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US NAICS 42494 | Industry Report

Cigarette & Tobacco Product Wholesaling in the US Industry Data and Analysis

AR
Arielle Rose
Analyst New York, United States May 2025

Revenue for the Cigarette and Tobacco Products Wholesaling industry has shrunk over the past five years as wholesalers have contended with expanding regulatory and economic challenges and shifts in consumer preferences. The rapidly growing popularity of e-cigarettes has prompted wholesalers to expand their product portfolios, partially offsetting declines in cigarette and tobacco products. Despite plummeting smoking rates, e-cigarette usage kept sales steady amid the pandemic. Over the past five years, revenue for the Cigarette and Tobacco Products Wholesaling industry has expanded at a CAGR of 2.4% to reach an estimated $169.9 billion in 2025, despite a 3.0% drop in 2025.

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What's included in this industry analysis

IBISWorld's research coverage on the Cigarette & Tobacco Product Wholesaling industry in the United States includes market sizing, forecasting, data and analysis from 2015-2030. The most recent publication was released May 2025.

About this industry

What's this industry report about?

The Cigarette & Tobacco Product Wholesaling industry in the United States operates under the NAICS industry code 42494. Companies in this industry acquire packaged cigarettes and other tobacco products from manufacturers and sell them 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. Related terms covered in the Cigarette & Tobacco Product Wholesaling industry in the United States include snus, cigarillo, e-cigarette, manufacturers' sales branches and offices (msbo), wholesale bypass, broadline distributor, candy and tobacco distributor and merchant wholesaler.

What's included in this industry?

Products and services covered in Cigarette & Tobacco Product Wholesaling industry in the United States include Menthol cigarettes, Nonmenthol cigarettes and Cigars and other products.

What companies are included in this industry?

Companies covered in the Cigarette & Tobacco Product Wholesaling industry in the United States include Core-Mark Holding Company, Inc., Reynolds American Inc. and Altria Group, Inc.

Performance

What's included in the Performance chapter?

The Performance chapter covers detailed analysis, datasets, detailed current performance, sources of volatility and an outlook with forecasts for the Cigarette & Tobacco Product Wholesaling industry in the United States.

Questions answered in this chapter include what's driving current industry performance, what influences industry volatility, how do successful businesses overcome volatility, what's driving the industry outlook. This analysis is supported with data and statistics on industry revenues, costs, profits, businesses and employees.

Products & Markets

What's included in the Products and Markets chapter?

The Products and Markets chapter covers detailed products and service segmentation and analysis of major markets for the for the Cigarette & Tobacco Product Wholesaling industry in the United States.

Questions answered in this chapter include how are the industry's products and services performing, what are innovations in industry products and services, what products or services do successful businesses offer and what's influencing demand from the industry's markets. This includes data and statistics on industry revenues by product and service segmentation and major markets.

Geographic Breakdown

What's included in the Geographic Breakdown chapter?

The Geographic Breakdown chapter covers detailed analysis and datasets on regional performance of the Cigarette & Tobacco Product Wholesaling industry in the United States.

Questions answered in this chapter include where are industry businesses located and how do businesses use location to their advantage. This includes data and statistics on industry revenues by location.

Competitive Forces

What's included in the Competitive Forces chapter?

The Competitive Forces chapter covers the concentration, barriers to entry and supplier and buyer profiles in the Cigarette & Tobacco Product Wholesaling industry in the United States. This includes data and statistics on industry market share concentration, barriers to entry, substitute products and buyer & supplier power.

Questions answered in this chapter include what impacts the industry's market share concentration, how do successful businesses handle concentration, what challenges do potential industry entrants face, how can potential entrants overcome barriers to entry, what are substitutes for industry services, how do successful businesses compete with substitutes and what power do buyers and suppliers have over the industry and how do successful businesses manage buyer & supplier power.

Companies

What's included in the Companies chapter?

The Companies chapter covers Key Takeaways, Market Share and Companies in the Cigarette & Tobacco Product Wholesaling industry in the United States. This includes data and analysis on companies operating in the industry that hold a market share greater than 5%.

Questions answered in this chapter include what companies have a meaningful market share and how each company is performing.

External Environment

What's included in the External Environment chapter?

The External Environment chapter covers Key Takeaways, External Drivers, Regulation & Policy and Assistance in the Cigarette & Tobacco Product Wholesaling industry in the United States. This includes data and statistics on factors impacting industry revenue such as economic indicators, regulation, policy and assistance programs.

Questions answered in this chapter include what demographic and macroeconomic factors impact the industry, what regulations impact the industry, what assistance is available to this industry.

Financial Benchmarks

What's included in the Financial Benchmarks chapter?

The Financial Benchmarks chapter covers Key Takeaways, Cost Structure, Financial Ratios, Valuation Multiples and Key Ratios in the Cigarette & Tobacco Product Wholesaling industry in the United States. This includes financial data and statistics on industry performance including key cost inputs, profitability, key financial ratios and enterprise value multiples.

Questions answered in this chapter include what trends impact industry costs and how financial ratios have changed overtime.

Industry Data

What's included in the Industry Data chapter?

The Industry Data chapter includes 10 years of historical data with 5 years of forecast data covering statistics like revenue, industry value add, establishments, enterprises, employment and wages in the Cigarette & Tobacco Product Wholesaling industry in the United States.

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Frequently Asked Questions

What is the market size of the Cigarette & Tobacco Product Wholesaling industry in the United States in 2026?

The market size of the Cigarette & Tobacco Product Wholesaling industry in the United States is $169.9bn in 2026.

How many businesses are there in the Cigarette & Tobacco Product Wholesaling industry in the United States in 2025?

There are 4,968 businesses in the Cigarette & Tobacco Product Wholesaling industry in the United States, which has grown at a CAGR of 9.0 % between 2020 and 2025.

How may import tariffs affect the Cigarette & Tobacco Product Wholesaling industry in the United States?

The Cigarette & Tobacco Product Wholesaling industry in the United States is unlikely to be materially impacted by import tariffs with imports accounting for a low share of industry revenue.

How may export tariffs affect the Cigarette & Tobacco Product Wholesaling industry in the United States?

The Cigarette & Tobacco Product Wholesaling industry in the United States is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.

Has the Cigarette & Tobacco Product Wholesaling industry in the United States grown or declined over the past 5 years?

The market size of the Cigarette & Tobacco Product Wholesaling industry in the United States has been growing at a CAGR of 2.4 % between 2020 and 2025.

What is the forecast growth of the Cigarette & Tobacco Product Wholesaling industry in the United States over the next 5 years?

Over the next five years, the Cigarette & Tobacco Product Wholesaling industry in the United States is expected to decline.

What are the biggest companies in the Cigarette & Tobacco Product Wholesaling industry in the United States?

The biggest companies operating in the Cigarette & Tobacco Product Wholesaling industry in the United States are Core-Mark Holding Company, Inc., Reynolds American Inc. and Altria Group, Inc.

What does the Cigarette & Tobacco Product Wholesaling industry in the United States include?

Menthol cigarettes and Nonmenthol cigarettes are part of the Cigarette & Tobacco Product Wholesaling industry in the United States.

Which companies have the highest market share in the Cigarette & Tobacco Product Wholesaling industry in the United States?

The company holding the most market share in the Cigarette & Tobacco Product Wholesaling industry in the United States is Core-Mark Holding Company, Inc..

How competitive is the Cigarette & Tobacco Product Wholesaling industry in the United States?

The level of competition is high and increasing in the Cigarette & Tobacco Product Wholesaling industry in the United States.

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