Tobacco Products Market Research Reports & Industry Analysis

The primary responsibility of the tobacco products industry is the manufacturing of chewing tobacco, cigars, reconstituted tobacco, cigarettes, and smoking tobacco. Basic manufacturing material is typically obtained from tobacco stemmers, growers, paper and fiber manufacturers, and re-driers. Raw materials are used and ultimately transformed into tobacco products. Wholesalers and retailers in the tobacco market then purchase the final product for resale. Consumption within the tobacco market consists of cigarettes, cigars, snuff, and chewing tobacco. Cigarettes are the most profitable consumer good in the market. Tobacco is a crop that must be planted and grown yearly. To harvest the tobacco plant the tobacco leaves are cut either by hand or by machine. The moisture of the leaves are then cured and extracted for overall flavor enhancement. Two types of curing are typically used: flue-curing and air-curing. Air-curing is a two month process, while flue-curing can typically be accomplished within a week. After the curing process occurs, the tobacco leaves are cleaned and sent to processing plants where they are de-steamed in a process known as threshing. After this occurs, the tobacco leaves are then dried out again and packaged into boxes or vats, and finally, aged. The aging process can take up to two years. Consumer purchasing activity and consumer awareness of the negative health connotations involved with tobacco products, drive demand in the tobacco products industry. Larger tobacco companies typically dominate manufacturing, as they are able to provide a broad selection of products to consumers. Smaller companies can compete however by offering product with extensive discounts, as well as engaging in creative branding and packaging, and offering specialty product niches, such as additive-free cigarettes. These Independent manufacturers focus on creating efficient marketing strategies for product promotion and to increase profit.
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Tobacco Products Industry Research & Market Reports

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