US Tobacco Market Data Review

The U.S. Tobacco Market size is generated $81,793.2 million in 2016 and reached $84,836.3 million in 2020 over the study period 2016-2020. 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. The tobacco industry is a hugely profitable transnational industry that operates all over the world. This industry is well aware that its product is highly addictive and causes widespread death and disability. In the United States, the top tobacco corporations spent $8.2 billion on marketing cigarettes and smokeless tobacco in 2019. This equates to around $22.5 million per day or roughly $1 million per hour. Increases in a range of tobacco products are consistently followed by a moderate increase in both the number of individuals who smoke and the percentage of people who buy other sorts of products, according to research. The use of a number of intriguing methods in the advertising strategy has resulted in considerable advancements and has shown to be a means of remaining competitive and sustaining market dominance. Over the previous decade, most people have seen tobacco as a significant part of their life. Over the study period of 2016-2020, the U.S. tobacco farming industry’s annual revenue grew at a rate of 4.2%.

 

Growing consumption of smoking among the population and rising novel trends of adopting tobacco are some of the factors driving the U.S. Tobacco Industry during 2016-2020.

 

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The report: “U.S. Tobacco Market (2016-2020)", by Industry ARC covers an in-depth information on the following segments of the U.S. Tobacco Market.

By Tobacco- Smokeless Tobacco and Smoking Tobacco (Cigarettes, Cigars, Pipe Tobacco, Roll Your Tobacco, and Waterpipe Tobacco).

• The United States is the world's fourth-largest producer of tobacco. In 2018, tobacco farms in the United States harvested more than 533 million pounds. In the United States, around 249 billion cigarettes were sold in 2017. Recently, the trends of pubbing and partying among adults gives rise to the use of smoke as it became a fashion to show smoking. Companies are also offering a variety of products by changing consumer demand which further surges the adoption of tobacco In the U.S. 
• Growing consumption of smoking among the population and rising novel trends of adopting tobacco are some of the factors driving the U.S. 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 U.S. Tobacco Market Report. 
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The U.S. Tobacco market based on product type can be further segmented into Smokeless Tobacco and Smoking Tobacco. Smoking Tobacco is further into Cigarettes, Cigars, Pipe Tobacco, Roll Your Tobacco, and Waterpipe Tobacco. Cigarettes held a dominant market share in the year 2016. The development of the cigarette industry is owing to the widespread use of tobacco products. Recently, the availability of flavored cigarettes soaring which makes attraction among people to adopt smoke. Every day, over 1,500 adolescents aged 12-17 smoke their first cigarette, according to the US Food and Drug Administration (FDA), and more and more youth aged under 12-17 become daily smokers. About 4.6 percent of high school children which is approximately 7 lakh and 1.6 percent of middle school students smoke cigarettes in the United States.

 

However, Water Pipe Tobacco is the fastest-growing, during the historical period of 2016-2020. Many consumers prefer hookah or water pipe owing to its amazing flavor content and its unique way of smoking. According to American Lung Association, about 2.6 million adults used hookah in 2017. Many people adopt hookah as they consider that smoking hookah is less harmful than smoking cigarettes. Owing to such reasons, the adoption of water pipes increases in the tobacco industry. Moreover, people demand hookah to spend their time more outside so, they prefer someplace where hookah is available which gives rise to the adoption of hookah in many bars and clubs.

Cigarettes are the most well-known tobacco product owing to their low price and ease of use. As people are getting habituated to smoking owing to many reasons which give rise to the adoption of cigarettes. The desire for cigarettes has been fueled by hurried lives combined with tight deadlines and unpredictable working hours in offices. The rising demand for cigarettes can be owing to consumers' belief that smoking cigarettes helps to reduce stress and anxiety, as well as the scientific position that nicotine belongs to the stimulant class. In 2018, the prevalence rate of cigarette smokers grew by 13.7% in the U.S. As compared to other products, cigarettes can be used in a short amount of time, disposed of quickly, and the scent is hidden peacefully. The widespread availability of flavored cigarettes, which come in a wide range of tastes, was boosted the demand for combustible cigarettes.

Recently, companies are launching a variety of tobacco products such as smokeless tobacco, electronic cigarette, and many more that give rise to the trend of adopting tobacco. The trend of smokeless tobacco roses as it contains chewing tobacco, snuff, snus, and dissolvable tobacco products as many people are not able to adjust to smoke that roses the need for smokeless tobacco. People are increasingly using electronic cigarettes as a substitute for traditional cigarettes or unique purposes. The use of e-cigarettes has increased as a result of rising health concerns about the use of traditional tobacco-based cigarettes. The majority of the American population uses e-cigarettes to quit smoking so, the demand for e-cigarettes further rises the growth of the tobacco industry. Owing to such reasons, the trends of adopting cigarettes increased during the historical period 2016-2020.

Tobacco includes toxins that cause damage to the lungs and bring lung cancer. Owing to such reasons, the regulation regarding tobacco products increases. The Federal Food, Drug, and Cosmetic Act (FD&C Act) rules in 2017 govern the production, import, packaging, labeling, advertising, promotion, sale, and distribution of cigarettes, as well as their components, parts, and accessories. The FDA unveiled a tobacco regulation strategy in July 2017 that serves as a multi-year roadmap to better protect children and drastically reduce tobacco-related disease and mortality, including seeking nicotine levels in cigarettes that are minimally addictive or non-addictive. These regulations were hampering the market growth.

Product launches, mergers and acquisitions, joint ventures, and geographical expansions are key strategies adopted by players in the Market. The top 10 U.S. Tobacco Market companies are-

Altria Group Inc., 

Reynolds American Inc., 

British American Tobacco p.l.c. (BAT) Ltd.,

Japan Tobacco Inc, 

Imperial Brands PLC,

Philip Morris International Inc., 

China National Tobacco Corporation, 

ITC Limited, 

Pyxus International, Inc.,

Swedish Match.

In October 2019, Altria Group Inc. launched a new tobacco device in the U.S. which is getting approval by the U.S. Food and Drug Administrator (FDA). The device heats the tobacco instead of burning it, avoiding the chemical process that occurs when smoking a cigarette that produces many harmful toxins.

In September 2020, Reynolds announced its final submission of tobacco to the U.S. food and Drug Administration, and works continued in creating innovative products. Now, it offers innovative vapor products for consumers who are demanding tobacco.