Global Tobacco Industry

Published on December 14th, 2010 11:35

Global Tobacco Industry sells approximately 6 trillion cigarettes annually. Tobacco industry is one of the highest-concentrated industries across the world, with the major part of international tobacco market being controlled by several corporations. Last year the total value of global tobacco market was approximately $614 billion.

China is the largest cigarette market around the world basing on the consumption per capita, as there are 350 million in the country who smoked more than 2,000 billion cigarettes in 2009, or more than 40% of the total annual consumption. Still, the tobacco industry in China belongs to China National Tobacco Company, a corporation owned by the state.

Global Tobacco Industry

Excluding China, the top-10 of countries, which have the highest number of consumed cigarettes, is comprised of the USA, Indonesia, Russian Federation, India, Turkey, Brazil, Japan, Ukraine, Italy and Korea.

Because of the amount of earnings and scope, tobacco corporations transfer enormous amounts of funds from one area of the world to another. For example, in 2008, approximately $20 billion was generated by tobacco firms outside of the territories where they are based. Excluding China, about a half of the international tobacco market is operated by the four largest public tobacco corporations, in accordance with British American Tobacco report.

The BAT’s report provides the following numbers concerning the market share for the last year:

  • Phillip Morris International (PMI) -16%
  • British American Tobacco (BAT) - 13%
  • Japan Tobacco International (JTI) - 11%
  • Imperial Tobacco - 6%

Philip Morris International is based in Switzerland, BAT and Imperial Tobacco are headquartered in the U.K. and JTI is based in Japan and Switzerland.

Among the tobacco companies which operate chiefly in their home markets there are: Bulgartabak in Bulgaria, Eastern Tobacco in Egypt, Tobacco & Liquor Corp in Taiwan, National Tobacco Corporation in Vietnam and Tobacco Monopoly in Thailand. The major tobacco companies across the US are Altria, Lorillard and Reynolds American.

Basing on the total quantity of cigarettes consumed across the world, the top 5 international cigarette brands are: Marlboro, Winston, Mild Seven, LM and Kent.

Leading tobacco companies

Phillip Morris International, which became a separate company after spinning of from parent company Altria in 2008, is currently the leading private tobacconist in the world. The company employs more than 75,000 people across the globe and owns 7 out of the top-15 best-selling cigarette brands, including the top-selling Marlboro brand. In 2008, PMI reported earnings of approximately $65 billion.

British American Tobacco ranks the second place behind PMI on sale volumes. In 2008, BAT earned more than $50 billion. Its brand portfolio includes such legendary brands as Pall Mall, Viceroy, Dunhill, Lucky Strike and Vogue. More than 70% of BAT sales come from emerging cigarette markets like India and Indonesia.

Japan Tobacco International is the third-leading international tobacco company, with such flagship brands as Mild Seven, Winston, Camel (both outside of the U.S.), Sobranie, LD, Benson & Hedges, and More.

U.K.-based Imperial Tobacco is the fourth-largest tobacco company. Among the brands it sells there are West, Davidoff, Embassy, R1, Gitanes, Lambert & Butler and Prima.

By Joanna Johnson, Staff Writer. Copyright © 2010 All rights reserved.

Related tags: tobacco industry | american tobacco | big tobacco | regular cigarette

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