Tobacco Industry Competing
in Global Market
◦ Submitted by: Muhammad Abdul Basit
◦ Submitted to: Dr. Asma Fiaz
◦ Date: 5 May 2025
Introduction
◦ Global control by large manufacturers
◦ 1.5 million workers; major centers: China, India, Indonesia
◦ 1.3 billion users (2024), 80% in low-/middle-income countries
◦ 8+ million deaths/year due to tobacco use
Global Tobacco Market
Overview
◦ 2025 expected revenue: US$988.4 billion
◦ CAGR 2025–2030: 2.57%
◦ China: largest revenue contributor (US$303 billion)
◦ Online sales: 20.9% of total market revenue
Global Market Leaders
◦ China National Tobacco Corporation (CNTC): 97% Chinese
market
◦ Philip Morris International (PMI): Marlboro, IQOS, Zyn
◦ British American Tobacco (BAT): Vuse, Glo, Velo
Market Segmentation
◦ Combustible Products: Cigarettes, cigars
◦ Smokeless: Chewing tobacco, snuff
◦ HTPs: Heated tobacco devices
◦ E-cigarettes/Vapes: Vapor-based nicotine delivery
Trade and Export Dynamics
◦ Key exporters: China, U.S., EU
◦ Trade governed by tariffs, regulations, public health policies
◦ WTO and regional agreements influence trade
Competitive Strategies
◦ PMI: Shift to smokeless future
◦ BAT: Focus on “New Categories” (e.g., Velo, Vuse, Glo)
◦ Expansion into Africa, Asia for growth potential
Regulatory Challenges
◦ WHO FCTC framework: global treaty
◦ Key Articles:
◦ Article 6 – Taxation
◦ Article 11 – Labeling
◦ Article 13 – Ad bans
Global Health Advocacy
◦ Campaign for Tobacco-Free Kids
◦ “World No Tobacco Day” – May 31
◦ CDC, WHO, Global Tobacco Control databases support policy
Emerging Trends & Outlook
◦ Decline in traditional cigarette use
◦ Growth in ZYN, Glo, Velo
◦ Sustainability and corporate responsibility
Conclusion
◦ Industry balance: Public health vs. profits
◦ Future growth: Smoke-free innovations
◦ Urgent need for strict regulation and sustainability
References
◦ WHO Tobacco Factsheet:
who.int/news-room/fact-sheets/detail/tobacco
◦ Statista Tobacco Outlook:
statista.com/outlook/hmo/tobacco/worldwide
◦ WTO Trade Review: wto.org/.../wts2022chapter04_e.pdf
◦ PMI Progress: pmi.com/our-progress
◦ BAT Transformation: bat.com
◦ More listed in report...
Tobacco Market
Year
Growth Table
Market Size (USD Bn) CAGR (%)
2024 964.99 2.55
2025 988.4 2.57
2030 1,117.77 2.50
Company Revenue
Comparison
Company
(2025)
Revenue ($m) Profit Margin (%)
China National 231,402 23.0
Tobacco
Philip Morris 93,203 15.0
International
British American 74,707 5.4
Tobacco
Market Volume Volume
Product Type
by Product
(USD Bn)
Cigarettes 872.8
Others ~115.6
Regional MarketMarket
Region
Share
Share (%)
China 37.8
Asia-Pacific 30+
Europe 25.3
S.E. Asia 26.5