Industry Analysis & Industry Trends
The 2005 deregulation of the Tobacco Growing industry continues to linger over tobacco farmers. The end of price supports has led to an exodus of farmers; however, deregulation has also boosted industry exports as domestic demand for tobacco has declined, helping the industry maintain moderate growth. 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. Additionally, potential alternate uses for tobacco leaves could provide additional revenue streams... purchase to read more
Industry Report - Industry SWOT Analysis Chapter
The Tobacco Growing industry is in the mature stage of its life cycle. Over the 10-year period to 2020, IBISWorld projects that the industry's value added (IVA), or its contribution to the overall economy, will grow at an annualized rate of 2.8%. This is in-line with projected US GDP growth of 2.5% per year on average during the same period.
While consolidation has occurred and is expected to continue, revenue per establishment and industry profit margins have grown over the past 10 years. The strong players have survived and thrived within the industry. Following the end of government support in 2005, revenue per establishment is projected to dramatically increase from $108,083 in 2010 to $573,683 by 2020... purchase to read more