WORLD
A recent report by Reportbuyer is estimating that organic tobacco in the RYO market segment will generate more revenue compared to the smokeless segment.
According to the report, organic tobacco is expected to gain traction over the forecast period of 2016-2026. The smoking segment is the most dominating segment in terms of market share as well as CAGR. In 2016, the smoking segment was expected to dominate the global organic tobacco market with more than 80% revenue share. The smoking segment is projected to reach more than US$200 million by the end of 2026, expanding at a CAGR of 7.6% over the forecast period. The segment is anticipated to gain more than 5 basic points (BPS) between 2016 and 2026 and is anticipated to record total incremental opportunity of more than US$100 million between 2016 and 2026 – which is estimated to represent close to 90% share of the total incremental opportunity between 2016 and 2026.
The RYO tobacco sub-segment in the smoking segment is expected to expand at a significant CAGR of 8.1% over the forecast period. The smoking segment is driving market growth across the globe as anti-tobacco activists claim that organic cigarettes help smokers quit the habit sooner as compared to conventional cigarettes. As a result, many smokers are switching to organic cigarettes and this is creating a positive impact on the smoking segment of the global organic tobacco market.
An increasing awareness and eventually a rising demand for organic tobacco products is gaining traction in developed countries such as US, Canada, Brazil, Spain, Italy, Germany, and Japan.
The roll-your-own tobacco sub-segment of the smoking segment is anticipated to grow 2.5 times by the end of 2026 in Latin America. Roll-your-own tobacco is gaining popularity in the Western Europe organic tobacco market.