Published Date : Jan 12, 2016
Tobacco is majorly utilized in making cigarettes, cigar, and smoking, etc. In addition, it is also utilized in manufacturing bidis and snuff. Tobacco consumption has increased globally in the times of economic slowdown owing to foreclosures, the stress of layoffs, and stock market downfall owing to which a number of people choose smoking to relief stress. Although, the recovery of economic conditions lessened smoking as stress was eased amongst developed nations. Still, as per the World Health Organization, the development in smoking rates, especially in the developing nations, have surpassed the smoking declines within emerged nations. These factors may fuel the growth of the market for tobacco products.
In 2013, almost 5.7 trillion cigarettes had been consumed which came down to 1.4% in 2012 having slower growth within China and this is why it was difficult to compensate for ongoing declines within Rest of the World (RoW).
Hence, the major challenge for the tobacco industry is of managing volume declines and to maintain meaningful value growth with developing the coming generation tobacco or nicotine products.