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 strict tobacco control policy is set to drive 4.2% decline in cigarette output and only 4.1% growth in industry revenue to $158.0 billion in 2017. 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 53 cigarette manufacturers in the industry; merger activity has led to a fall in enterprise numbers over the past five years. The industry employs over 174,500 workers with a payroll of $6.7 billion. Exports are expected to total $643.8 million in 2017, which will account for 0.4% of industry revenue...purchase to read more.

Industry Statistics & Market Size
Revenue
$158bn
Annual Growth 12-17
5.9%
Forecast Growth 17-22
Profit
Employment
174,501
Businesses
133

Industry Report - Industry Investment Chapter

For every dollar spent on labor in the Cigarette Manufacturing industry in China, about $1.12 is invested in capital. However, the low cost of labor in China understates the labor inputs and distorts the ratio in favor of capital, which gives the impression that the industry is more capital intensive than in reality. Although production tends to rely on large-scale investment in capital equipment, there is still a heavy reliance on labor inputs.Small companies generally utilize a greater number of workers and rely less on advanced equipment and machinery, while larger firms tend to be more technologically advanced than smaller companies. The...purchase to read more.

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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    What's in this report

    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

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    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 salesExcise increase for various cigarette productsEnterprises and wages
  • Chart: Revenue Growth

  • Industry Outlook
    International tradeEnterprises and wagesTechnology trends
  • Table: Cigarette Manufacturing Industry Revenue Outlook

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

  • 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
    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
    Shanghai Tobacco (Group) Corporation, Hongta Group, Hongyun Honghe Group, China Tobacco Hubei Industrial LLC, China 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

  • 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
    Table: Industry Data for the Cigarette Manufacturing Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Exports (2008-2022)
  • Imports (2008-2022)
  • Wages (2008-2022)
  • Total Assets (2008-2022)
  • Cigarette Production (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    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.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Cigarette Manufacturing market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    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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