Executive Summary

Jul 2019
Consumers cut consumption, whilst prices rise

Tobacco saw an increase in current value terms in 2018. Cigarettes saw a decline in volume sales and a slight increase in current value sales, as US consumers slowly continued to reduce their consumption, whilst producers increased prices to maintain their profits.

Cigarette manufacturers turn their attention towards e-vapour products

Pending FDA regulation, which brings e-vapour products into the FDA’s regulatory purview, will make certification prohibitively expensive for smaller players in this category in future years. As a result, e-vapour products is expected to move from being fragmented to highly consolidated, dominated by major tobacco companies.

Altria Group invests in the future with JUUL, and IQOS release

Philip Morris International, a subsidiary of Altria Group, has announced plans to completely cease the production of cigarettes. Whilst its plan does not have a definite deadline, the company’s 35% stake in JUUL, and its new product IQOS mean a big leap towards updating and ultimately replacing its cigarettes portfolio.

Internet retailing and discounters grow as consumers seek variety and lower cost

Convenience channels continue to dominate cigarettes and e-vapour products. However internet retailing and discounters are filling the gap for consumers with differing preferences.

Regulation means uncertain future for e-vapour products

Cigarettes and smokeless tobacco are expected to continue to see volume declines in the forecast period, although current value sales are expected to continue to grow due to price rises. Heated tobacco products entered the market in 2019, which will ensure high volume and current value growth from a low base.

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Tobacco in the US

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Overview

Discover the latest market trends and uncover sources of future market growth for the Tobacco industry in USA with research from Euromonitor's team of in-country analysts.

Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.

If you're in the Tobacco industry in USA, our research will save you time and money while empowering you to make informed, profitable decisions.

When you purchase this report, you also get the data and the content from these category reports in USA for free:

The Tobacco in USA market research report includes:

  • Analysis of key supply-side and demand trends
  • Detailed segmentation of international and local products
  • Historic volumes and values, company and brand market shares
  • Five year forecasts of market trends and market growth
  • Production, imports by origin, exports by destination
  • Robust and transparent market research methodology, conducted in-country

Our market research reports answer questions such as:

  • What is the market size of Tobacco in USA?
  • What are the major brands in USA?
  • Which sector of the tobacco products market is the largest by value sales in USA?
  • Which sector of the tobacco products market has been growing the fastest, by volume and value, in USA?
  • Which sector is the most heavily taxed in USA?
  • Which companies dominate in the total tobacco market in USA in terms of market share?
  • What is the distribution channel split for the tobacco products market in USA?

Why buy this report?

  • Gain competitive intelligence about market leaders
  • Track key industry trends, opportunities and threats
  • Inform your marketing, brand, strategy and market development, sales and supply functions

This industry report originates from Passport, our Tobacco market research database.

Tobacco in the US

EXECUTIVE SUMMARY

Consumers cut consumption, whilst prices rise
Cigarette manufacturers turn their attention towards e-vapour products
Altria Group invests in the future with JUUL, and IQOS release
Internet retailing and discounters grow as consumers seek variety and lower cost
Regulation means uncertain future for e-vapour products

OPERATING ENVIRONMENT

Legislation
Legislative overview
Summary 1 Legislation Summary at a Glance
Minimum legal smoking age
Smoking prevalence
Tar levels
Health warnings
Plain packaging
Advertising and sponsorship
Advertising through media (television, radio, billboards, consumer press, trade press, cinema, etc)
Advertising through retail points of sale
Sponsorship of sporting/music events
Distribution of tobacco-branded gifts (e.g. cigarette-branded lighters, pens, etc)
Point-of-sale display bans
Smoking in public places
Low ignition propensity (LIP) cigarette regulation
Flavoured tobacco product ban
“Reduced harm”
Vapour products

