Lighting up: Though the number of smokers is falling, electric cigarette popularity will draw new revenue channels

IBISWorld’s industry research report on Tobacco Growing can be used to help you understand the industry’s market size, growth potential and major companies. Five-year forecasts provide insight into the industry’s prospects, so you can make decisions with confidence. This information is perfectly suited to informing your business plans, pitch books, benchmarking and SWOT analysis.


Market Share of Companies
There are no companies with a dominant market share in this industry
Industry Statistics & Market Size
Annual Growth
Annual Growth

Industry Threats & Opportunities

  • Without government support, small and otherwise unprofitable farmers switched crops or were bought out
  • US tobacco is perceived as high quality, allowing US products to command a price premium
  • Emerging economies are quickly becoming major markets for tobacco growers
  • 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.

    Industry Report - Industry Key Buyers Chapter

    Tobacco farming has a very low concentration of ownership, as there are several thousand operators within the industry, none of which have substantial market power. This low concentration is primarily attributable to tough competition from within and outside the United States with respect to supply, so no single farmer can influence the market as a whole. However, concentration has increased due to the exit of many farmers from the industry. As a result, industry revenue has been shared among fewer producers, although still too many for any one operator to capture a measurable share of the total tobacco farming market. The average tobacco farm brings in an estimated $625,710 in revenue, which accounts for less than 1.0% of aggregate industry revenue.

    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 Percentage of smokers in the Tobacco Growing industry impact industry performance..

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    Industry Products

    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
    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

    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
  • Trade-weighted index
  • Percentage of smokers
  • World price of tobacco
  • Consumer spending
  • Demand from cigarette and tobacco manufacturing

  • 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

  • Products & Markets
    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
  • Cigar
  • Air-cured dark
  • 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
    Competitive Landscape
    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
    Major Companies
    There are no major players in this industry
    Operating Conditions
    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
    Key Statistics
    Table: Industry Data for the Tobacco Growing Industry
  • 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)
  • World price of tobacco (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Jargon & Glossary
    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.
  • 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 Tobacco Growing:
    • 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 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

    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 Tobacco Growing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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