ORGANIC TOBACCO MARKET ANALYSIS

Market Challenges And Opportunities

Drivers:

An increasing number of smokers around the globe is predominantly propelling the market growth of organic tobacco. According to the U.S. Department of Health & Human Services, in 2018, nearly 14 of every 100 U.S. adults aged 18 years or older (13.7%) smoked cigarettes. Therefore, a growing number of smokers is a major factor augmenting the market growth of organic tobacco over the forecast period.

Rising health-conscious consumers is raising demand for organically farmed tobacco. Moreover, rising awareness regarding organic products due to its various health benefits is projected to augment the market growth of organic tobacco. Organically grown tobacco contains fewer chemicals and harmful products such as fertilizers and pesticides. Thus rising health-conscious consumers is augment the market growth of organic tobacco. 

Market Opportunities

Increasing use of hookah around the globe is projected to serve major growth opportunities to the market of organic tobacco. It is widely used in the hookah and rising consumption of hookah is expected to foster market growth. Increasing income level of the consumer coupled with the changing lifestyle of the consumer is further expected to propel the market growth of the organic tobacco over the forecast period.

The growing adoption of organic farming among farmers due to growing concern over health due to the use of pesticide residue is projected to provide enormous opportunities. According to the Organic Without Boundaries, in 2017, a total of 69.8 million hectares of land were organically farmed which shows twenty percent growth from 2016 numbers. Thus growing adoption of organic farming practices is anticipated to foster market growth. 

Figure 2. Global Organic Tobacco Market – Opportunity Analysis

Market Restraints

High cost and low yield of organic tobacco as compared to conventional tobacco are projected to hinder the market growth. Organic tobacco is twice the rate as compared to conventional tobacco and around 20-30% less yield is obtained from organic tobacco. Thus the high cost of tobacco is expected to hinder the market growth of organic tobacco.

Adverse effects associated with carbon monoxide, heavy metal, and tar released by organic tobacco as they lead to various chronic disease is expected to limit the market growth of organic tobacco.