The Tobacconists industry has weathered increased taxation and regulatory scrutiny to grow at a steady rate over the past five years. Despite a steady decrease in cigarette consumption levels and increase in retail prices, industry operators have experienced both sales and revenue growth in the industry on account of better sales experienced in premium products as well as the explosion of sales in e-cigarettes and other similar vaping products. Less than 80.0% of operators in the industry are small owner-operators or nonemployers that keep a strict watch on costs and are more economical when it comes to expanding operations. Therefore, on account of industry operators being cautious in expanding store counts, the number of establishments is expected to increase. However, multiunit companies have experienced stronger gains and have expanded operations. This has led to both employees and wages increasing over the five years to 2019. Historically high state and federal excise taxes along with increased regulatory scrutiny on the sale and consumption of tobacco products will lead to a much lower industry growth rate over the next five years. Furthermore, industry operators will seek to consolidate their operations and profitability will be compromised.
This industry retails various types of tobacco, cigars, pipes and accoutrements such as ashtrays, humidors and cigar cutters to final consumers.
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.
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