China Tobacco Product Market Research Report, 2028

China has a centuries-long history of tobacco use, making it one of the world's biggest consumers of tobacco products. The substantial tobacco use in the nation is propelled by a confluence of historical, cultural, and economic elements. China National Tobacco Corporation, which is state-owned and runs the country's tobacco business, provides a significant amount of funding for the government. Because of this particular arrangement, the government and the tobacco business have a complicated relationship, with worries over smoking's negative health effects frequently outweighing the industry's financial gains. According to the WHO, China is the largest producer and consumer of tobacco in the world. There are more than 300 million smokers in China, nearly one-third of the world's total. More than half of adult men are current tobacco smokers. About one in every three cigarettes smoked in the world is smoked in China. In addition, over 700 million non-smokers in China, including about 180 million children, are exposed to second-hand smoke (SHS) at least once a day in a typical week. Exposure to SHS causes 100,000 deaths annually. In particular, smoking cigarettes is very common, and exchanging smokes as a gesture of hospitality and gift-giving is not unusual. To add to the high rates of consumption, cigarettes' low cost in China has made them available to a large segment of the populace. According to the research report "China Tobacco Product Market Overview, 2028," published by Actual Research, the market is anticipated to add more than USD 37 Billion from 2023 to 2028. There has been a remarkable upsurge in growth and a major shift of the tobacco product market in China. Numerous factors, such as the launch of new, emerging items that have drawn the interest of the younger population, can be ascribed to this growth. Electronic cigarettes, or e-cigarettes, are among the most well-known new goods on the market. People are drawn to them because they believe they pose less of a health risk than regular cigarettes. Due to their adjustable features and wide range of flavors, e-cigarettes are a popular choice among young customers looking for a new and possibly safer method to get their nicotine fix. In addition, heated tobacco products—such as IQOS—have become popular because they mimic the taste of tobacco without the drawbacks of burning. These goods are particularly appealing to the younger generation that is health-conscious and tech-savvy because they are frequently perceived as a compromise between regular cigarettes and e-cigarettes. Snus and snuff, two smokeless tobacco products, have also found a place in the market in addition to these substitutes. Those searching for a less obtrusive and socially acceptable manner to use tobacco may find these smoke-free, discretely usable items interesting. Particularly snus appeals to younger customers since it comes in a range of flavors and nicotine levels.

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The Chinese tobacco products market is characterized by a clear segmentation based on product types, encompassing categories such as Cigarettes, Smokeless Tobacco, Cigar and Cigarillos, Next Generation Products, and Kretek. Historically, Cigarettes have held a dominant position in the market, reflecting the long-standing preference for traditional smoking in China. Following Cigarettes, Smokeless Tobacco and Cigar and Cigarillos also maintain significant market shares, catering to diverse consumer preferences. Kretek, which includes clove-flavored cigarettes, holds a notable market size in China, offering a unique smoking experience. One noteworthy trend in the Chinese tobacco market is the growing anticipation of the growth of Next Generation Products. These products, which often include electronic cigarettes, heated tobacco devices, and other innovative alternatives, are gaining attention as consumers increasingly seek alternatives that may be less harmful than traditional smoking. The rise of Next Generation Products reflects a broader global shift towards harm reduction and a heightened awareness of the health risks associated with traditional smoking. As regulatory environments and consumer preferences continue to evolve, it is expected that Next Generation Products will play a more prominent role in the Chinese tobacco market in the coming years. The tobacco market is split up into several distinct divisions, and a variety of retail channels are used to distribute tobacco goods. These channels include the internet, convenience stores, specialty shops, hypermarkets, and supermarkets. Because they supply a wide range of tobacco products, can satisfy different client tastes, and provide an expert and specialized shopping atmosphere, specialty stores have long dominated this business. In terms of accessibility, hypermarkets and supermarkets follow closely behind, as tobacco goods are easily found among other everyday essentials, serving a diverse clientele. Convenience stores have also had a significant impact, offering customers seeking convenience the advantages of proximity and extended hours of operation. However, the growth of online sales is a notable and more significant development in the tobacco sector. This increase is in accordance with broader e-commerce developments and changing consumer expectations, particularly the need for the privacy and ease of online tobacco product sales. The predicted rises in online sales and the regulatory environments’ adaptation to digital commerce are likely to bring about major changes in the near future for the tobacco distribution sector. This development illustrates how consumer behavior changes and the influence of new technologies on product consumption and purchase patterns constantly alter the market. Considered in this report: •Geography: China •Historic year: 2017 •Base year: 2022 •Estimated year: 2023 •Forecast year: 2028

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Kripa Shah

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Aspects covered in this report: •China Tobacco Product market with its value and forecast along with its segments •Various drivers and challenges •On-going trends and developments •Top profiled companies •Strategic recommendation By Product: •Cigarette •Smokeless Tobacco •Cigar and Cigarillos •Next Generation Products •Kretek By Distribution Channel: •Speciality Store •Hypermarket/supermarket •Convenience Stores •Online •Others

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The approach of the report: This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and list out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, and annual reports of companies, analyzing the government-generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers into regional aspects, tier aspects, age groups, and gender. Once we have primary data with us we started verifying the details obtained from secondary sources. Intended audience: This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the Tobacco Product industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.