that controls nearly all of the country's cigarette sales. In 2020, China's tobacco production amounted to 2.13 million metric tons.
Cigarette smoking rose among millennials and growth in the availability of a variety of tobacco products were some of the factors that drove the China Tobacco Industry during the historical period of 2016-2020.
China Tobacco Market Report Coverage
The report: “China Tobacco Market (2016-2020)", by Industry ARC covers an in-depth information on the following segments of the China Tobacco Market.
By Tobacco- Unmanufactured Tobacco
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Key Takeaways
- In China, the economic cost of smoking is 392,591 million yuan renminbi. Owing to its quickly developing tobacco industry and persistent smoking-related health crisis, the country has earned the moniker "the smoking dragon”. Chinese tobacco industry generated about 115.63 billion yuan profit in 2020 owing to rising demand for water pipes in various pubs and bars as individuals seek locations where pipe tobacco can be purchased, resulting in increased adoption of the water pipe in various clubs and bars.
- Cigarette smoking rising among millennials and the growing availability of a variety of tobacco products are some of the factors driving the China Tobacco Market. However, stringent regulations of tobacco are some of the factors impeding the market growth.
- A detailed analysis of strengths, weaknesses, opportunities, and threats will be provided in the China Tobacco Market Report.
China Tobacco Market Segmentation Analysis- By Tobacco
Cigarettes held a dominant market share in the year 2016. China's state‐owned tobacco monopoly company produces over 1.7 trillion cigarettes annually, generating almost US$2 billion in profit and taxes. Because of its simple availability and growing habit of portraying smoking as cool, cigarette demand is surging among adolescents. Many people who work long hours, especially adults, smoke cigarettes because it makes them feel more energised and allows them to sleep less. Some people tend to smoke cigarettes regularly, which drives up cigarette sales in China. China experienced a more than 40% increase in cigarette sales and thus enhancing the market growth.
However, Smokeless tobacco is the fastest-growing, during the historical period of 2016-2020. It is owing to growing smoking bans and awareness associated with cigarette consumption. Smokeless tobacco is available in a variety of flavors such as peach, apple, honeydew, strawberry, pineapple, honeysuckle, champagne, and prune which attracts consumers to use smokeless tobacco products. China has been reported to be the highest producer of smokeless tobacco in the world.
China Tobacco Market Drivers
Smoking Consumption Roses Among Adults That Have Readily Aided The Market Growth
Cigarettes are primarily used by millennials and adults owing to their low cost and availability. Furthermore, because many adults are addicted to cigarettes and smoke them daily, cigarette consumption is on the rise, increasing the demand for cigarettes. Workers' busy schedules, combined with tight deadlines and lengthy office hours, have driven the desire for cigarettes. Adults regard cigarettes as a stress reliever and believe that smoking is the sole way to cure all issues. Cigarette sales surged as a result of this assumption among adults. Nearly 2.4 trillion cigarettes were sold in China in 2018. Every year, China's tobacco sector generates around 2.3 trillion cigarettes. China's total cigarette production accounts for 40% of global cigarette production.
Growing Availability In Variety Of Tobacco Products Owing To Increase In Creativity Among Manufacturers To Launch Various Flavors Is Set To Drive The Market Growth
Tobacco consumption is increasing over the world, and corporations are focusing on delivering a variety of goods, such as smokeless tobacco and electronic cigarettes, to encourage people to use tobacco. As a result of many people's inability to modify their smoking habits, the demand for smokeless tobacco is increasing. Tobacco products that are smokeless include gum, powder, vaporizers, and chewable tobacco. Electronic cigarettes are gaining popularity as a substitute for traditional cigarettes or as a method to stand apart. The usage of e-cigarettes has increased as a response to rising health concerns about traditional tobacco-based cigarettes. As a result of these factors, manufacturers are generating a plethora of products to attract customers, resulting in market expansion from 2016 to 2020.
China Tobacco Market Challenges
Stringent Government Regulation In Tobacco Products Is Some Of The Factors Impeding The Market Growth
In China, smoking is completely prohibited in at least 28 indoor public places, including medical facilities, restaurants, bars, and most public transportation. The use of e-cigarettes is prohibited in schools, kindergartens, and other public venues. The State Tobacco Monopoly Administration and the State Administration for Market Regulation prohibit online advertising and online sales of e-cigarettes. In addition, the sale of e-cigarettes is prohibited to persons under the age of 18. Some sub-national jurisdictions have enacted laws restricting the use of e-cigarettes where smoking is prohibited and e-cigarette advertising, promotion, and sponsorship.
China Tobacco Market Industry Outlook
Product launches, mergers and acquisitions, joint ventures, and geographical expansions are key strategies adopted by players in the China Tobacco Market. The top 10- China Tobacco Market companies are-
- Hubei China Tobacco Industry Co.,
- Hongta Tobacco Group Co. Ltd.,
- China Tobacco Jiangxi Industrial LLC,
- Jilin Tobacco Industrial Co. Ltd.,
- Hunan China Tobacco industry Co.,
- Shangai Tobacco Group Co. Ltd.,
- Hongyun Tobacco Group Co. Ltd.,
- Heilongjiang Tobacco Group,
- RLEX Technology,
- China Tobacco Zhejiang Industrial Co. Ltd.
Recent Developments
- In December 2019, RELX Technology in china announced the launch of Project Sunflower. Project Sunflower consists of adopting ID and facial recognition technologies to ensure that only adults are able to purchase tobacco products in its China stores. As China’s leading e-cigarette brand that has attained over 60 percent market share in China, RELX aims to continue to lead industry standards that protect minors from tobacco products.
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