Summary

Tobacco consumption in North America has a long and complex history deeply ingrained in the region's culture and economy. Stress has indeed been a contributing factor to the use of tobacco products in North America and around the world. Many individuals turn to tobacco as a coping mechanism to deal with stress, anxiety, and other emotional challenges. The Food and Drug Administration (FDA) plays a pivotal role in this by regulating the manufacturing, marketing, and distribution of tobacco products. In 2009, the Family Smoking Prevention and Tobacco Control Act gave the FDA the authority to oversee the tobacco industry, aiming to reduce the harm caused by tobacco. In the tobacco industry, several major companies operate in North America, despite a gradual decline in cigarette consumption. The Altria Group, Inc., formerly known as Philip Morris, is one of the largest tobacco companies in the region. British American Tobacco, with its subsidiary Reynolds American Inc., also maintains a significant presence. These companies have diversified their portfolios to include smokeless tobacco, e-cigarettes, and other reduced-risk products, reflecting changing consumer preferences and regulatory pressures. The cigar industry in North America encompasses a mix of premium and non-premium brands, many of which are produced in various countries, including the Dominican Republic, Nicaragua, Honduras, and the United States. E-cigarette use among young people in North America has raised concerns. Vaping has been particularly popular among teenagers and young adults, leading to worries about nicotine addiction and the potential for a new generation of tobacco users. Public health officials have been working to curb youth e-cigarette use through educational campaigns and regulatory measures. Whereas the numerous associations and organizations actively campaign against tobacco use and advocate for public health. Prominent among these is the American Cancer Society, which has been instrumental in anti-smoking campaigns and support for smokers seeking to quit. Additionally, the American Lung Association, the Campaign for Tobacco-Free Kids, and many state-level organizations focus on tobacco control and smoking cessation efforts.

According to the research report, “North America Tobacco Product Market Outlook, 2028” published by Bonafide Research, the market was valued at more than USD 130 Billion in 2022. In North America, the tobacco products market has witnessed a significant transformation in recent years, driven by the emergence of alternative products such as e-cigarettes and the changing preferences of consumers, with a particular draw for younger generations. This shift has profound implications for the tobacco industry, public health, and regulatory authorities. One of the most observed trends in the North American tobacco market is the growing popularity of e-cigarettes. These electronic devices, often marketed as a less harmful alternative to traditional smoking, have captured the imagination of a new generation of consumers. Youngsters are particularly attracted to e-cigarettes due to their sleek design, portability, and a wide array of enticing flavours, making them seemingly more appealing and socially acceptable than conventional tobacco products. The tech-savvy nature of e-cigarettes also aligns with the preferences of younger consumers, who are drawn to innovation and convenience. Flavoured cigarettes, in various enticing flavours, have attracted a younger and more diverse customer base, making smoking more appealing to a generation that might have otherwise been deterred by the taste of traditional tobacco.

Based on the geography, the market is segmented into countries including United States, Canada, and Mexico. The fourth-largest tobacco-producing nation in the world is the United States. To protect the public's health, the U.S. Food and Drug Administration (FDA) regulate the tobacco industry's marketing, promotion, and distribution. The United States' smoking rates reached a low point in 2022, with 1 in 9 persons stating they were smokers, according to government survey data released in April 2023. Canada's tobacco production and usage have changed dramatically over time as a result of shifting governmental legislation, public health concerns, and societal views. The cigarette, made of finely chopped or shredded tobacco leaves enclosed in a paper cylinder, is the most popular and well-known tobacco product. In certain places, chewing tobacco and other smokeless tobacco products, like snuff, are also well-liked. Mexico has a long history of tobacco cultivation, dating back to pre-Columbian times when indigenous peoples grew and used tobacco for religious and medicinal purposes. Today, the industry is primarily centred on the production of cigarettes, cigars, and other tobacco products.

The tobacco market in the North America region showcases a distinctive demarcation among various product categories, each drawing unique consumer preferences and consumption patterns. Historically, traditional cigarettes have stood as the unequivocal powerhouse in this market, commanding a substantial share of tobacco product consumption. Cigarette smoking, with its deeply ingrained cultural and social significance, has long been the primary choice of tobacco use for a large segment of the population. However, the landscape is gradually undergoing a transformation as new trends emerge. Smokeless tobacco and cigars, including cigarillos, have maintained a strong presence, each occupying niche markets that appeal to distinct consumer groups. Smokeless tobacco, such as chewing tobacco and snuff, holds appeal for those seeking alternatives to smoking, while cigars and cigarillos attract aficionados valuing the nuances of flavor and craftsmanship. Innovative alternatives like electronic cigarettes (e-cigarettes) and heated tobacco devices have garnered attention, especially among younger consumers looking for a potentially less harmful and technologically advanced option. These next-generation products offer a broad spectrum of flavors, modern designs, and the perception of reduced risk compared to traditional smoking, marking a significant shift away from combustible tobacco. The evolving landscape underscores the need for regulatory oversight and public health campaigns to address the changing patterns of tobacco consumption.

Tobacco products in the North American market are distributed through a diverse array of retail channels, reflecting the variety of consumer preferences and lifestyles. These distribution channels encompass specialty stores, hypermarkets and supermarkets, convenience stores, online platforms, and various other outlets. Historically, specialty stores have held a dominant position in the market. These specialized tobacco shops offer a wide selection of products, provide personalized customer service, and often attract loyal customers who seek specific brands or unique tobacco experiences. However, the landscape is rapidly evolving, with the online market poised to expand significantly in the coming years. The rise of e-commerce platforms has introduced convenience, an extensive range of product offerings, and competitive pricing. This is particularly appealing to tech-savvy consumers, who appreciate the discreetness and ease of online purchases. As the online market continues to grow, it's likely to challenge the dominance of specialty stores, reshaping the way tobacco products are distributed and purchased in North America. This shift highlights the need for responsible regulation to ensure age verification and the proper sale of tobacco products online, with a primary focus on safeguarding public health as the industry adapts to changing consumer behaviour and preferences. While specialty stores remain a formidable force, the expanding online market signifies a significant transition in the distribution of tobacco products in North America.

Companies covered in this report:
British American Tobacco plc, Scandinavian Tobacco Grou, Imperial Tobacco Group pl, The Japan Tobacco Inc., Altria Group, Inc., Korea Tobacco & Ginseng Corporation (KT&G), Habanos S.A, Swisher International, Inc., Gurkha Cigar Group, Dosal Tobacco Corporation, ITC Limited, Vector Group Ltd, Tabacos Monte Paz

Considered in this report:
• Geography: North America
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report:
• North America Tobacco Product market Outlook with its value and forecast along with its segments
• Country-wise Tobacco Product market analysis
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Country covered in the report:
• United States
• Canada
• Mexico

By Product:
• Cigarette
• Smokeless Tobacco
• Cigar and Cigarillos
• Next Generation Products
• Kretek

By Distribution Channel:
• Speciality Store
• Hypermarket/supermarket
• Convenience Stores
• Online
• Others

The approach of the report:
This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience:
This report can be useful to industry consultants, manufacturers, suppliers, associations, and organisations related to the Tobacco Product industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.



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