Press release
Global Organic Tobacco Market : Industry Analysis and Opportunity Assessment, 2019-2026
Press Release – 21 Jan 2019Research and Development News --
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Latest Update "Organic Tobacco Market: Roll-Your-Own Tobacco Segment Anticipated to Register Significant CAGR over the Forecast Period: Global Industry Analysis and Opportunity Assessment, 2016-2026" with Industries Survey | Global Current Growth and Future.
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“Smoking segment is predicted to create more absolute $ opportunity as compared to the smokeless segment”
Organic tobacco is majorly used in smoking products such as cigarettes and RYO and is expected to gain traction over the forecast period. The smoking segment is the most dominating segment in terms of market share as well as CAGR. In 2016, the smoking segment was expected to dominate the global organic tobacco market with more than 80% revenue share. The smoking segment is projected to reach more than US$ 200 Mn by 2026 end, expanding at a CAGR of 7.6% over the forecast period. The segment is anticipated to gain more than 5 BPS between 2016 and 2026 and is anticipated to record total incremental opportunity of more than US$ 100 Mn between 2016 and 2026 which is estimated to represent close to 90% share of the total incremental opportunity between 2016 and 2026. The roll-your-own (RYO) tobacco sub-segment in the smoking segment is expected to expand at a significant CAGR of 8.1% over the forecast period.
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“Rising high disposable income likely to fuel the growth of the smoking segment in the global organic tobacco market”
The smoking segment is driving market growth across the globe as anti-tobacco activists claim that organic cigarettes help smokers quit the habit sooner as compared to conventional cigarettes. As a result, many smokers are switching to organic cigarettes and this is creating a positive impact on the smoking segment of the global organic tobacco market. Rising health consciousness has changed the preference of smokers across the globe. As organic tobacco products are less harmful (as compared to tobacco products), consumers across the globe are shifting towards organic tobacco based products rather than quitting them completely and this is one of the important reasons fuelling the growth of the smoking segment in the global organic tobacco market. An increasing awareness and eventually a rising demand for organic tobacco products is gaining traction in developed countries such as U.S., Canada, Brazil, Spain, Italy, Germany and Japan. This particular factor is boosting growth in the smoking segment of the global organic tobacco market. Organic tobacco products are expensive and therefore less popular in developing countries; however, the rising high disposable income in developed regions is driving the demand for organic cigarettes and roll-your-own tobacco products, which is further boosting the growth of the smoking segment of the global organic tobacco market.
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“Rising use of hookah and water pipes expected to fuel the growth of the smoking segment in the MEA region”
The smoking segment is estimated to gain more than 100 BPS between 2016 and 2026 in Latin America and is expected to increase at a CAGR of 7.6% over the forecast period. Smoking is an attractive segment in terms of market share and CAGR and is expected to retain its dominance throughout the forecast period. The roll-your-own tobacco sub-segment of the smoking segment is anticipated to grow 2.5x by the end of the projected period in Latin America. In Eastern Europe, the smoking segment is projected to hold 90% of the market share by the end of 2026, owing to the ban on chewing and snuff tobacco in Europe. This segment is expected to increase at a CAGR of 6.6% over the forecast period. The segment also remains the most dominating segment in Western Europe in terms of both value and volume over the forecast period, due to increasing regulations on the consumption of smokeless form of tobacco. Roll-your-own tobacco is gaining popularity in the Western Europe organic tobacco market.
Due to an increasing number of smokers in China, the smoking segment is predicted to be the most attractive segment holding a dominant share in the APEJ organic tobacco market. This segment is expected to increase at a CAGR of 6.9% over the forecast period. Rising use of hookah and water pipes in the MEA region is likely to drive the growth of the smoking segment in the region. Smoking is also anticipated to emerge as an attractive segment in terms of market share and CAGR and is expected to show its dominance over the forecast period in the MEA region. Consumption of tobacco across several smoking applications is primarily driving the growth of this segment in the MEA region.
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