The global tobacco market size is expected to reach $1.07 billion by 2028, according to a new report by Grand View Research. It is expected to expand at a compound annual growth rate (CAGR) of 1.8 percent from 2021 to 2028.
According to the authors, the shifting preference among youth and the working-class population toward tobacco products, including cigars and next-generation products, is crucial for the market growth. Moreover, growing student spending on tobacco products across the globe is expected to offer new avenues for the growth of the market over the forecast period.
By product, the cigarettes segment held the largest share of more than 75 percent in 2020, according to the report. Easy access to cigarettes at economical prices among the consumers through retail shops is expected to drive this product segment in the near future.
The next-generation products segment is anticipated to be the fastest-growing segment with a CAGR of 2.8 percent from 2021 to 2028. The growing acceptance of next-generation products, including e-cigarettes, in developed economies of North America and Europe is expected to remain a favorable factor for the segment growth.
The Middle East and Africa is anticipated to be the fastest-growing regional market with a CAGR of 3 percent from 2021 to 2028, owing to the increasing demand for premium and next-generation tobacco products with enhanced flavors.