The global tobacco market was valued at USD729.90 billion in 2020 and is expected to grow at a rate of 3.78% during the forecast period to reach USD908.29 billion by 2026. The global tobacco market is being pushed by population growth as well as economic development, which is increasing consumers’ purchasing power. Tobacco is a plant, the leaves of which are dried and fermented before being used to make tobacco products. Tobacco includes nicotine, a substance that can lead to addiction, which is why so many people struggle to quit smoking. Many other potentially dangerous compounds can be present in tobacco or are formed when it is burned. Adults are the primary users of tobacco, but a growing number of young students are also now contributing to the growing market share. The tobacco products that the companies offer to their customers come in the form of smoke, chew, or sniff tobacco. Cigarettes, cigars, bidis, and kreteks are examples of smoked tobacco products. Some individuals also use a pipe or hookah to smoke loose tobacco (water pipe). Chewing tobacco, snuff, and snus are all chewed tobacco products, with snuff being the only one that can be sniffed.

The global tobacco market is segmented into product type, distribution channel, region, and company. Based on product type, the global tobacco market is categorized into cigarettes, cigars, smoking tobacco, and smokeless tobacco. Among which the cigarettes dominated the global tobacco market with a market share of around 40% in 2020. The basic components of most cigarettes are tobacco, chemical additives, a filter, and paper wrapping. The widespread use of tobacco products is responsible for the cigarette industry’s expansion. The development of small, sleek, and designer cigarette packaging to appeal to women, as well as innovative marketing methods employed by leading businesses to target women by giving them various discount coupons, are predicted to accelerate market growth.

According to the US Food and Drug Administration (FDA), every day, on average, about 1,500 youth aged 12-17 smoke their first cigarette and more than 200 youth aged under 12-17 become daily smokers. Within United States, 4.6 percent of high school students (710,000) and 1.6 percent of middle school students (190,000) currently smoke cigarettes. Although lowering smoking rates in industrialized nations may limit market development as the popularity of e-cigarettes grows, the industry is expected to rise at a healthy rate due to the increased incidence of smoking among youth.

Based on distribution channel, the global tobacco market is divided into convenience stores, specialty stores, supermarkets/hypermarkets, and others (online, counter shops, etc.). Among which the “Specialty Stores” hold a major market share of around 35%, due to the availability of all varieties, flavors, and packaging under one roof. And other distributional channel which include online sales is expected to be the fastest growing due to fast adoption of e-commerce.

In terms of regional analysis, the global tobacco market is divided into North America, Europe, Asia-Pacific, South America, and Middle East & Africa. Among all the regions, Asia-Pacific is the dominant region as China is the world’s largest producer and consumer of tobacco. The Chinese tobacco market is dominated by the government monopoly China National Tobacco Corporation (CNTC), which holds virtually the entire Chinese cigarette market. Nearly 2.4 trillion cigarettes were sold in China in 2018.

The major players operating in the global tobacco market are British American Tobacco p.l.c., PHILIP MORRIS INTERNATIONAL INC., Imperial Brands PLC, Altria Group, Inc., JAPAN TOBACCO INC., PT Gudang Garam Tbk, ITC Limited, KT&G CORPORATION, Swedish Match AB, SCANDINAVIAN TOBACCO GROUP A/S. Major companies are developing advanced techniques and launching next generation products such as tobacco heating system IQOS to stay competitive in the market.

Years considered for this report:
Historical Years: 2016-2019
Base Year: 2020
Estimated Year: 2021
Forecast Period: 2022–2026

Objective of the Study:

  • To analyze the historical growth in the market size of global tobacco market from 2016 to 2020.
  • To estimate and forecast the market size of the global tobacco market from 2021 to 2026 and growth rate until 2026.
  • To classify and forecast the global tobacco market based on the product type, distribution channel, and regional distribution.
  • To examine competitive developments such as expansions, new product launches, mergers & acquisitions, etc., in the global tobacco market.
  • To identify the dominant region or segment in the global tobacco market.
  • To identify drivers and challenges for the global tobacco market.
  • To identify and analyze the profile of leading players operating in the global tobacco market.
  • To identify key sustainable strategies adopted by market players in the global tobacco market.

Key Target Audience:

  • Tobacco manufacturers/ suppliers/ distributors
  • Market research and consulting firms
  • Government bodies such as regulating authorities and policy makers.
  • Organizations, forums, and alliances related to tobacco

The study is useful in providing answers to several critical questions that are important for the industry stakeholders such as manufacturers, suppliers and partners, end users, etc., besides allowing them in strategizing investments and capitalizing on market opportunities.

Report Scope:
In this report, global tobacco market has been segmented into following categories, in addition to the industry trends which have also been detailed below:

  • Global Tobacco Market, By Product Type:
    • Cigarettes
    • Cigars
    • Smoking Tobacco
    • Smokeless Tobacco (Oral Tobacco)
  • Global Tobacco Market, By Distribution Channel:
    • Specialty Stores
    • Convenience Stores
    • Supermarkets/ Hypermarkets
    • Others (Online, Counter shops, etc.)
  • Global Tobacco Market, By Region:


  • China
  • India
  • Japan
  • South Korea
  • Australia

North America

  • United States
  • Mexico
  • Canada


  • Germany
  • United Kingdom
  • France
  • Spain
  • Italy

South America

  • Brazil
  • Colombia
  • Argentina

Middle East & Africa

  • South Africa
  • Saudi Arabia
  • UAE

Competitive Landscape
Company Profiles: Detailed analysis of the major companies present in global tobacco market.
Available Customizations:
With the given market data, TechSci Research offers customizations according to a company’s specific needs. The following customization options are available for the report:
Company Information

  • Detailed analysis and profiling of additional market players (up to five).