Industry Analysis & Industry Trends
Though government regulations are increasingly discouraging smoking, the industry is heading into a growth phase, with exports on the rise. Higher cigarette consumption rates and fewer tobacco product regulations in major export markets such as China will drive demand. Furthermore, US prices of tobacco leaf will remain competitive, supporting growth in the industry. Farmers will look to new opportunities for demand, such as using tobacco for ethanol and biodiesel... purchase to read more
Industry Report - Industry SWOT Analysis Chapter
The Tobacco Growing industry is in the growth stage of its life cycle. Over the 10-year period to 2018, IBISWorld projects that the industry's value added (IVA), or its contribution to the overall economy, will grow at an annualized rate of 3.3%. Meanwhile, the US GDP is projected to grow at an equivalent 2.7% per year during the same period.
The strong players have survived and thrived within the industry. While consolidation has occurred and is expected to continue into the next five-year period, revenue per establishment and industry profit margins have grown over the past 10 years. Since the end of government regulation in 2005, revenue per establishment has dramatically increased from $186,200 in 2008 to a projected $230,308 by 2018... purchase to read more