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IBISWorld’s Tobacco Growing market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.
Industry Statistics & Market Size
Annual Growth 11-16
Annual Growth 16-21
Industry Analysis & Industry Trends
The 2005 deregulation of the Tobacco Growing industry continues to linger over tobacco farmers. The removal of federal production quotas and price supports initiated an exodus; about one-third of tobacco farmers left the industry. Without government support, small and otherwise unprofitable farmers switched crops or were bought out by larger growers, decreasing the number of industry operators. Nevertheless, the industry has experienced volatility over the past five years stemming from fluctuating weather conditions. Over the coming five years, industry farms will continue to replace falling domestic demand with exports to emerging markets where tobacco consumption is actually on the rise... purchase to read more
Industry Report - Industry Investment Chapter
Along with the rest of the farming sector, tobacco growers have increasingly invested in machinery. Many smaller farmers have exited the Tobacco Growing industry since its deregulation in 2005. Existing large operators have purchased harvesters and automatic transplanters to cut labor costs and produce at lower per-unit costs. The federally funded Tobacco Transition Payment Program has helped farmers finance many of these purchases over the past 10 years. IBISWorld estimates that for every dollar spent on labor, $0.92 is spent on capital equipment. This capital-to-labor ratio has increased over the past five years as farmers use more machinery and tobacco farming becomes more automated.
Capital intensity does not capture the unpaid labor on tobacco farms... purchase to read more
What is the Tobacco Growing Industry?
Farms in this industry grow tobacco leaf. Tobacco farmers purchase inputs, such as fertilizers, agricultural chemicals, pesticides, plant seeds, plant bulbs and curing fuel, from farm supply and other wholesaling industries. The tobacco leaf is exported or sold to domestic tobacco-product manufacturers.
Air-cured darkAir-cured lightCigarFire-curedFlue-curedOther tobacco products
Flue-cured leaf tobacco growingFire-cured leaf tobacco growingCigar leaf growingAir-cured light leaf tobacco growingAir-cured dark leaf tobacco growingOther tobacco products growing