Tobacco Market Poised for 4.6% Annual Growth

Written By
Julija A.
May 15,2024

So much for a smoke-free future. Analysts at Research and Markets say the tobacco industry is poised for substantial growth through 2026 despite vigorous anti-smoking campaigns, social pressure, and legal measures undertaken around the world. R&M’s Tobacco Market - Global Market Outlook (2017-2026) estimates that worldwide tobacco revenue will reach $1,012 billion by 2026. This figure represents a 4.6% compound annual growth rate over 2017’s $664 million.

The industry is growing along with an explosion of new products such as electronic, flavored, long, skinny, and colored cigarettes aimed at attracting new customers and suiting the widest possible range of preferences. 

Another boost to the market comes in the form of hookah tobacco, which is experiencing rapid growth  in popularity.

Tobacco’s future seems assured, but forces are arrayed against the industry.

Traditional nicotine replacement therapies such as gum, patches, and lozenges intended to relieve smokers from craving tobacco are on the rise as people take addiction more seriously than ever before. 

Many groups are educating the public about the health issues caused by tobacco. This has the effect of discouraging smoking and depressing sales. Cancers, cardiovascular diseases, pulmonary diseases - all undeniably caused by tobacco - are the main factor limiting market growth. In addition, marketing bans and smoke-free public spaces are making smoking less popular.  

The R&M survey analyzed the projected revenue of industry goliaths like Hongyunhonghe, Philip Morris, and British American Tobacco. It shows that people are far from abandoning the smoking habit even as the annual tobacco-related death toll continues to rise.

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Albert Einstein is said to have identified compound interest as mankind’s greatest invention. That story’s probably apocryphal, but it conveys a deep truth about the power of fiscal policy to change the world along with our daily lives. Civilization became possible only when Sumerians of the Bronze Age invented money. Today, economic issues influence every aspect of daily life. My job at Fortunly is an opportunity to analyze government policies and banking practices, sharing the results of my research in articles that can help you make better, smarter decisions for yourself and your family.

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