PRODUCTION/IMPORTS/EXPORTS

MARKET INDICATORS

Table 1 Number of Adult Smokers by Gender 2013-2018

MARKET DATA

Table 2 Sales of Tobacco by Category: Volume 2013-2018
Table 3 Sales of Tobacco by Category: Value 2013-2018
Table 4 Sales of Tobacco by Category: % Volume Growth 2013-2018
Table 5 Sales of Tobacco by Category: % Value Growth 2013-2018
Table 6 Forecast Sales of Tobacco by Category: Volume 2018-2023
Table 7 Forecast Sales of Tobacco by Category: Value 2018-2023
Table 8 Forecast Sales of Tobacco by Category: % Volume Growth 2018-2023
Table 9 Forecast Sales of Tobacco by Category: % Value Growth 2018-2023

SOURCES

Summary 2 Research Sources

Cigars, Cigarillos and Smoking Tobacco in the US

HEADLINES

PROSPECTS

Cigars and cigarillos attract discount-minded smokers
Large cigars faces an uncertain future due to potential regulation
Fine cut and pipe tobacco appeal less than other smoking alternatives

COMPETITIVE LANDSCAPE

Opposition to flavoured tobacco mounts
Swisher attracts with flavour and pricing
Fragmentation in smoking tobacco

CATEGORY DATA

Table 10 Sales of Cigars, Cigarillos and Smoking Tobacco by Category: Volume 2013-2018
Table 11 Sales of Cigars, Cigarillos and Smoking Tobacco by Category: Value 2013-2018
Table 12 Sales of Cigars, Cigarillos and Smoking Tobacco by Category: % Volume Growth 2013-2018
Table 13 Sales of Cigars, Cigarillos and Smoking Tobacco by Category: % Value Growth 2013-2018
Table 14 Sales of Cigars by Size: % Volume 2013-2018
Table 15 Sales of Cigarillos by Price Platform 2013-2018
Table 16 NBO Company Shares of Cigars and Cigarillos: % Volume 2014-2018
Table 17 LBN Brand Shares of Cigars and Cigarillos: % Volume 2015-2018
Table 18 NBO Company Shares of Cigars: % Volume 2014-2018
Table 19 LBN Brand Shares of Cigars: % Volume 2015-2018
Table 20 NBO Company Shares of Cigarillos: % Volume 2014-2018
Table 21 LBN Brand Shares of Cigarillos: % Volume 2015-2018
Table 22 NBO Company Shares of Smoking Tobacco: % Volume 2014-2018
Table 23 LBN Brand Shares of Smoking Tobacco: % Volume 2015-2018
Table 24 NBO Company Shares of Fine Cut Tobacco: % Volume 2014-2018
Table 25 LBN Brand Shares of Fine Cut Tobacco: % Volume 2015-2018
Table 26 Distribution of Cigars and Cigarillos by Format: % Volume 2013-2018
Table 27 Distribution of Smoking Tobacco by Format: % Volume 2013-2018
Table 28 Forecast Sales of Cigars, Cigarillos and Smoking Tobacco by Category: Volume 2018-2023
Table 29 Forecast Sales of Cigars, Cigarillos and Smoking Tobacco by Category: Value 2018-2023
Table 30 Forecast Sales of Cigars, Cigarillos and Smoking Tobacco by Category: % Volume Growth 2018-2023
Table 31 Forecast Sales of Cigars, Cigarillos and Smoking Tobacco by Category: % Value Growth 2018-2023

Smokeless Tobacco, E-Vapour Products and Heated Tobacco in the US

HEADLINES

PROSPECTS

Heated tobacco arrives in the US in 2019
Closed vapour systems dominates e-vapour products due to less variability
Decline in cigarettes drives smokeless tobacco and e-vapour products

COMPETITIVE LANDSCAPE

Altria shifts focus to e-vapour products and smokeless tobacco
Diversification by Altria through acquisition
MRTP proves elusive

