Overview

IBISWorld’s Cigarette Manufacturing market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

REPORT SNAPSHOT

Industry Analysis & Industry Trends

Revenue for the Cigarette Manufacturing industry in China has been growing 5.9% annually over the past five years. Despite the recent slowdown in China's economy, the country's large smoker population is set to drive 2.2% growth in cigarette output and 2.8% growth in industry revenue to $149.6 billion in 2016. The weaker global economy in 2014 and 2015 had very little effect on the industry as the demand for cigarettes is quite stable.

There are about 54 cigarette manufacturers in the industry; merger activity has led to a fall in enterprise numbers over the past five years. The industry employs over 172.200 workers with a payroll of $6.1 billion. Exports are expected to total $598.3 million in 2016, which will account for 0.4% of industry revenue...

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Industry Report - Starting a New Business Chapter

The establishment of an enterprise producing tobacco products is subject to the approval of the Department of Tobacco Monopoly Administration (DTMA) under the State Council. All enterprises entering the industry must obtain a license for tobacco monopoly production enterprises, and then register with, upon the DTMA's examination, and obtain approval from the Administrative Department for Industry and Commerce.

There is significant brand loyalty among consumers and this is supported by in-store promotions. The integration of production and distribution by existing companies make it difficult for a major new entrant to become established.

The packages of cigarettes and cigars must indicate the grade of tar content and that "smoking is harmful for your health". Als..

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Additional Insights for the Cigarette Manufacturing Industry

IBISWorld identifies 250 Key Success Factors for a business.The most important for the Cigarette Manufacturing Industry are

  • Must have a license
  • Economies of scale
  • Must comply with government regulations
  • IBISWorld analysts also discuss how external factors such as Downstream Demand - Tobacco Product Wholesalers and Levels of Health - Smoking in the Cigarette Manufacturing industry impact industry performance..

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    Industry Products

    What is the Cigarette Manufacturing Industry?

    The Cigarette Manufacturing industry in China manufactures cigarettes, cigars and cigarette filters. Products include Virginia-type cigarettes, blend-type cigarettes and cigars. This industry does not include the manufacturing of fiber tows for cigarettes.

    Industry Products
    Grade-one cigarettes
    Grade-two cigarettes
    Grade-three cigarettes
    Grade-four cigarettes
    Grade-five cigarettes
    Cigars
    Industry Activities
    cigarettes
    cigars

    Table of Contents

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Downstream Demand - Tobacco Product Wholesalers
  • Levels of Health - Smoking
  • Excise - Tobacco Products - State
  • Health Policy - Smoking Laws
  • Legislative Compliance Requirements - Tobacco Product Manufacturing

  • Current Performance
  • Changes in high-priced cigarette sales
  • Excise increase for various cigarette products
  • Enterprises and wages
  • Chart: Revenue Growth

  • Industry Outlook
  • Changes in high-priced cigarette sales
  • Excise increase for various cigarette products
  • Enterprises and wages
  • Current Performance Tables
  • Industry Outlook
  • International trade
  • Enterprises and wages
  • Technology trends
  • Table: Cigarette Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Cigarette Manufacturing Industry Lifecycle vs The Economy

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Department Stores & Shopping Malls
  • Supermarkets

  • Key Selling Industries
  • Paper and Paperboard Manufacturing
  • Tobacco Growing

  • Products & Services
  • Grade-three cigarettes
  • Grade-one cigarettes
  • Grade-two cigarettes
  • Grade-four cigarettes
  • Grade-five cigarettes
  • Cigars
  • Chart: Cigarette Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
  • Development of upstream industries
  • Cigarette consumption
  • Disposable income
  • Public health consciousness
  • Government organizations
  • Government policy

  • Major Markets
  • Wholesalers
  • Retailers
  • Exports
  • Chart: Major Market Segmentation for the Cigarette Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Taxes
  • Purchases
  • Wages
  • Depreciation
  • Other costs
  • Chart: Cost Structure Benchmarking – Sector vs Cigarette Manufacturing

  • Basis of Competition
  • Price
  • Cigarette quality
  • Sales and distribution channels
  • Branding
  • Technical expertise
  • Price
  • Cigarette quality
  • Sales and distribution channels
  • Branding
  • Technical expertise

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Cigarette Manufacturing Industry

  • Industry Globalization
    Major Companies
    Shanghai Tobacco (Group) CorporationHongta GroupHongyun Honghe GroupChina Tobacco Hubei Industrial LLCChina Tobacco Hunan Industrial Co., Ltd.
  • Table: Shanghai Tobacco (Group) Corporation - financial performance
  • Table: Hongta Group - financial performance
  • Table: Hongyun Honghe Group - financial performance
  • Table: China Tobacco Hubei Industrial LLC - financial performance
  • Table: China Tobacco Hunan Industrial Co., Ltd. - financial performance

  • Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Cigarette Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Key Statistics
    Table: Industry Data for the Cigarette Manufacturing Industry
    Includes:
  • Industry Revenue (2007-2021)
  • Industry Gross Product (2007-2021)
  • Establishments (2007-2021)
  • Businesses (2007-2021)
  • Employment (2007-2021)
  • Exports (2007-2021)
  • Imports (2007-2021)
  • Wages (2007-2021)
  • Total Assets (2007-2021)
  • Cigarette Production (2007-2021)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Jargon & Glossary
    Cigars
  • Made from dried and fermented tobacco and usually rolled within tobacco leaves
  • Fermentation
  • A process that allows tobacco leaves to die slowly, which helps to retain the natural tobacco flavor, aroma and burning characteristics.
  • Filter Rods
  • Reduces the amount of smoke, tar, and fine particles inhaled during cigarette smoking.
  • Why buy this report?

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Cigarette Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Cigarette Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Cigarette Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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