ECON 1077–
Intermediate
Economics for
Business
1.0 INTRODUCTION
2.0 INDUSTRY IDENTIFICATION
2.1 Firm Size Distribution
2.2 Analysis of Descriptive Statistics
2.3 Market Concentration & Analysis
3.0 SUMMARY
4.0 REFERENCES
, 1.0 INTRODUCTION
Tobacco consumption worldwide in 2020 was close to six million metric tons. The United
States was among the top tobacco producers in the world. During the period 2022 to 2040,
the global tobacco market is expected to grow at a compound annual growth of 2.4%. in
2021, the global tobacco market was valued at USD 849.9 billion. Growing numbers of
smokers in developing Asian and African countries have been driving the demand for
cigarettes, and extensive marketing campaigns by major companies have also contributed to
the industry’s growth. Increasing product launches are driving consumers to consume
tobacco, which will drive market growth in the future. In 2020, the industry is predicted to
produce about half a million pounds with an estimated value of 800 million U.S. dollars.
Tobacco manufacturing is expected to generate 45.4 billion U.S. dollars revenue in 2022.
Harvested tobacco covered some 219 thousand acres in 2021, and North Carolina has
continued to lead the nation in tobacco production since 2017. British American tobacco was
the most profitable tobacco company in 2020 with net sales of about 33 billion U.S. dollars.
Approximately 843.4 million U.S. dollars’ worth of unmanufactured tobacco was exported
to the rest of the world in 2021. A new economic report suggests tobacco taxes should be
increased to help society become smoke-free society since smoking costs the UK economy
more than £19 billion annually. UK smokers spends around £15.6 billion a year on legal and
illicit tobacco per year, meaning that in the UK, the number of jobs would increase between
460k and 500k, equating to 346k – 376k full-time jobs worth between £11.3bn and £12.4bn.
2.0 INDUSTRY IDENTIFICATION
Business types are categorized by their characteristics and their common operations by using
an Industry Classification method. A major Industry discussed in the following report is the
Tobacco Industry. NACE Rev. 2 industry classification describes the tobacco industry as the
Manufacture of Tobacco under Division 12 and Group 12.0, which corresponds to the Class
12.00. It is also classified under part of ISIC Rev. 4 as 1200.
2.1 Firm Size Distribution
Size of Firms According to Employees
Countries Micro Small Medium Large Total
Employees Employees Employees Employees
0-9 10 - 49 50 - 249 > = 250
Great Britain 5 38.46% 4 30.77% 0 0% 4 30.77% 13
United Stated of
America 1372 86.73% 166 10.49% 22 1.39% 22 1.39% 1582
According to Eurostat
Intermediate
Economics for
Business
1.0 INTRODUCTION
2.0 INDUSTRY IDENTIFICATION
2.1 Firm Size Distribution
2.2 Analysis of Descriptive Statistics
2.3 Market Concentration & Analysis
3.0 SUMMARY
4.0 REFERENCES
, 1.0 INTRODUCTION
Tobacco consumption worldwide in 2020 was close to six million metric tons. The United
States was among the top tobacco producers in the world. During the period 2022 to 2040,
the global tobacco market is expected to grow at a compound annual growth of 2.4%. in
2021, the global tobacco market was valued at USD 849.9 billion. Growing numbers of
smokers in developing Asian and African countries have been driving the demand for
cigarettes, and extensive marketing campaigns by major companies have also contributed to
the industry’s growth. Increasing product launches are driving consumers to consume
tobacco, which will drive market growth in the future. In 2020, the industry is predicted to
produce about half a million pounds with an estimated value of 800 million U.S. dollars.
Tobacco manufacturing is expected to generate 45.4 billion U.S. dollars revenue in 2022.
Harvested tobacco covered some 219 thousand acres in 2021, and North Carolina has
continued to lead the nation in tobacco production since 2017. British American tobacco was
the most profitable tobacco company in 2020 with net sales of about 33 billion U.S. dollars.
Approximately 843.4 million U.S. dollars’ worth of unmanufactured tobacco was exported
to the rest of the world in 2021. A new economic report suggests tobacco taxes should be
increased to help society become smoke-free society since smoking costs the UK economy
more than £19 billion annually. UK smokers spends around £15.6 billion a year on legal and
illicit tobacco per year, meaning that in the UK, the number of jobs would increase between
460k and 500k, equating to 346k – 376k full-time jobs worth between £11.3bn and £12.4bn.
2.0 INDUSTRY IDENTIFICATION
Business types are categorized by their characteristics and their common operations by using
an Industry Classification method. A major Industry discussed in the following report is the
Tobacco Industry. NACE Rev. 2 industry classification describes the tobacco industry as the
Manufacture of Tobacco under Division 12 and Group 12.0, which corresponds to the Class
12.00. It is also classified under part of ISIC Rev. 4 as 1200.
2.1 Firm Size Distribution
Size of Firms According to Employees
Countries Micro Small Medium Large Total
Employees Employees Employees Employees
0-9 10 - 49 50 - 249 > = 250
Great Britain 5 38.46% 4 30.77% 0 0% 4 30.77% 13
United Stated of
America 1372 86.73% 166 10.49% 22 1.39% 22 1.39% 1582
According to Eurostat
