The United
States tobacco market was valued at USD99.47 billion in 2022 and is projected
to grow at a CAGR of over 7.95% through 2028 and is anticipated to project
robust growth in the forecast period. The market for tobacco in the United
States is witnessing high demand owing to the various factors such as high
demand from young consumers, rising tobacco consumption in the country due to
launch of new tobacco based products and unique marketing and advertising
tactics by several brands.
United
States Tobacco Market Scope
Tobacco
is a product made from a plant whose leaves have a high concentration of the
addictive chemical nicotine. There are numerous techniques to harvest, mature,
and process tobacco leaves. The end products may be applied to the gums as
dipping and chewing tobacco or breathed as snuff. They may also be smoked in
the form of cigarettes, cigars, and pipes.
United States
Tobacco Market Overview
There
are a number of elements that influence the tobacco market in the United
States, including addiction, marketing and advertising, societal and economic
concerns, and globalization. Since nicotine is so strongly addictive, the
tobacco industry has expanded as a result of the large number of smokers who
continue to purchase and consume tobacco products in spite of acknowledged
health concerns. For instance, according to the US Centers for Disease Control
and Prevention, in the year 2021, around 12.5% of adults smoked cigarettes and
about 1,600 youth try their first cigarette each day in the United States. The
industry has also made significant investments in marketing and advertising to
promote tobacco usage and smoking. Economic factors, such as the manufacturing
sector's significance as an employment sector in some areas, have also aided in
its expansion. For instance, in 2021, tobacco product manufacturing employment
made up one-tenth of one percent of all manufacturing jobs in the US. Finally,
the industry has grown and become more competitive as a result of
globalization. To retain growth, the industry must adapt and move towards goods
like low-nicotine cigarettes due to the major obstacles posed by legislation
and health concerns.
United
States Tobacco Market Drivers
Due to
a number of factors, including the fact that the United States is now the
world's fourth-largest tobacco producer behind China, India, and Brazil and the
increased accessibility of various tobacco products like cigarettes and cigars,
tobacco consumption in the United States is on the rise. Around
54.7 million persons aged 12 or older, as per the information supplied by the
2021 National Survey on Drug Use and Health, consumed tobacco products. In addition, 10.3 million adults
aged 12 or older now smoke cigars, 7.3 million currently used smokeless
tobacco, and 1.8 million currently smoked pipes. As a result, increased
consumption will have a beneficial effect on market expansion. Nearly 40
million adults in the US, according to the US Centers for Disease Control and
Prevention, smoke cigarettes. In the US, every day, approximately 1,600
teenagers begin smoking their first cigarette, and every day, close to 200
teenagers smoke frequently. Additionally, according to 2022 estimates, 4 out of
every 100 middle school pupils and 1 out of every 6 high school students used
tobacco products. Furthermore, the US tobacco business is expanding at an even
faster rate owing to the growing demand for lower nicotine cigarettes.
United
States Tobacco Market Trends
More
individuals are purchasing tobacco products online as the tobacco sector shifts
to internet sales. Convenience, a larger product range, and reduced pricing are
some of the benefits of online purchasing. On their website, for instance,
Cigars International sells a variety of cigars. Additionally, CigsWay offers a
variety of cigarettes from various brands on its website. Customers no longer
need to step out of their homes or travel to a physical store to shop as a
result of online sales. Additionally, internet sales offer a wider variety of
goods, including specialized and hard-to-find things that are not often
available. Prices are usually lower than in physical stores since there are
fewer overhead costs and greater chances for bulk purchasing online. Thus, it
is anticipated that the US tobacco market will expand significantly through
online outlets.
Traditional oral smokeless tobacco
products are widely used and popular in the US. It is simple to consume it in
locations where smoking is not permitted. Smokeless tobacco products are consumed
by 2 in every 100 adults aged 18 or older, representing 5.7 million adults who
consume smokeless tobacco products in the United States. However, there has
been a change in American’s attitude towards using contemporary oral tobacco
products, like nicotine pouches. These goods are thought to be safer than
conventional oral consumables like snus and snuff. These items fall under a
brand-new category and provide consumers with safer, tobacco-free options.
Thus, leading tobacco businesses are making inroads into this well-liked
product category.
United
States Tobacco Market Challenges
Due to
growing consumer awareness of the negative effects of tobacco use, the demand
for tobacco in the United States is predicted to be low. Nearly 16 million
Americans are affected by an illness caused due to smoking, according to
information supplied by the US Centers for Disease Control and Prevention.
Smoking raises the chance of getting rheumatoid arthritis, some eye illnesses,
and immune system problems including TB.
Additionally,
smoking cigarettes causes more than 480,000 fatalities each year in the US,
including more than 41,000 deaths from secondhand smoke exposure. Approximately
1 in 5 fatalities every year result from this, or 1,300 fatalities each day.
Consequently, the US tobacco business is anticipated to witness low demand in
the coming years.
Market
Opportunities
· The demand for premium cigars has been
growing consistently in recent years, and American culture in general is
strongly influenced by cigar smoking. Some of the key factors driving the demand
for cigars in the United States are the desire for high-quality cigars, rising
consumer disposable incomes, and the growing appeal of cigar smoking as a
luxurious lifestyle choice. Marketing has a significant impact on the
popularity of cigar brands in the United States. Businesses are developing unique brand identities that
appeal to consumers and distinguish their products from those of competitors.
Additionally, several tobacco firms provide a variety of premium cigars online. As a result, American tobacco
companies should focus more on the cigar sector. Additionally, businesses can
position themselves for long-term success in this profitable industry by
offering high-quality products that appeal to end users, developing strong
brand identities, and implementing effective marketing strategies.
·
In recent years, internet sales of tobacco
products have significantly increased in the United States. This has been made
possible by the ease of online shopping, the wide range of products available,
the great number of regular and significant discounts, and the attractive
offers made available by online merchants. For instance, Cigars International
has a variety of cigars available on its official website in the US. The
selling of tobacco goods is heavily regulated by the government in the country;
therefore, the businesses must make sure they abide by all applicable laws.
This involves assuring that customers are of legal drinking age and following
packaging and labeling regulations. By delivering a mobile-friendly website,
broader product descriptions, and a variety of payment options, businesses are
expected to make considerable investments in a user-friendly website that is
easy to use and gives a seamless shopping experience.