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 - Starting a New Business Chapter
The removal of government regulation of the Tobacco Growing industry lowered the barriers to entry. Farmers are no longer required to secure production quotas and tobacco-growing locations are not predetermined. Nevertheless, potential entrants into this industry face significant obstacles.
US tobacco farmers must secure supply contracts with downstream cigarette manufacturers in order to ensure their product is sold, making it difficult for potential entrants with no reputation to establish themselves within the industry.
Additionally, the negative publicity and health concerns surrounding cigarette smoking poses a two-fold barrier to entering operators. First, it has limited federal funding to farmers, allowing no direct payments or price support for tobacco crops... purchase to read more