United States Tobacco Market - Industry Size, Share, Trends & Forecast 2026

1. 2016 – 2026 UNITED STATES TOBACCO MARKET FORECAST & OPPORTUNITIES www.techsciresearch.com MARKET INTELLIGENCE . CONSULTING

2. Scope of Report Product of Interest (POI): Tobacco Tobacco is the common name of several plants in the genus Nicotiana of the family Solanaceae, and the general term for any product prepared from the cured leaves of these plants. More than 70 species of tobacco are known, but the chief commercial crop is N. tabacum. Market Segmentation Review Period 2016 – 2019 Base Year 2020 Estimated Year 2021 Forecast Period 2022 – 2026 Year Range PRODUCT DISTRIBUTION CHANNEL • Cigarettes • Cigar • Smoking Tobacco • Smokeless Tobacco • Tobacco Shops • Convenience Stores • Supermarket and Hypermarkets • Online Stores • Others • Departmental Stores • Counter shops • Others REGION • South-Region • West-Region • Mid-West-Region • Northeast-Region

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6. RESEARCH METHODOLOGY

7. Research Methodology Market Profiling Data Analysis Data Collection Data Validation Developing List of Respondents Formulating Questionnaire In-depth secondary research was conducted to determine top players in the United States tobacco market, overall market size and segmental market size. The data was scrutinized using MS-Excel, statistical tools and internal proprietary database to obtain qualitative and quantitative insights about the United States tobacco market. Data obtained as a result of primary and secondary research was validated through rigorous triangulation. TechSci conducted interviews with industry experts and industry players for data collection and verification. In order to conduct industry experts’ interviews, TechSci formulated a detailed discussion guide. List of industry players and industry specialists was developed. Actionable Insights Data Filter & Analysis Business Solution Research & Intelligence Data Collection Primary Research Desk Research Company Analysis • Recent Developments • Market Changing Aspects/Dynamics • Government Policies • Conclusion • Market Participants • Key Strengths • Identifying Key Opinion Leaders • Questionnaire Design • In-depth Interviews Primary Research Secondary Research Paid Sources • LinkedIn • TechSci Internal Database • Company Websites • Company Annual Reports • White Paper Study • Financial Reports • Investor Presentations • Regulatory Body • Associations, etc. • Factiva • Hoovers

8. Research Methodology Baseline Methodology Our dedicated team of industry experts has monitored and analyzed various aspects of United States tobacco market. The team has analyzed the outlook of various segments of this market, while considering the major influencing factors such as flavored tobacco products like clove cigarettes and menthol cigars, is fueling this trend, and over the next few years, these factors are projected to drive the market. The study includes market forecasting, which would enable our clients to take better decisions while planning their strategy to achieve sustainability in United States tobacco market. Methodology Followed for Calculation of Market Size: • Market Size by Value: Market size, in terms of value, for the year 2020 was calculated based on information collected through exhaustive secondary research and primary surveys, with various key opinion leaders/stakeholders, such as tobacco companies, suppliers, channel partners, end User, industry experts, and other industry participants. • The team interviewed more than 40 – 50 tobacco companies, suppliers, 180 – 200 end user, 15 – 20 industry experts and other value chain stakeholders in the United States tobacco market to obtain the overall market size from 2016 to 2020, which was validated by the Delphi technique. Taking standard deviation into consideration, the market size was averaged out, to arrive at the market size data during 2016-2020.

9. Research Methodology • Respondents were asked about the current and future market growth rates, market shares by product, by distribution channel, by company and by region. Removing the outlier responses, the geometric mean of growth estimates and supplier wise revenue shares generated across various segments were considered, to arrive at the final revenue shares. Revenue shares generated across various segments were further triangulated from other stakeholders. Methodology Followed for Calculation of Market Shares: • Market shares by product, by distribution channel, by company and by region were calculated based on the responses received through primary surveys with industry experts, in which the respondents were asked about the market shares or revenue generated from various segments of tobacco market. The final shares were calculated by taking the geometric mean of the responses gathered from key opinion leaders after eliminating the outliers. Methodology Followed for Forecasting: • TechSci Research performed periodical checks on data collected through the surveys with logic checks and analyzed the survey results in SPSS/Tableau Software. • Data triangulation techniques were applied to fill the gaps and to present a more meaningful picture of the market. To forecast United States tobacco market, TechSci Research used various forecast techniques such as: Moving Average Time Series Analysis Regression Analysis Econometric and Judgmental Analysis

10. Research Methodology TechSci Research used its own forecast tool, which is based on the growth of various allied industries in respective regions. TechSci Research also used the impact analysis during short, medium and long term period to estimate the demand and to reach accurate market numbers. It should be noted that the figures compiled are only for the organized market including market share data.