CATEGORY INDICATORS

Table 32 Number of Adult Vapers 2013-2018

CATEGORY DATA

Table 33 Sales of Smokeless Tobacco, E-Vapour Products and Heated Tobacco by Category: Volume 2013-2018
Table 34 Sales of Smokeless Tobacco, E-Vapour Products and Heated Tobacco by Category: Value 2013-2018
Table 35 Sales of Smokeless Tobacco, E-Vapour Products and Heated Tobacco by Category: % Volume Growth 2013-2018
Table 36 Sales of Smokeless Tobacco, E-Vapour Products and Heated Tobacco by Category: % Value Growth 2013-2018
Table 37 Sales of E-Liquids by Nicotene Strength: % Value 2018
Table 38 NBO Company Shares of Smokeless Tobacco: % Volume 2014-2018
Table 39 LBN Brand Shares of Smokeless Tobacco: % Volume 2015-2018
Table 40 NBO Company Shares of E-Vapour Products: % Value 2014-2018
Table 41 LBN Brand Shares of E-Vapour Products: % Value 2015-2018
Table 42 Distribution of Smokeless Tobacco by Format: % Volume 2013-2018
Table 43 Distribution of E-Vapour Products by Format: % Value 2013-2018
Table 44 Forecast Sales of Smokeless Tobacco, E-Vapour Products and Heated Tobacco by Category: Volume 2018-2023
Table 45 Forecast Sales of Smokeless Tobacco, E-Vapour Products and Heated Tobacco by Category: Value 2018-2023
Table 46 Forecast Sales of Smokeless Tobacco, E-Vapour Products and Heated Tobacco by Category: % Volume Growth 2018-2023
Table 47 Forecast Sales of Smokeless Tobacco, E-Vapour Products and Heated Tobacco by Category: % Value Growth 2018-2023
Table 48 Forecast Sales of Tobacco Heating Devices: Volume 2018-2023
Table 49 Forecast Sales of Tobacco Heating Devices: Value 2018-2023
Table 50 Forecast Sales of Heated Tobacco: Volume 2018-2023
Table 51 Forecast Sales of Heated Tobacco: Value 2018-2023

Cigarettes in the US

HEADLINES

PROSPECTS

Menthol faces major scrutiny
Economy brands gain appeal
Smoking rates on a steady decline

COMPETITIVE LANDSCAPE

Natural American Spirit stays ahead of the game
Altria Group looks to the future with e-vapour investments
Major manufacturers adopt new strategies

TAXATION AND PRICING

Taxation rates
Summary 3 Taxation and Duty Levies 2013-2018
Average cigarette pack price breakdown
Summary 4 Average Cigarette Pack Price Breakdown: Brand Examples

CATEGORY DATA

Table 52 Sales of Cigarettes: Volume 2013-2018
Table 53 Sales of Cigarettes by Category: Value 2013-2018
Table 54 Sales of Cigarettes: % Volume Growth 2013-2018
Table 55 Sales of Cigarettes by Category: % Value Growth 2013-2018
Table 56 Sales of Cigarettes by Blend: % Volume 2013-2018
Table 57 Sales of Cigarettes by Standard/Menthol/Capsule: % Volume 2013-2018
Table 58 Sales of Cigarettes by Regular/Slim/Superslim/Microslim: % Volume 2013-2018
Table 59 Sales of Cigarettes by Pack Size: % Volume 2013-2018
Table 60 Sales of Cigarettes by Price Band: % Volume 2013-2018
Table 61 NBO Company Shares of Cigarettes: % Volume 2014-2018
Table 62 LBN Brand Shares of Cigarettes: % Volume 2015-2018
Table 63 Sales of Cigarettes by Distribution Format: % Volume 2013-2018
Table 64 Illicit Trade Estimate of Cigarettes: Volume 2013-2018
Table 65 Forecast Sales of Cigarettes: Volume 2018-2023
Table 66 Forecast Sales of Cigarettes by Category: Value 2018-2023
Table 67 Forecast Sales of Cigarettes: % Volume Growth 2018-2023
Table 68 Forecast Sales of Cigarettes by Category: % Value Growth 2018-2023
Table 69 Forecast Sales of Cigarettes by Blend: % Volume 2018-2023
Table 70 Forecast Sales of Cigarettes by Standard/Menthol/Capsule: % Volume 2018-2023
Table 71 Forecast Sales of Cigarettes by Regular/Slim/Superslim/Microslim: % Volume 2018-2023
Table 72 Forecast Sales of Cigarettes by Pack Size: % Volume 2018-2023
Table 73 Forecast Sales of Cigarettes by Price Band: % Volume 2018-2023