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Raw tobacco leaves are long, elliptical green leaves. Raw tobacco leaves are basically unprocessed tobacco leaves, which are directly sourced from tobacco farms. Raw tobacco leaves require further processing in order to produce the end product. Further processing is done by tobacco manufacturers at their plants. Raw tobacco leaves are used to produce tobacco, end-product manufacturers add several types of a flavouring agent, and fragrance on the raw tobacco leaves while manufacturing tobacco.
Tobacco is a vital ingredient in several nicotine-based products such as cigarettes, cigars, and other dry stuffs. Increasing demand and consumption of tobacco-based products in developed as well as in developing countries = bolstering the raw tobacco leaves market. The prominent tobacco manufacturers creating long-term supply contracts with the regional raw tobacco leaves producers in order to maintain a smooth supply chain and tackle the challenge of price volatility.
Tobacco-based products are witnessing a substantial rise in demand as well as in consumption from the past few years. Growing demand and consumption of tobacco-based product has a direct positive impact on the growth of the raw tobacco leaves market. Cigarettes is the most prominent end-use product of raw tobacco leaves, continuously increasing consumption of cigarettes in medium and low-income countries driving the raw tobacco leaves market in these countries.
Tobacco is harmful to the human body, due to which there are several regulatory restrictions are imposed on the tobacco industry. Governments of several countries put a ban on smoking and introduce several stringent regulations on the production and procurement of tobacco. These stringent government regulations hampering the growth of the raw tobacco leaves market at a significant extent.
Key Market Driver -
Increasing consumption of tobacco based products boosting its market
Key Market Restraint -
Stringent government regulations and illegal trade of tobacco
The key companies operating in the global Raw Tobacco Leaves market are, Star Tobacco International, Leafcon International, Whole Leaf Tobacco LLC., Leaf 2 Smoke, NYC Tobacco Leaf LLC, Associated Tobacco Company Ltd., tobacco Cooperative Inc., Capital Tobacco Ltd, and Tobacco and Tubes.
In terms of the application of raw tobacco leave, smoking holds the dominant amount of shares in the global market. Cigarettes is the widely consume end product of raw tobacco leave, owing to which its demand is constantly increasing in high as well as low and medium-income countries.
In terms of leaf type, Virginia segment is expected to account a major share in the global raw tobacco leaves market. Virginia is a variety of tobacco also known as bright tobacco. Tobacco manufacturers prefer Virginia leaf type owing to its easy availability and price effectiveness. The Oriental segment is expected to witness significant growth in the near future due to its increasing adoption in end-use industries.
Asia Pacific is the leading consumer of raw tobacco leaves, countries such India, APAC countries, and several other South Asian countries consume a significant amount of tobacco in various forms such as dry tobacco, cigarettes, and others. Also the raw tobacco leaves use for some medicinal purposes as well as in several types of foods or cuisines to impart a subtle and bitter heat. An increasing number of stringent regulations and growing awareness among consumers regarding the negative impact of tobacco may hinder the growth of raw tobacco leaves market in this region.
Europe and North America are the major consumers of cigarettes and tobacco products. The increasing inclination of youths towards cigarettes and several other tobacco products in the countries such as the U.S., Canada, Germany, Spain, and France bolstering the raw tobacco leaves the market in this region.
The Middle East and Africa is also a prominent region in the raw tobacco leaves market. Owing to continuously increasing disposable income and rising demand for tobacco-based products boosting the raw tobacco leaves market in this region.
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