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 SWOT Analysis Chapter
The Tobacco Growing industry is in the mature stage of its life cycle. Over the 10-year period to 2021, IBISWorld projects that the industry's value added (IVA), or its contribution to the overall economy, will grow at an annualized rate of 7.4%. This is faster with projected US GDP growth of 2.2% 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 $159,278 in 2011 to $371,565 by 2021... purchase to read more