The tobacco industry comprises those persons and companies who are engaged in the growth, preparation for sale, shipment, advertisement, and distribution of tobacco and tobacco-related products. It is a global industry; tobacco can grow in any warm, moist environment, which means it can be farmed on all continents except Antarctica. According to the WHO Framework Convention on Tobacco Control, the "tobacco industry" encompasses tobacco manufacturers, wholesale distributors and importers of tobacco products. This evidence-based treaty expects its 181 ratified member states to implement public health policies with respect to tobacco control "to protect present and future generations from the devastating health, social, environmental and economic consequences of tobacco consumption and exposure to tobacco smoke." Tobacco, one of the most widely used addictive substances in the world, is a plant native to the Americas and historically one of the most important crops grown by American farmers. More specifically, tobacco refers to any of various plants of the genus Nicotiana (especially N. tabacum) native to tropical America and widely cultivated for their leaves, which are dried and processed chiefly for smoking in pipes, cigarettes, and cigars; it is also cut to form chewing tobacco or ground to make snuff or dipping tobacco, as well as other less common preparations. From 1617 to 1793, tobacco was the most valuable cash crop export from British North America and the United States. Until the 1960s, the United States grew, manufactured and exported more tobacco than any other country. Tobacco is an agricultural commodity product, similar in economic terms to agricultural foodstuffs: the price is in part determined by crop yields, which vary depending on local weather conditions. The price also varies by specific species or cultivar grown, the total quantity on the market ready for sale, the area where it is grown, the health of the plants, and other characteristics individual to product quality. Since 1964, conclusive medical evidence of the deadly effects of tobacco consumption has led to a sharp decline in official support for tobacco production. Policy and law restricting tobacco smoking has increased globally, but almost 6 trillion cigarettes are still produced each year. Between 2008 and 2022, the number of cigarettes sold decreased by about 12 %. Tobacco is often heavily taxed to gain revenues for governments and as an incentive for people not to smoke.
History
For a history of how tobacco has been grown and marketed, see tobacco, smoking and articles on similar topics.
Position of industry The phrase "tobacco industry" generally refers to the companies involved in the manufacture of cigarettes, cigars, snuff, chewing tobacco and pipe tobacco. China National Tobacco Co. has become the largest tobacco company in the world by volume. Following extensive merger and acquisition activity in the 1990s and 2000s such as the spinoff of Altria's international tobacco holdings as Philip Morris International in 2008 and R. J. Reynolds Tobacco Company's sale of its international tobacco holdings to Japan Tobacco creating Japan Tobacco International in 1999, five firms dominate international markets – in alphabetical order:
Altria British American Tobacco Imperial Tobacco Japan Tobacco Philip Morris International In August 2024, Japan Tobacco's JT Group agreed to acquire U.S. cigarette company Vector Group in a cash deal, and Japan Tobacco later said it completed the acquisition on 7 October 2024. Altria still owns the Philip Morris tobacco business in the United States, but Philip Morris International has been fully independent since 2008. In most countries these companies either have long-established dominance, or have purchased the major domestic producer or producers (often a former state monopoly). Until 2014 the United States had one other substantial independent firm, Lorillard, which Reynolds American, Inc. acquired. India has its own major player, ITC Limited (25.4%-owned by British American Tobacco). A small number of state monopolies survive, as well as some small independent firms. Tobacco advertising is becoming increasingly restricted by the governments of countries around the world citing health issues as a reason to restrict tobaccos appeal.
Industry outlook in the United States
The tobacco industry in the United States has suffered greatly since the mid-1990s, when it was successfully sued by several U.S. states. The suits claimed that tobacco causes cancer, that companies in the industry knew this, and that they deliberately understated the significance of their findings, contributing to the illness and death of many citizens in those states. The industry was found to have decades of internal memos confirming in detail that tobacco (which contains nicotine) is both addictive and carcinogenic (cancer-causing). The industry had long denied that nicotine is addictive. The suit resulted in a large cash settlement being paid by a group of tobacco companies to the states that sued. Further, since the suit was settled, other individuals have come forth, in class action lawsuits, claiming individual damages.
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