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Cigarette & Tobacco Products Wholesaling in the US: Market Research Report

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

Cigarette & Tobacco Products Wholesaling Market Research Report | NAICS 42494 | Oct 2016

Kicking the habit: Antismoking campaigns and declining smoking rates will singe wholesalers

IBISWorld’s Cigarette & Tobacco Products Wholesaling market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

Report Snapshot
Industry Statistics & Market Size
Revenue
$123bn
Annual Growth 11-16
1.0%
Annual Growth 16-21
Annual Growth
Profit
Profit
Employment
49,599
Businesses
3,309
Industry Threats & Opportunities
  • Tobacco products have faced regulatory scrutiny from the government and public
  • Due to increased regulation, operators focused on marketing non-cigarette tobacco products
  • Operators face the threat of wholesale bypass from retailers and manufacturers
  • ... purchase to read more

Industry Analysis & Industry Trends

The Cigarette and Tobacco Products Wholesaling industry has performed well over the past five years despite growing regulatory, economic and operational challenges. Over the past two decades, cigarettes and other tobacco products have faced intense regulatory scrutiny from both the government and the public. Although tobacco wholesalers have performed well over the past five years, more consumers will continue to reduce tobacco consumption or quit smoking altogether in the coming years, driving down demand for cigarettes and other conventional tobacco products... ... purchase to read more

Industry Report - Industry Locations Chapter

The spread of industry establishments generally follows the spread of upstream tobacco product manufacturers and downstream retailers. Based on data from the US Census Bureau, tobacco product wholesalers are heavily concentrated in the Southeast, Mid-Atlantic and the Great Lakes regions. A large share of cigarette manufacturing establishments is also located in these regions. The Southeast region accounts for the largest share of industry establishments, with Florida and North Carolina being most significant. Likewise, almost two-thirds of tobacco product manufacturing establishments are also based in this region, and the region is major tobacco growing area. The region is also home to a third of all convenience stores, a major downstream market for this industry’s products. Ove.. ... purchase to read more

Additional Insights for the Cigarette & Tobacco Products Wholesaling Industry

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

  • Economies of scale
  • Having relationships with key markets
  • Automation - reduces costs, particularly those associated with labor
  • IBISWorld analysts also discuss how external factors such as Excise tax on tobacco products and Percentage of smokers in the Cigarette & Tobacco Products Wholesaling industry impact industry performance... purchase to read more

     


    Industry ProductsRelated Reports

    What is the Cigarette & Tobacco Products Wholesaling Industry?

    Companies within this industry acquire packaged cigarettes and other tobacco products from manufacturers and sell the goods to retailers such as convenience stores, supermarkets, specialized tobacco stores, street vendors or internet tobacco retailers. They may also sell to other wholesalers. The sales and distribution offices of tobacco product manufacturers are included in this industry.

    Industry Products
    Menthol cigarettesRegular cigarettesCigarsOther tobacco productsNon-tobacco products
     
    Industry Activities
    Distributing cigarettesDistributing cigarsDistributing loose and pipe tobacco Distributing smokeless tobacco products such as snuff or snusDistributing modern tobacco products such as e-cigarettes or vaporizersDistributing accessories such as lighters, hookahs (water pipes) or ashtrays


    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
  • Excise tax on tobacco products
  • Percentage of smokers
  • Regulation for the Cigarette and Tobacco Production industry
  • Consumer spending
  • Current Performance
  • Tobacco regulation, excise taxes and demand for industry products
  • Industry structure
  • Chart: Revenue Growth
  • Industry Outlook
  • Smoking rates on the way down
  • Table: Cigarette & Tobacco Products Wholesaling Industry Revenue Outlook
  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Cigarette & Tobacco Products Wholesaling Industry Lifecycle vs The Economy
  • Products & Markets
    Supply Chains
  • Key Buying Industries
  • Supermarkets & Grocery Stores
  • Convenience Stores
  • Beer, Wine & Liquor Stores
  • Pharmacies & Drug Stores
  • Gas Stations with Convenience Stores
  • Small Specialty Retail Stores
  • Non-Hotel Casinos
  • Golf Courses & Country Clubs
  • Bars & Nightclubs
  • Key Selling Industries
  • Cigarette & Tobacco Manufacturing
  • Products & Services
  • Regular cigarettes
  • Menthol cigarettes
  • Non-tobacco products
  • Other tobacco products
  • Cigars
  • Chart: Cigarette & Tobacco Products Wholesaling Industry Products and Services Segmentation
  • Demand Determinants
    Major Markets
  • Other Wholesalers
  • Convenience stores and gas stations
  • Supermarkets, pharmacies and grocery stores
  • Other retail channels
  • Chart: Major Market Segmentation for the Cigarette & Tobacco Products Wholesaling Industry
  • International Trade
    Business Locations
  • Chart: Business Locations by State
  • Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • State or local excise taxes
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Cigarette & Tobacco Products Wholesaling
  • Basis of Competition
  • Internal Competition
  • External competition
  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Cigarette & Tobacco Products Wholesaling Industry
  • Industry Globalization
    Major Companies
    McLane Company Inc.
    Altria Group Inc.
    Reynolds American Inc.
    Core-Mark Holding Company, Inc.
  • Table: McLane Company Inc. - financial performance
  • Table: Altria Group Inc. - financial performance
  • Table: Reynolds American Inc. - financial performance
  • Table: Core-Mark Holding Company, Inc. - financial performance
  • Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Cigarette & Tobacco Products Wholesaling 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 Products Wholesaling Industry
  • Includes:
  • Industry Revenue (2007-2021)
  • Industry Gross Product (2007-2021)
  • Establishments (2007-2021)
  • Businesses (2007-2021)
  • Employment (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
    Broadline Distributor
  • Wholesalers that distribute a wide range of grocery and nonfood items; tobacco products generate only a small and incidental share of these wholesalers' revenue.
  • Candy And Tobacco Distributor
  • Wholesalers that primarily distribute tobacco products and confectioneries (e.g. candy and snacks); these companies generate only a small share of revenue from general grocery and nonfood items.
  • Cigarillo
  • A small and narrow cigar that is often wrapped in leaf tobacco (not paper).
  • E-Cigarette
  • A battery-powered electronic device that simulates the act of smoking cigarettes by producing water vapor (which resembles smoke), while delivering nicotine via the liquid solution when heated.
  • Manufacturers' Sales Branches And Offices (Msbo)
  • The sales and distribution divisions of large tobacco manufacturers, which sell directly to large, national wholesalers such as McLane Co. and Core-Mark.
  • Merchant Wholesaler
  • Traditional distributors that purchase products from upstream suppliers for distribution to retailers and other downstream markets.
  • Snus
  • A smokeless tobacco product that is placed under the lip for absorption through the gums rather than being inhaled or ingested.
  • Wholesale Bypass
  • A growing trend whereby producers supply goods directly to retailers and end users using their own distribution channels, rather than relying on intermediary merchant wholesalers.

  • 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 Products Wholesaling:
    • 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 Products Wholesaling 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 Products Wholesaling, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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