Blowing smoke: The industry will gradually decline as demand for cigarettes continues to fall

The Cigarette and Tobacco Manufacturing industry in Canada has flourished despite having to contend with tough regulatory pressures, taxation and declining cigarette consumption. The government has increased excise taxes several times over the past five years in an effort to curb smoking by forcing industry operators to increase prices to salvage profitability. This strategy has been successful since cigarette consumption has declined during the period to the detriment of the industry. The introduction of innovative smoking products has fuelled much of the industry's revenue more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23

Industry Threats & Opportunities

  • The introduction of innovative smoking products has fuelled much of the industry’s revenue growth
  • Operators have focused on alternative tobacco products, such as e-cigarettes
  • The level of excise tax increases will be critical for industry performance
  • Industry Report - Starting a New Business Chapter

    The barriers to entry for the Cigarette and Tobacco Manufacturing industry in Canada are very high. This is partly due to the number of laws and regulations governing the industry. Overall, the manufacture, sale and use of tobacco products are subject to more than 200 laws and regulations throughout Canada enacted at the federal, provincial and municipal levels. The Tobacco Act provides the federal government with the authority to enforce these laws. To manufacture tobacco products, industry operators must first obtain a tobacco licence. Manufacturers that operate vertically integrated manufacturing operations must also obtain licences and permits for the distribution of products. Fin...purchase to read more.

    Additional Insights for the Cigarette & Tobacco Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Cigarette & Tobacco Manufacturing Industry are

  • Economies of scale
  • Ability to effectively change community behaviour
  • Marketing of differentiated products
  • IBISWorld analysts also discuss how external factors such as Percentage of smokers and World price of tobacco in the Cigarette & Tobacco Manufacturing industry impact industry performance..

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    What's in this report

    What is the Cigarette & Tobacco Manufacturing Industry?

    Companies within this industry stem and redry tobacco, and manufacture cigarettes, cigars, smoking and chewing tobacco and reconstituted tobacco. Industry operators acquire raw materials from tobacco growers, and paper and fibre manufacturers. They then process these materials into tobacco products that are sold to wholesalers and retailers.

    Industry Products
  • Premium cigarette brands
  • Deep discount cigarette brands
  • Mainstream and discount cigarette brands
  • Other tobacco products
  • Tobacco stemming and redrying
  • Industry Activities
  • Tobacco stemming and redrying
  • Manufacturing cigarettes
  • Manufacturing cigars
  • Manufacturing fine-cut tobacco
  • Manufacturing snuff and snus
  • Manufacturing other tobacco products
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Percentage of smokers
  • World price of tobacco
  • Canadian effective exchange rate index
  • Consumer spending

  • Current Performance
  • Tobacco profit and industry structure
  • Tobacco trends
  • Tobacco trade
  • Chart: Revenue Growth

  • Industry Outlook
  • Consolidation and operational efficiencies
  • Tobacco trends
  • Tobacco trade
  • Table: Cigarette & Tobacco Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Cigarette & Tobacco Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Supermarkets & Grocery Stores in Canada
  • Convenience Stores in Canada
  • Beer, Wine & Liquor Stores in Canada
  • Pharmacies & Drug Stores in Canada
  • Gas Stations with Convenience Stores in Canada
  • Small Specialty Retail Stores in Canada
  • Vending Machine Operators in Canada
  • Bars & Nightclubs in Canada

  • Key Selling Industries
  • Cigarette & Tobacco Manufacturing in Canada

  • Products & Services
  • Mainstream and discount cigarette brands
  • Deep discount cigarette brands
  • Premium cigarette brands
  • Tobacco stemming and redrying
  • Other tobacco products
  • Chart: Cigarette & Tobacco Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Wholesalers
  • Convenience stores
  • Supermarkets and grocery stores
  • Exports
  • Other
  • Chart: Major Market Segmentation for the Cigarette & Tobacco Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Cigarette & Tobacco Manufacturing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Cigarette & Tobacco Manufacturing Industry

  • Industry Globalization
    Rothmans, Benson & Hedges, JTI-Macdonald Corp.,
  • Table: Rothmans, Benson & Hedges - financial performance
  • Table: JTI-Macdonald Corp. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Cigarette & Tobacco Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Cigarette & Tobacco Manufacturing Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)
  • Percentage of smokers (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Chewing Tobacco
  • Shredded strips of tobacco leaf, often sweetened, that are consumed by placing a portion of the tobacco between the cheek and gum or upper lip teeth and chewing.
  • Cigarillos
  • Long cigars, slightly thicker than a cigarette but thinner than a traditional cigar. Cigarillos are consumed orally just like cigars.
  • Electronic Cigarette
  • A battery powered personal vaporizer or electronic nicotine delivery system that produces a smoke like nicotine aerosol consumed in the lungs.
  • Fine-Cut Tobacco
  • Finely cut strands of tobacco also known as shag, rolling tobacco, loose tobacco, baccy or rollies. Fine-cut tobacco is used to make hand-rolled cigarettes using rolling papers.
  • Snuff
  • Fine-ground tobacco that is inhaled or sniffed into the nose.
  • Snus
  • A moist powder tobacco product that is placed under the lip for extended periods of time.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Cigarette & Tobacco Manufacturing market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Cigarette & Tobacco Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Cigarette & Tobacco Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Cigarette & Tobacco Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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