United States (USA) Cigarette Market Overview, 2028

Early in the 20th century, cigarette smoking grew in popularity in the United States due to vigorous advertising by tobacco entities. Cigarette advertising was frequently seen in a variety of media, including movies and periodicals, because smoking was seen as glamorous and socially acceptable. One of the most common tobacco items that is lighted on one end and inhaled is the cigarette. In the United States, they come in a range of shapes, sizes, hues, intensity, and flavours. The country's demand for cigarettes is now being positively impacted by the rising number of adult smokers. The US cigarette market is expanding as a result of people's hectic and stressful lifestyles, easy access to distinctive and novel flavours including clove, anise, citrus, spearmint, and wintergreen, and other factors. In addition to this, a number of producers are providing the product to merchants at a reduced price to lower the overall cost of cigarettes. In order to improve brand recognition and increase their current customer base, they are also developing sophisticated packaging. In order to reach a bigger audience in the nation, industry players are also implementing aggressive advertising methods and sponsoring several public events. In combination, these elements are projected to have a favourable effect on the market's expansion in the ensuing years. There has been a significant emphasis on smoking cessation programs and products to help individuals quit smoking. Nicotine replacement therapy, prescription medications, and support groups are available to assist smokers in their efforts to quit. In recent years, alternative nicotine products, such as electronic cigarettes (e-cigarettes or vapes), have gained popularity among some segments of the population. These products have sparked debate about their safety and potential to help smokers quit or serve as a gateway to traditional cigarette smoking. The U.S. government has implemented various regulations aimed at reducing smoking rates, including graphic warning labels on cigarette packages, restrictions on flavored tobacco products, and raising the legal age to purchase tobacco products to 21. According to the research report "United States Cigarette Market Overview, 2028," published by Bonafide Research, the United States Cigarette market was valued more than USD 80 Billion in 2022. Efforts to prevent youth initiation are a priority. Educational programs in schools, restrictions on tobacco sales to minors, and campaigns targeting youth aim to prevent young people from starting to smoke. High taxes on cigarettes have been a significant driver of price increases, contributing to reduced consumption. States vary in their taxation levels, and some have imposed substantial excise taxes on tobacco products. Smoking prevalence tends to vary by demographic factors. Generally, smoking rates have been higher among lower-income individuals, those with less education, and certain ethnic groups. However, smoking rates have been declining across most demographics. There has been on-going debate about harm reduction strategies, such as promoting less harmful alternatives to traditional cigarettes, like nicotine replacement therapies or electronic cigarettes. This has led to discussions about the role of e-cigarettes in reducing harm. Non-profit organizations and advocacy groups dedicated to tobacco control continue to work to reduce smoking rates. These organizations often engage in lobbying, public awareness campaigns and legal actions to further their goals. The COVID-19 pandemic had mixed effects on the cigarette market. While some smokers attempted to quit due to health concerns, others increased their smoking as a way to cope with stress and anxiety. The long-term impact of the pandemic on smoking rates and behaviours remains to be seen. States and localities in the U.S. continue to introduce new tobacco control policies, such as flavor bans, menthol cigarette bans, and restrictions on where smoking is allowed. These policies aim to reduce smoking prevalence further and protect public health. The U.S. tobacco industry has seen consolidation over the years, with a few major companies dominating the market. Companies like Philip Morris USA (owned by Altria Group), Reynolds American (a subsidiary of British American Tobacco), and ITG Brands have a significant presence.

Light cigarettes were marketed as a healthier alternative to regular cigarettes. Manufacturers claimed that these cigarettes delivered less tar and nicotine to the smoker's lungs. This perception of reduced harm appealed to many consumers who wanted to continue smoking while minimizing potential health risks. There was a significant demand for light cigarettes among smokers who were concerned about the health effects of smoking. These consumers believed that light cigarettes offered a way to continue their smoking habit with a reduced risk of adverse health consequences. Tobacco companies invested heavily in marketing and branding light cigarettes. They used terms like "light," "ultra-light," and "mild" to create a positive image around these products. Packaging and advertising often featured lighter colors and symbols suggesting reduced harm. Light cigarettes often featured advanced filter technology designed to reduce the concentration of tar and nicotine inhaled by the smoker. These filters were perceived as providing a smoother smoking experience, which appealed to some consumers. Light cigarettes were available in various flavors and styles, offering consumers a broader range of options compared to regular cigarettes. This diversity of flavors catered to different taste preferences and contributed to their market appeal. The overall e-commerce sector in the United States has been growing rapidly. Consumers increasingly turn to online platforms to make purchases, including cigarettes. The convenience of online shopping, especially for products like cigarettes, where consumers often know their preferred brand and product, has contributed to this growth. Online retailers often offer a broader selection of cigarette brands and variants than physical stores. This expanded product range allows consumers to explore different options and potentially discover new products they may not have encountered in local stores. Online platforms make it easier for consumers to compare prices across different retailers and take advantage of discounts, promotions, and bulk purchase options. Price-conscious consumers may be drawn to online shopping to find better deals. Online cigarette retailers typically have stringent age verification processes in place to comply with legal requirements. This helps prevent sales to minors and ensures that only legally eligible consumers can make purchases. • In 2020, the FDA banned the sale of flavored e-cigarettes, with the exception of menthol and tobacco flavors. This ban was implemented in response to the growing popularity of e-cigarettes among youth. • Altria is the largest cigarette company in the United States, with brands such as Marlboro, Newport, and Virginia Slims. In recent years, the company has focused on developing and marketing reduced-risk tobacco products, such as its IQOS heated tobacco device and Marlboro HeatSticks. Altria has also invested in e-cigarettes and other vaping products. • Imperial Brands is a British multinational tobacco company with a significant presence in the United States. The company's brands include Kool, Salem, and Winston. Imperial Brands has also invested in reduced-risk tobacco products, such as its PULZE e-cigarette.

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Manmayi Raval

Research Consultant

Considered in this report: • Geography: United States • Historic year: 2017 • Base year: 2022 • Estimated year: 2023 • Forecast year: 2028 Aspects covered in this report: • United States Cigarette market Outlook with its value and forecast along with its segments • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation By Type • Light • Medium • Others

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By Distribution Channel • Speciality Store • Hypermarket/supermarket • Convenience Stores • Online • Others 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 Cigarette 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.