LONDON--(BUSINESS WIRE)--SpendEdge has been monitoring the global tobacco market and the market is poised to experience spend growth of about USD 190 billion between 2019-2024 at a CAGR of over 4% during the forecast period. Request Free Sample Pages.
Read the 126-page research report with TOC and LOE on "The Global Tobacco Market, Pricing Outlook in Geographies that include APAC, North America, South America, and MEA, and insights into best practices to optimize procurement spend.”
The growing popularity of NGP products such as e-cigarettes, vapes, smokeless tobacco products, and other tobacco heating products will drive the momentum of spend growth in the tobacco market. To capitalize on such growing popularity of NGP products, most of the tobacco suppliers are participating in M&A activities to increase their market share and to increase their profitability in markets that are exhibiting a slowing demand. This will contribute to spend growth in the tobacco market during the forecast period.
APAC is home to the fastest-growing tobacco market. An exponential rate of tobacco procurement in this region will be driven by the lack of regulatory scrutiny of the tobacco market and the availability of tobacco products at cheaper rates. Currently, APAC houses more than 55% of the global smoking demography.
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Insights into the market tobacco trends
- Regulatory bodies impose increased taxes on tobacco-based products to discourage young smokers. This is expected to increase the prices of tobacco products to meet the government tax obligations for tobacco products, which, in turn, will drive the tobacco procurement during the forecast period.
- The manufacturing of tobacco products is a highly labor-intensive process which will consequently act as a significant cost component in the supplier’s cost structure. The labor cost is spread across multiple processes within the tobacco supply chain. For instance, tobacco leaves are cured to ensure that it retains the desired aroma, flavor, and nicotine content.
Insights into strategies that will help buyers optimize their tobacco procurement spend
- The adoption of route optimization tools and the software will help suppliers evaluate the possible routing option (in terms of cost, time, and distance) and determine the most cost-effective route for the transportation of their products to buyers, thereby increasing their cost-saving opportunities during tobacco procurement.
- Buyers are advised to partner with suppliers who can help them minimize their inventory holding costs and avoid wastage through just-in-time tobacco procurement methodology. Tobacco suppliers are expected to have expertise in handling and storage as tobacco-based products require sensitive handling and storage conditions, particularly pertaining to temperature and humidity, to avoid wastage.
COVID-19 Impact Assessment and Market Insights
SpendEdge’s reports now include an in-depth complimentary analysis of the COVID-19 impact on procurement and latest market data to help your company overcome sourcing challenges. Our Tobacco Procurement Market Intelligence Report offers actionable procurement intelligence insights, sourcing strategies, and action plans to mitigate risks arising out of the current pandemic situation. The insights offered by our reports will help procurement professionals streamline supply chain operations and gain insights in the best procurement practices to mitigate losses.
To stay on top of latest trends and supply market information, check out SpendEdge’s knowledge center on COVID-19 impact assessment.
The top tobacco suppliers enlisted in this report
This tobacco procurement market intelligence report has enlisted the top suppliers and their cost structures, SLA terms, best selection criteria, and negotiation strategies.
- China National Tobacco Corp.
- British American Tobacco Plc
- Philip Morris International Inc.
- Altria Group Inc.
- Imperial Brands Plc
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Some of the key topics covered in this report are:
- Tobacco market spend segmentation by region
- Tobacco supply market analysis
- Tobacco procurement best practices
- Regional spend opportunity for tobacco suppliers
- Tobacco suppliers cost structure
- Total cost of ownership analysis in the tobacco market
- Tobacco suppliers pricing models analysis
- Category management objectives to promote an optimized tobacco procurement
- Cost saving opportunities in the tobacco market
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