Tobacconists in the US - Market Research Report (2014-2029)
New York, United States
Last Updated: June 2024
NAICS OD5954Revenue
$18.6bn
Past 5-Year Growth
Profit
$X.Xbn
Employees
97,864
Businesses
60,961
Wages
$X.Xbn
Tobacconists in the US industry analysis
Tobacconists benefit from selling products that contain, among other things, nicotine, which is a highly addictive substance. As a result, few macroeconomic conditions significantly impact sales for tobacconists, as consumers who regularly use tobacco products are typically willing to continue making purchases regardless of economic conditions. Given these circumstances, despite the pandemic and volatile economic conditions, revenue has been growing at a CAGR of 4.4% over the past five years and is expected to reach $18.6 billion in 2024, when revenue will decline an estimated 1.2%.
Trends and Insights
- Changes in macroeconomic conditions have little impact. Given the highly addictive nature of nicotine, a key chemical in tobacco products, regular consumers are rarely deterred from purchasing such goods due to negative economic conditions.
- Traditional cigarettes still dominate sales. Despite growing awareness of the health concerns tied to smoking cigarettes, they continue to account for the lion’s share of revenue.
- Cities provide a greater pool of consumers. Given the declining rate in smokers, locating a shop near a high concentration of consumers is vital to ensuring a consistent customer base.
- Tobacco products are sold through a slew of retailers. Grocery stores, pharmacies, gas stations, convenience stores and more sell tobacco products and are often more convenient for consumers. With so many external forces in play, competition is high and heating up.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 4.4 % over the past five years, to reach an estimated $18.6bn in 2024.
Trends and Insights
Nicotine's addictive nature keeps sales high despite fluctuations
- Most tobacconists generate the bulk of revenue from products containing some form of tobacco. Tobacco contains nicotine, a highly addictive chemical, so regular users are undeterred by many negative factors that might otherwise impact consumer demand.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to decline over the next five years.
Trends and Insights
Growing awareness of electronic cigarette risks will curb users
- As e-cigarettes become older and more research is done into the long-term effects of regular use, most health professionals agree that greater health risks will come to light.
Biggest companies in the Tobacconists in the US
| Company | Market Share (%)
2024 | Revenue ($short_0)
2024 | Profit ($short_0)
2024 | Profit Margin (%)
2024 |
|---|
There are no companies that hold a large enough market share in the Tobacconists in the US industry for IBISWorld to include in this product.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Cigarettes, Chew/smokeless tobacco and E-cigarettes, including refills, disposable and kits . Cigarettes is the largest segment of the Tobacconists in the US.
Trends and Insights
Despite growing health awareness, cigarettes remain tobacconist's bread and butter
- The cigarettes product segments includes mentholated and nonmenthol, prerolled cigarettes, which typically come in packs of ten to 20 individual cigarettes. These products, like all products containing tobacco in the US, have highly visible warnings for consumers, alerting them to the negative health impacts of smoking.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Mental Health & Substance Abuse Centers in the US
Complementors
- Tobacco Growing in the US
- Cigarette & Tobacco Manufacturing in the US
- Cigarette & Tobacco Products Wholesaling in the US
International industries
- Global Cigarette & Tobacco Manufacturing
- Tobacco Product Wholesaling in the UK
- Tobacco Growing in China
Table of Contents
About this industry
Industry definition
This industry retails various types of tobacco, cigars, pipes and accoutrements such as ashtrays, humidors and cigar cutters to final consumers.
What's included in this industry?
Retailing cigarsRetailing smokers' supply Retailing chew tobacco Retailing e-cigarettes and vaping products Retailing tobacco pipesCompanies
Purchase this report to view all major companies in this industry.
Related Terms
SNUSCIGARILLOE-CIGARETTEIndustry Code
NAICS 45399 - Tobacconists in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Changes in macroeconomic conditions have little impact. Given the highly addictive nature of nicotine, a key chemical in tobacco products, regular consumers are rarely deterr...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Traditional cigarettes still dominate sales. Despite growing awareness of the health concerns tied to smoking cigarettes, they continue to account for the lion’s share of rev...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Cities provide a greater pool of consumers. Given the declining rate in smokers, locating a shop near a high concentration of consumers is vital to ensuring a consistent cust...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each state in 2024
- Number and share of revenue each state accounts for in 2024
- Number and share of wages each state accounts for in 2024
- Number and share of employees in each state in 2024
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Tobacco products are sold through a slew of retailers. Grocery stores, pharmacies, gas stations, convenience stores and more sell tobacco products and are often more convenie...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
The average tobacconist is very small. On average, a tobacconist employs just one or two individuals, with many businesses operating as nonemploying entities, meaning the own...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
Detailed analysis
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Regulation is high and rising. The public’s awareness of the health risks of using tobacco products grows daily, resulting in new and stricter regulations for retailers of su...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Profit is slim but ticking upwards. A decline in the global price of tobacco trickled down to tobacconists, lowering purchase costs. As a result, many were able to capitalize...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Industry Multiples (2017-2022)
- Industry Tax Structure (2017-2022)
- Income Statement (2017-2022)
- Balance Sheet (2017-2022)
- Liquidity Ratios (2017-2022)
- Coverage Ratios (2017-2022)
- Leverage Ratios (2017-2022)
- Operating Ratios (2017-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Tobacconists in the US industry in United States in 2024?
The market size of the Tobacconists in the US industry in United States is $18.6bn in 2024.
How many businesses are there in the Tobacconists in the US industry in 2024?
There are 60,961 businesses in the Tobacconists in the US industry in United States, which has grown at a CAGR of 10.9 % between 2019 and 2024.
Has the Tobacconists in the US industry in United States grown or declined over the past 5 years?
The market size of the Tobacconists in the US industry in United States has been growing at a CAGR of 4.4 % between 2019 and 2024.
What is the forecast growth of the Tobacconists in the US industry in United States over the next 5 years?
Over the next five years, the Tobacconists in the US industry in United States is expected to decline.
What does the Tobacconists in the US in United States include?
Retailing cigars and Retailing smokers' supply are part of the Tobacconists in the US industry.
How competitive is the Tobacconists in the US industry in United States?
The level of competition is moderate and increasing in the Tobacconists in the US industry in United States.
