Cigarette & Tobacco Manufacturing in Canada - Industry Market Research Report

Cigarette & Tobacco Manufacturing in Canada - Industry Market Research Report
Cigarette & Tobacco Manufacturing in Canada

Cigarette and tobacco manufacturers in Canada have struggled throughout 2023 due to tough regulatory pressures, taxation and declining cigarette consumption. The government has increased excise taxes several times over the past five years in an effort to curb smoking by forcing industry operators to increase prices to salvage profit. This strategy has been successful in part, since cigarette consumption and the number of smokers in Canada have both declined during the period, to the detriment of the industry. However, as a result of tobacco's inelastic demand, operators have been able to increase prices at a faster rate than demand has fallen; as a result, this has been a key feature for industry profit growth. However, the industry is still anticipated to fall at a CAGR of 5.1% over the past five years and is expected to total $2.3 billion in 2023, when revenue will jump by an estimated 1.4%.Operators within this industry stem and redry tobacco, and manufacture cigarettes, cigars, smoking and chewing tobacco and reconstituted tobacco. Industry operators acquire raw materials from tobacco growers, and paper and fibre manufacturers. They then process these materials into tobacco products that are sold to wholesalers and retailers.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.