May 24, 2019

Organic Tobacco Market 2025 : Global Industry Perspective, Major Vendors & Forecast

Organic tobacco is cultivated without the use of additional chemicals, fertilizers and pesticides. The market for organic tobacco is governed by numerous regulations like the farmers have to obtain a certificate to get approved for the cultivation of organic tobacco. Moreover, the organically certified tobacco has limit on the amount of chemicals. The land for cultivation of organic tobacco has to be free from pesticides or other chemicals, 3 years prior production. After cultivation the tobacco leaves are cured using various process. Flue cured, air cured, sun cured and fire cured are covered in the scope of our research.

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Global consumption of organic tobacco was pegged at 11,675 tonnes in 2018. The global organic tobacco market was valued at US$ XX Mn in 2018 and is expected to reach US$ XX Mn by the end of 2025 expanding at a CAGR of XX% over the forecast period. The global organic tobacco market is anticipated to represent incremental opportunity of US$ XX Mn between 2018 and 2025. In terms of volume, the global organic tobacco market reached 12,320 tonnes by 2018 end and is anticipated to increase to 22,463 tonnes by 2025 expanding at a CAGR of XX% over the forecast period.

Increasing demand for organic products, rising health consciousness and high disposable income is driving revenue growth of the global organic tobacco market

Countries like U.S., Canada, Brazil, Spain, Italy, Germany and Japan have shown an increasing adaption for organic tobacco. Usually, organically-grown FCV tobacco used in cigarettes contains lesser harmful chemical such as tar, nicotine, carbon monoxide, etc. Many anti-tobacco activists have claimed that organic cigarettes help smokers quit the habit sooner, as compared to conventional cigarettes. As a result, many smokers are switching to organic cigarettes. Rising health consciousness has changed the taste and preference of smokers across the globe, which has made consumers move towards organic tobacco-based products over conventional ones. The demand for organic tobacco products is gaining traction in developed countries. High disposable income and increasing awareness with regard to organic tobacco-based products are expected to boost demand for organic tobacco.

Leading Market Players dominating the global organic tobacco market

Some of the leading players in the global organic tobacco market are: Santa Fe Natural Tobacco Company (SFNTC), Hi Brasil Tobacco, Vape Organics, Mother Earth Tobacco, Bigarette and Co.

Roll your own tobacco segment of the global organic tobacco market is anticipated to grow at a faster rate

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On the basis of application, the global organic tobacco market can be segmented into smoking and smokeless segment. The smoking segment is classified into cigarettes, cigars and cigarillos, RYO and others (Bidis, Kreteks, pipe, water pipes etc.). The smokeless segment comprises of chewing tobacco, snuff and organic e -liquid for vapor and e- cigarettes. Smoking segment accounted for XX% volume share in 2018. The use of organic tobacco for RYO applications is anticipated to grow at a faster rate.

In the smokeless segment, there has been an increasing demand for organic e-liquids for vapor and e-cigarettes.

On the basis of type, the global organic tobacco market is segmented into flue cured, air cured, sun cured and fire cured segment. Flue cured accounted for XX% volume share in 2018 and is anticipated to expand at a significant CAGR over the forecast period. Flue curing method is most popular in regions of North America and Europe.

North America is expected to remain dominant regional market over the forecast period

On the basis of geography, the global organic tobacco market is segmented into North America, Latin America, Western Europe, Eastern Europe, Asia Pacific excluding Japan, Middle East & Africa and Japan. The North America organic tobacco market accounted for a value share of XX% in 2018 and is projected to retain its dominance throughout the forecast period. The Western Europe organic tobacco market is expected to represent significantly high incremental opportunity between 2018 and 2025 while APEJ is expected to expand at a significant CAGR in terms of volume over the forecast period. Japan organic tobacco market was valued at US$ XX Mn by 2016 end and is expected to reach a value of US$ XX Mn by the end of 2025.

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