Amid the Covid-19 crisis, the global market for tobacco estimated at $845.1 billion in the year 2020, is projected to reach a revised value of $1.1 trillion by 2027, according to a new report published by Research and Markets. This translates into a compound annual growth rate (CAGR) of 3.2 percent.
Cigarettes are projected to record a 3.1 percent CAGR and reach $734.4 billion by 2027. After an early analysis of the business implications of the pandemic and its induced economic crisis, growth in the smokeless segment is readjusted to a revised 3.1 percent CAGR for the next seven years.
The U.S. tobacco market is estimated at $228.8 billion in the year 2020. China, the world`s second largest economy, is forecast to reach a projected market size of $203.5 billion by the year 2027 trailing a CAGR of 5 percent over the analysis period.
Among the other noteworthy markets are Japan and Canada, forecast to grow at 2 percent and 2.5 percent respectively over the 2020-2027 period. Germany is forecast to grow at approximately 2.4 percent CAGR.
In the cigars & cigarillos segment, Canada, Japan, China, Europe and the U.S. will drive the 3.1 percent CAGR estimated for this segment. These markets accounting for a combined value of $57.2 billion in the year 2020 will reach a projected size of $70.8 billion by the close of the analysis period. China will remain among the fastest growing markets in this cluster.
Led by countries such as Australia, India, and South Korea, the market in Asia-Pacific is forecast to reach $135.1 billion by the year 2027, while Latin America will expand at a 3.5 percent CAGR through the analysis period.