11. Industry Brief Factors like varieties of premium tobacco products such as flavored, long and skinny, and e-cigarettes by the manufacturers are expected to drive the United States tobacco market during the forecast period. According to TechSci Research report, “United States Tobacco Market By Product (Cigarettes, Cigar, Smoking Tobacco, Smokeless Tobacco), By Distribution Channel (Tobacco Shops, Convenience Stores, Supermarket and Hypermarkets, Online Stores, Others (Departmental Stores, Counter shops etc.)), By Region, By Top 10 Leading States, Competition, Forecast & Opportunities, 2026”, the United States tobacco market grew to approximately USD90 billion in 2020 and it is further anticipated to grow with a CAGR of 4.47% by 2026F. Tobacco refers to any Nicotiana plant (especially Nicotiana tabacum), native to tropical America and widely farmed for its leaves, which are dried and processed for use in pipes, cigarettes, and cigars. It is also chopped into chewing tobacco, ground into snuff or dipping tobacco, and used in a variety of other less popular formulations. Tobacco has evolved into an important component of the socio-cultural environment over time, and this is one of the tobacco market opportunities that will aid in the market's growth and development. Increased consumption is caused by a faster rate of income growth, which compensates for the rising cigarette prices. Furthermore, societal forces such as peer pressure contribute to an increase in tobacco product demand. These are important reasons and tobacco market trends that are propelling the market forward. The COVID-19 pandemic has caused chaos in the tobacco business. The tobacco industry experienced challenges due to mismanagement of operations, disturbance within the supply chains, business model recreation, digitization, and other unforeseen consequences. Two-thirds of tobacco users (67%) were ignorant of the link between tobacco and COVID-19. Only 30% of consumers said the present situation had influenced their tobacco usage, with the most common effects being a lack of cigarette goods and higher pricing. While some users saw this as an opportunity to stop, others reported increasing tobacco use as a result of increased stress. 51% of the 219 (34%) tobacco users who stopped during the lockout did so because of the lockdown and their concerns about COVID-19. Those who were aware of the link between the coronavirus and tobacco abstained twice as much as those who were not. Historically, the tobacco business has targeted young rural men with commercials featuring tough imagery of cowboys, hunters, and race car drivers. Youth in rural areas are less likely to be exposed to anti-tobacco messaging in the media than those in urban ones. Tobacco retailers and its advertisements are more common in low-income and predominantly minority communities than in other areas. People are more inclined to smoke if they see tobacco advertisements in venues where tobacco is marketed. Tobacco products are heavily advertised both outside and inside point-of-sale in African American neighborhoods. The United States tobacco market consists of the following segments, product, distribution channel, region, top 10 leading states, and company. In terms of product, the United States tobacco market is segmented into cigarettes, cigars, smoking tobacco, smokeless tobacco. The cigarettes segment holds the prominent shares in the United States tobacco sector by revenue, with the representation of around 40% in the total segmental revenue in the year 2020. In terms of region, the United States tobacco market is segmented into south, west, mid-west, and north-east. Among these, the west region of the United States is the fastest growing within the United States tobacco market for the forecasted period, with a CAGR of around 4.68%, and is expected to maintain its dominance throughout the forecast period. Major companies operating in the United States tobacco market are Philip Morris USA, Inc. (Altria Group, Inc.), Reynolds American Inc., ITG Brands, LLC, Liggett Vector Brands LLC, Swedish Match USA, Inc, Scandinavian Tobacco Group US Holding, Inc, UNIVERSAL CORPORATION, TURNING POINT BRANDS, INC., Brown & Williamson Tobacco Corporation, and Mafco Consolidated Group Inc. To remain competitive in the United States tobacco market, companies are continuously launching new products, upgrading new technology, changing marketing strategies to capture the majority of the consumer base across the country. “The rising demand for online channels is adding more enhancement to the tobacco market. Though, the tobacco market is highly fragmented due to the presence of various giant players and local players such as Philip Morris USA, Inc. (Altria Group, Inc.), Reynolds American Inc., ITG Brands, LLC, Liggett Vector Brands LLC. Companies have been developing new products to meet the shifting wants of millennials and generation Z. Philip Morris, for example, announced the launch of IQOS, which stands for “I quit original smoking,” in May 2019. This is an electrical device that warms tobacco-filled sticks, which are wrapped in paper and produce nicotine-containing mist as a result. This product was introduced as a non-cigarette alternative.”, said Mr. Karan Chechi, Research Director with TechSci Research, a research-based global management consulting firm.

12. Sample Data - Snapshot United States Tobacco MarketSize, By Value (USD Million), 2016–2026F CAGR By Value CAGR By Value XX% YY% United States Tobacco Market Share, By Product, By Value, 2016 & 2026F United States Cigarettes Market Share, By Distribution Channel, By Value, 2016 & 2026F

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