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Cigarette & Tobacco Manufacturing in the US: Market Research Report

Market Research • Market Size • Industry Statistics • Industry Analysis • Industry Trends

Cigarette & Tobacco Manufacturing Market Research Report | NAICS 31222 | Aug 2016

Smoke free: Declining cigarette use will shift industry's focus to smokeless products

IBISWorld’s Cigarette & Tobacco Manufacturing market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

Report Snapshot
Industry Statistics & Market Size
Annual Growth 11-16
Annual Growth 16-21
Annual Growth
Industry Threats & Opportunities
  • Demand for industry products such as smokeless tobacco helped mitigate declining sales of cigarettes
  • To sustain profit in spite of greater compliance and input costs, the industry has consolidated
  • Rising compliance costs and dwindling demand will have a negative effect on profit
  • ... purchase to read more

Industry Analysis & Industry Trends

Over the past five years, the Cigarette and Tobacco Manufacturing industry persevered despite increasingly challenging operating conditions and intense scrutiny from both the government and the public. Cigarette use has declined steadily in recent decades, but industry operators have been able to slightly offset declining cigarette sales through products like e-cigarettes and other smokeless tobacco. Furthermore, the industry has maintained high profit due to continued consolidation of its largest players. As cigarette smoking continues to decrease over the next five years, these companies will continue to shift their focus to e-cigarettes, which are perceived to have fewer health risks than traditional tobacco products and have become a fast-growing industry product segment... ... purchase to read more

Industry Report - Starting a New Business Chapter

The barriers to entry in the Cigarette and Tobacco Manufacturing industry are extremely high. First, industry prospects must obtain a permit from the Alcohol and Tobacco Tax and Trade Bureau (TTB), which operates under the Department of the Treasury. The bureau's process allows companies to submit an application for permits to manufacture and import cigarettes, cigars, chewing tobacco, snuff, pipe tobacco and roll-your-own tobacco. Applicants must secure manufacturing facilities, obtain a bond for compliance, determine how to address environmental regulations and pay taxes before beginning operations. If the TTB determines that the applicant is eligible, a tobacco application specialist conducts an interview for additional screening. Fin.. ... purchase to read more

Additional Insights for the Cigarette & Tobacco Manufacturing Industry

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

  • Economies of scale
  • Ability to effectively change community behavior
  • Marketing of differentiated products
  • IBISWorld analysts also discuss how external factors such as Percentage of smokers and Excise tax on tobacco products in the Cigarette & Tobacco Manufacturing industry impact industry performance... purchase to read more


    Industry ProductsRelated Reports

    What is the Cigarette & Tobacco Manufacturing Industry?

    Operators in this industry manufacture cigarettes, cigars, loose pipe tobacco, smokeless (i.e. chewing) tobacco and e-cigarettes. Tobacco manufacturers acquire raw materials from tobacco growers, paper and fiber manufacturers, tobacco stemmers and tobacco redryers and process these into ready-to-use products sold to wholesalers and retailers.

    Industry Products
    Regular cigarettesMenthol cigarettesSmokeless tobaccoCigarsE-vapor products
    Industry Activities
    Manufacturing cigarettes Manufacturing cigarsManufacturing smokeless tobaccoManufacturing electronic cigarettes and vaporizers for tobacco useReconstituting tobacco

    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
  • Percentage of smokers
  • Excise tax on tobacco products
  • Regulation for the Cigarette and Tobacco Production industry
  • Consumer spending
  • World price of tobacco
  • Current Performance
  • Profit expansion and industry consolidation
  • Regulatory challenges and rising public scrutiny
  • Chart: Revenue Growth
  • Industry Outlook
  • Profit margins squeezed
  • Diminishing social acceptance
  • Product innovation
  • Table: Cigarette & Tobacco Manufacturing Industry Revenue Outlook
  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Cigarette & Tobacco Manufacturing Industry Lifecycle vs The Economy
  • Products & Markets
    Supply Chains
  • Key Buying Industries
  • Grocery Wholesaling
  • Cigarette & Tobacco Products Wholesaling
  • Supermarkets & Grocery Stores
  • Convenience Stores
  • Key Selling Industries
  • Paper Mills
  • Seasoning, Sauce and Condiment Production
  • Tobacco Growing
  • Wood Pulp Mills
  • Products & Services
  • Regular cigarettes
  • Menthol cigarettes
  • Smokeless tobacco
  • Other
  • E-vapor products
  • Cigars
  • Chart: Cigarette & Tobacco Manufacturing Industry Products and Services Segmentation
  • Demand Determinants
    Major Markets
  • Candy and tobacco wholesalers
  • Broadline grocery distributors
  • Supermarkets
  • Other major retail chains (pharmacies, grocery stores)
  • Other
  • Exports
  • Chart: Major Market Segmentation for the Cigarette & Tobacco Manufacturing Industry
  • International Trade
    Business Locations
  • Chart: Business Locations by State
  • Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Cigarette & Tobacco Manufacturing
  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Cigarette & Tobacco Manufacturing Industry
  • Industry Globalization
    Major Companies
    Altria Group Inc.
    Reynolds American Inc.
    Imperial Brands plc
  • Table: Altria Group Inc. - financial performance
  • Table: Reynolds American Inc. - financial performance
  • Table: Imperial Brands plc - financial performance
  • Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Cigarette & Tobacco 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 & Tobacco 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)
  • Percentage of smokers (2007-2021)
  • Table: Annual Percentage Change for Key Industry Data
  • Table: Key Ratios for Industry Key Data
  • Table: Industry Financial Ratios
  • Jargon & Glossary
  • A small and narrow cigar that is often wrapped in leaf tobacco (not paper)
  • Curing
  • The process of regulating temperature and humidity conditions for freshly harvested tobacco leaves.
  • E-Vapor
  • A broad category of electronic nicotine delivery systems (ENDS) that includes e-cigarettes, larger vaporizers and their accessories.
  • Electronic Cigarette
  • Electronic cigarette is a battery-powered device that contains a nicotine-based liquid that is vaporized and inhaled, simulating the experience of smoking a traditional cigarette.
  • Menthol
  • A chemical derived from the peppermint or spearmint plants. Menthol naturally has a cooling effect, which can help reduce the harshness of tobacco smoke.
  • Reconstituted Tobacco
  • Tobacco made from the pulp of mashed tobacco stems and other parts of the tobacco leaf that would otherwise be waste that are then sprayed with nicotine and other substances lost during processing.
  • Snus
  • A type of moist powder tobacco consumed by placing it under the lip for extended periods of time.

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

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