Lighting up: Operators will continue to exit the industry, leading exports to decline

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 Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Less individuals smoking coupled with the world price of tobacco declining will likely lead to revenue declines
  • An increase in competition has caused profit margins to shrink
  • Local governments are expected to impose higher taxes on tobacco sales
  • Industry Report - Industry Products Chapter

    The majority of leaf tobacco product is designed for use in cigarette production. The main types of tobacco used for this purpose are flue-cured and burley leaf, which is an air-cured tobacco. These varieties are used predominantly because cigarette manufacturers consider them to be an appropriate mix of quality and price.Over the centuries, farmers have developed a wide range of morphologically different types of tobaccos, from small-leafed aromatic plants to larger, broad-leafed cigar tobacco. Despite their difference in size and species, tobacco is generally defined by the curing method applied to each plant. Cur...purchase to read more.

    Additional Insights for the Tobacco Growing Industry

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

  • Output is sold under contract - incorporate long-term sales contracts
  • Superior financial management and debt management
  • Use of specialist equipment or facilities
  • IBISWorld analysts also discuss how external factors such as Trade-weighted index and Consumer spending in the Tobacco Growing industry impact industry performance..

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    What's in this report

    What is the Tobacco Growing Industry?

    Farms in this industry grow tobacco leaf. Tobacco farmers purchase inputs, such as fertilizers, agricultural chemicals, pesticides, plant seeds, plant bulbs and curing fuel, from farm supply and other wholesaling industries. The tobacco leaf is exported or sold to domestic tobacco product manufacturers.

    Industry Products
  • Air-cured dark
  • Air-cured light
  • Fire-cured
  • Flue-cured
  • Cigar and other tobacco products
  • Industry Activities
  • Flue-cured leaf tobacco growing
  • Fire-cured leaf tobacco growing
  • Cigar leaf growing
  • Air-cured light leaf tobacco growing
  • Air-cured dark leaf tobacco growing
  • Other tobacco products growing
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Trade-weighted index
  • Consumer spending
  • Percentage of smokers
  • World price of tobacco

  • Current Performance
  • Deregulation slashes support
  • Putting out the flame
  • Growing health concerns
  • Chart: Revenue Growth

  • Industry Outlook
  • Deregulation slashes support
  • New uses
  • Table: Tobacco Growing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Tobacco Growing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Cigarette & Tobacco Manufacturing
  • Cotton, Sugar & Tobacco Wholesaling

  • Key Selling Industries
  • Cotton, Sugar & Tobacco Wholesaling
  • Farm Supplies Wholesaling
  • Farm, Lawn & Garden Equipment Wholesaling
  • Fuel Dealers
  • Gasoline & Petroleum Wholesaling
  • Tire Wholesaling

  • Products & Services
  • Flue-cured
  • Air-cured light
  • Fire-cured
  • Air-cured dark
  • Cigar and other tobacco products
  • Chart: Tobacco Growing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Other exports
  • Cigarette manufacturers
  • Exports to Switzerland
  • Exports to China
  • Other tobacco product manufacturers
  • Chart: Major Market Segmentation for the Tobacco Growing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWages and depreciationRent, utilities and other costs
  • Chart: Cost Structure Benchmarking – Sector vs Tobacco Growing

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Tobacco Growing Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Tobacco Growing 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 Tobacco Growing Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)
  • World price of tobacco (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Burley Tobacco
  • A light air-cured tobacco used primarily for cigarette production.
  • Commodity Credit Corporation (Ccc)
  • A government entity that helps support and protect the farm industry by providing loans to farmers and their cooperatives.
  • Dark Air-Cured Tobacco
  • A type of tobacco grown for use as chewing tobacco.
  • Flue-Cured Tobacco
  • A type of cigarette tobacco derived from tobacco leaves that have been dried through a flue (a narrow passageway) that transmits heat to the plant without exposing it to any smoke.
  • Tobacco Transition Payment Program
  • Also known as the "Tobacco Buyout", the TTTP replaced the federal marketing quota and price support loan program for tobacco farmers with a set of annual payments from 2005 to 2014
  • Topping And Suckering
  • Topping is the removal of tobacco flowers and suckering is the process of pruning out leaves that would otherwise be unproductive.
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    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
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    The Tobacco Growing 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

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