Around 5.5 trillion cigarettes are produced globally each year
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Today
The global tobacco industry produces around 5.5 trillion cigarettes a year.
The biggest single market is China, where the industry is state-owned, with some 350 million smokers who account for more than 40 per cent of the global total.
The four biggest international tobacco companies – British American Tobacco, Imperial Tobacco, Japan Tobacco and Phillip Morris International – account for some 45 per cent of the global market, or around three-quarters of the market outside China.
Tobacco companies' global market share
| British American Tobacco | 13% |
| Imperial Tobacco | 5% |
| Japan Tobacco International | 10% |
| Philip Morris International | 15% |
| Others (including Philip Morris USA and our associate companies in the USA and India) | 15% |
Source: Credit Suisse 2011
The trafficking of tobacco products is a serious problem in many countries – meaning that up to 12 per cent of global volume is traded on the black market.
The future
Regulation of the industry continues to increase, including the introduction of plain packaging in Australia, graphic health warnings on packs, tougher restrictions on smoking in enclosed public places and some bans on shops displaying tobacco products at the point of sale.
Excessive regulation often has unintended consequences. Measures such as retail display bans and sudden increases in excise rates can distort competition among tobacco companies and, in some cases, may result in consumers switching to cheaper, illegally trafficked products.
Generally speaking, we think that individual smokers will consume fewer cigarettes each and smaller percentages of populations will smoke. While cigarette sales in developed countries continue to decline year on year, sustained volume growth is widely predicted in emerging markets, driven by population growth and increasing disposable income. As a result, the overall value of the tobacco market continues to grow.
Next-generation products
Quality and innovation will both play an increasing role in delivering market share, as tobacco companies operate in a highly competitive marketplace.
These innovations will include next-generation products: new-style tobacco and nicotine products that employ a range of new technologies. Substantial investments have been made in developing cigarette alternatives, including nicotine inhalation products, electronic cigarettes, aerosol nicotine-delivery systems and products that heat tobacco rather than burn it.
Who We Are 2013
Who We Are is the Group’s corporate brochure. It tells the story of our business and makes known our views on the key issues that affect our industry.
