Tobacco Products - G7

In 2024, the revenue in the Tobacco Products market for the G7 countries amounts to US$262.1bn.
It is projected that the market will experience an annual growth rate of 0.97% (CAGR 2024-2029).
Cigarettes represent the largest segment in this market, with a market volume of US$206.0bn in 2024.
When comparing the global market, in China generates the highest revenue, reaching US$298,500m in 2024.
This indicates the significant contribution of in China to the overall market.
In terms of per capita revenues, each person in the G7 countries is expected to generate US$375.50 in 2024.
This provides insight into the level of consumption and economic impact of the Tobacco Products market on individuals within these countries.
Looking at the distribution channels, online sales are estimated to account for 16.1% of the total revenue in the Tobacco Products market by 2024.
This highlights the increasing significance of e-commerce in the industry.
Overall, the Tobacco Products market is a substantial industry within the G7 countries, with significant revenue and growth potential.
In Japan, the tobacco market has seen a decline in recent years due to increased health consciousness and government regulations.

Key regions: Worldwide, India, United States, China, Germany

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Analyst Opinion

Tobacco products have been the focus of tightening regulations for decades. Higher taxation and increasing health awareness among consumers have reduced smoking rates and volume consumption significantly in the past. Over the forecast period, a certain stabilization of these losses is expected to happen. Most growth in the sector, however, is attributable to novel, risk-reduced products that can broadly be classified as vaping products or e-cigarettes (e.g., Juul).

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on consumer spending on Tobacco products, namely, Cigarettes, Cigars, Smoking Tobacco, and E-Cigarettes.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use annual financial reports of the market-leading companies and industry associations, trade data, national statistical office data, third-party studies and reports, survey results from our primary research (e.g., the Statista Consumer Insights Global Survey), as well as performance factors. In addition, we use relevant key market indicators and data from country-specific associations, such as smoking rates, consumer spending, and consumer price index. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques, such as exponential trend smoothing and regression analysis. The selection of forecasting techniques is based on the behavior of the relevant market.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development). Survey data is reweighted for representativeness.