Cigarette & Tobacco Products Wholesaling in the US
The Cigarette and Tobacco Products Wholesaling industry has sustained sales over the past five years despite growing regulatory, economic and operational challenges. Meanwhile, cigarette consumption levels have continued to decline steadily, further reducing demand for the industry's largest product segment. Nonetheless, falling demand for cigarettes during this five-year period has been more than offset by sustained demand for noncigarette tobacco products such as snuff, cigarillos, e-cigarettes and premium cigars. An increasingly stringent regulatory environment and rising social stigma against smoking and public tobacco use will further reduce consumption of all tobacco products, which will ultimately hurt industry revenue. In addition, anticipated future hikes in federal and state excise taxes will likely incentivize tax evasion and the smuggling of cigarettes across state lines, further hurting legitimate tobacco distributors and manufacturers.
Companies within this industry acquire packaged cigarettes and other tobacco products from manufacturers and sell the goods to retailers such as convenience stores, supermarkets, specialized tobacco stores, street vendors or internet tobacco retailers. They may also sell to other wholesalers. The sales and distribution offices of tobacco product manufacturers are included in this industry.
This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.