Global Organic Tobacco Market Consumer Trends, Product Types, Applications and End-use, Market Revenue Size & Shares, Global Market Growth Rate, and Forecast till 2029

Global Organic Tobacco Market Overview:

“The global Organic Tobacco Market size is expected to be worth around US$ xx Billion by 2021 from US$ X.xx million in 2031, growing at a CAGR of X.x% during the forecast period 2021 to 2031.”

Introduction and Dynamics:

The term ‘organic’ literally means something that is natural and does not contain or has been treated or exposed to any synthetic or chemical or unnaturally formed substance or soil etc. Organic can however mean – for plants or other consumables grown or cultivated – a plant or crop that has been grown in soil that has only been treated with federally approved, non-synthetic pesticides and fertilizers.

With regard to tobacco however, the term ‘organic’ does not apply, as by-products are regulated within the tobacco industry. The term however, when associated with tobacco products, creates a sense of better safety in consuming ‘natural products’. In addition, organic tobacco products can cost relatively more than regular products that are not labeled ‘organic.

Among some of the key factors driving demand for organic tobacco products include shift towards products that do not cause as much damage to health. With tobacco, there are no known benefits and products are required to be accompanied with statutory warnings as well as an image of potential damage such products can cause.

Tobacco is known to be a major cause of cardiovascular and heart diseases, cancer, lung disease, as well as an assorted list of other potential diseases, besides dental issues. An increasing number of consumers are either kicking the habit of smoking or consuming tobacco products, reducing smoking, or opting for substitutes and medication to avoid potential health-related issues. With ‘organic’ being the key word currently, spending by tobacco farmers has been increasing on shifting to more organic farming techniques and approaches to stay ahead in the highly competitive industry and market.

Organic farming aids in cultivation of better quality and yield volumes as compared to conventional cultivation technologies and approaches. Organic tobacco is considered and permitted under non-smoking and smoking end uses and applications in various countries. Organic rolled tobacco cigarettes have been gaining popularity and preference among a sizable consumer base in the recent past.

Rising health awareness about potential health hazards and conditions is among other factors driving market growth. An increasing number of cigar smokers have also been shifting to organic rolled tobacco cigars as these products are considered or believed to be less harmful compared to conventionally grown and cultivated tobacco cigars. Many smokers are shifting from conventional tobacco products to organic tobacco products in efforts to gradually cease smoking or consuming tobacco products.

Segment Analysis:

Among the application segments, the smoking segment is the most lucrative segment in terms of revenue share contribution to the global organic tobacco market. This segment is projected to maintain its dominance over the forecast period. The trend of ‘roll-your-own smoke’ has been re-gaining popularity, and many consumers, of varying age groups, are driven or motivated by the perceived romantic impression, or old-fashioned, but macho image rolling cigarettes carries along with it.

Regional Analysis:

The market in North America is expected to maintain its dominances, accounting for more than 35% of global revenues in 2019. Spending has been increasing on production and introduction of organic products with less harmful effects to consumers. In the past decade, there have been numerous developments in the tobacco products market, especially with regard to smoking products.

Better quality skins or papers, filters, and production equipment has been introduced and is currently in use. An increasing number of companies are focusing on optimizing the natural and organic product trend and shift in preference for more natural products in the market. Companies are focusing on mergers, strategic agreements, and collaborations with players operating in other regions and countries to maximize on the current demand. In October 2017, Japan Tobacco Inc.

launched a new tobacco product –approved by the United States Department of Agriculture (USDA) – under brand name ‘Natural American Spirit Organic Leaf’, which the company is marketing as additive-free.

The market in Asia Pacific is expected to remain among the top consumers of tobacco products over the forecast period. Demand and consumption continues to remain significantly high in countries including China, India, and Japan. Consumption is projected to increase owing to increasing population, per-capita income and spending, high visibility and availability of products and a range of options to choose from.

Global Organic Tobacco Market Segmentation:

Segmentation by Product Type:

• Flue-cured
• Sun Cured
• Fired Cured

Segmentation by Application:

• Smoking
• Smokeless

Segmentation by Region:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa