Tobacco Growing in China - Market Research Report (2014-2029)
Beijing, China
Last Updated: May 2024
0118Revenue
$12.2bn
Past 5-Year Growth
Profit
$XXX.Xm
Employees
2m
Businesses
623k
Wages
$X.Xbn
Tobacco Growing in China industry analysis
Tobacco is grown on less than 1% of the world's agricultural land and in a wide variety of soils and climates. Since the 1960s, the bulk of production has moved from the Americas to Africa and Asia. Land devoted to tobacco growing has been halved in the United States, Canada and Mexico, but has almost doubled in China, Malawi and Tanzania.Due to the issuance of China's Tobacco Control Program in late 2012 in response to the World Health Organization Framework Convention on Tobacco Control (WHO FCTC), tobacco leaf production capability has been declining since 2013. In 2013, the planting area of tobacco leaves in China peaked at 1,551.7 thousand hectares, and reduced to 1,057.9 thousand hectares in 2018, at an average rate of 7.4%. In the past five years to 2023, the tobacco leaf planting area in China is expected to continue decreasing, at an average rate of 0.4%, to 1,008.1 thousand hectares.The output of tobacco leaf in China is set to total 2.2 million tons in 2023, decreasing at an average rate of 0.5% in the past five years to 2023, with flue-cured tobacco leaves accounting for 95.1% of the total. Revenue for the Tobacco Growing industry in China is expected to increase by an annualized 5.6% over the five years through 2023, to $12.2 billion. This includes a 2.7% increase in the current year.Industry revenue is projected to grow steadily over the next five years, mainly due to the large smoking population in China and the rising purchasing price of tobacco leaves. Demand from downstream domestic tobacco leaf markets and quality improvements in tobacco leaf production will be the main drivers of industry development. However, the growth rate is forecast to slow, mainly due to the improving health awareness of Chinese residents. Over the next five years, industry revenue is projected to grow by an annualized 3.0%, to $14.1 billion in 2028.
Trends and Insights
- The Chinese Government implements national monopoly on tobacco. STMA implements a unified leadership and monopoly management for the tobacco industry in China, and formulates the annual planting area and procurement plan of tobacco leaves.
- Flue-cured tobacco leaf is the major variety planted in China. Flue-cured tobacco leaf represents over 95% of industry output due to the preference of Chinese smokers for flue-cured cigarettes.
- Tobacco growing requires suitable climate and soil conditions. Industry operations are concentrated in regions with favorable agronomic conditions and skilled growers, like Yunnan, Guizhou, Hunan, Henan and Sichuan provinces.
- The industry is governed by the State Council. China has implemented national monopoly on tobacco since 1981. STMA formulates the annual planting area and purchasing price of tobacco leaves.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 5.6 % over the past five years, to reach an estimated $12.2bn in 2024.
Trends and Insights
Industry operations are controlled by the Chinese Government
- In 1981, the State Council decided to implement national monopoly on tobacco.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
The industry will continue to receive government guidance
- To ensure the ongoing development of China's tobacco leaf production, the industry will continue to receive government guidance on improving quality, regulating and controlling total output and optimizing layout and product mixes.
Biggest companies in the Tobacco Growing in China
| Company | Market Share (%)
2023 | Revenue ($short_0)
2023 |
|---|
There are no companies that hold a large enough market share in the Tobacco Growing in China industry for IBISWorld to include in this product.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Flue-cured tobacco leaves, Sun-cured and other tobacco leaves and Others. Flue-cured tobacco leaves is the largest segment of the Tobacco Growing in China.
Trends and Insights
Flue-cured tobacco leaf is the largest tobacco variety planted in China
- Flue-cured tobacco leaf refers to the tobacco leaves that are dried in a specially designed baking room with suitable temperature and humidity.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- There are no industries to display.
Complementors
- Cotton Growing in China
- Tobacco Leaf Processing in China
- Cigarette Manufacturing in China
International industries
- Tobacco Growing in the US
Table of Contents
About this industry
Industry definition
The Tobacco Growing industry in China is engaged in tobacco leaf production, including purchasing agricultural inputs like plant seeds, plant bulbs, fertilizers, agricultural chemicals, pesticides and growing facilities. It is also engaged in the primary processing of tobacco leaves, like baking, drying and basking. This industry does not engage in the redrying of tobacco leaves.
What's included in this industry?
Flue-cured tobacco leavesSun-cured and other tobacco leavesCompanies
Purchase this report to view all major companies in this industry.
Related Terms
FLUE-CURED TOBACCOBURLEY TOBACCO LEAFVIRGINIA TOBACCOPerformance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
The Chinese Government implements national monopoly on tobacco. STMA implements a unified leadership and monopoly management for the tobacco industry in China, and formulates...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Flue-cured tobacco leaf is the major variety planted in China. Flue-cured tobacco leaf represents over 95% of industry output due to the preference of Chinese smokers for flu...
In this chapter
- Products & Services
- Major Markets
- International Trade
Key metrics
- Largest market segment and value in 2024
- Product innovation level
- Total imports, level and trend
- Total exports, level and trend
- Trade Balance
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
- International trade, including imports by country and exports by country
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
- Recent trends in import and export volumes, country of origin or destination, and expected future trends
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Tobacco growing requires suitable climate and soil conditions. Industry operations are concentrated in regions with favorable agronomic conditions and skilled growers, like Y...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
The industry is governed by the State Council. China has implemented national monopoly on tobacco since 1981. STMA formulates the annual planting area and purchasing price of...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
There are no industry operators with significant market power. The industry is labor-intensive, and tobacco growing entities are mostly farmers in small-scale household farms...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
Detailed analysis
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
The industry is controlled by the Chinese Government. The State Council implements national monopoly management on tobacco. STMA formulates the plan for planting area and pur...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Government-set purchasing price greatly influences profit levels. The planting area and purchasing price of tobacco leaf are exclusive governed by STMA, which greatly influen...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in China include:
- National Bureau of Statistics China
- General Administration of Customs
- People’s Bank of China
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Tobacco Growing industry in China in 2024?
The market size of the Tobacco Growing industry in China is $12.2bn in 2024.
How many businesses are there in the Tobacco Growing in China industry in 2024?
There are 623k businesses in the Tobacco Growing industry in China, which has declined at a CAGR of 7.8 % between 2019 and 2024.
Has the Tobacco Growing industry in China grown or declined over the past 5 years?
The market size of the Tobacco Growing industry in China has been growing at a CAGR of 5.6 % between 2019 and 2024.
What is the forecast growth of the Tobacco Growing industry in China over the next 5 years?
Over the next five years, the Tobacco Growing industry in China is expected to grow.
What does the Tobacco Growing in China include?
Flue-cured tobacco leaves and Sun-cured and other tobacco leaves are part of the Tobacco Growing industry.
How competitive is the Tobacco Growing industry in China?
The level of competition is moderate and increasing in the Tobacco Growing industry in China.
