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Tobacco Growing in China Industry Research Report – Now Available from IBISWorld
Date:6/16/2013

San Francisco, CA (PRWEB) June 16, 2013

Tobacco is grown in over 125 countries around the world on over four million hectares of land, a quarter of which are in China. Since the 1960s, the bulk of production has moved from the Americas to Africa and Asia. Land devoted to tobacco growing has been halved in the United States, Canada and Mexico, but has almost doubled in China, Malawi and Tanzania, says IBISWorld.

Tobacco leaf production in China is set to total 3.0 million tons in 2013, with flue-cured tobacco leaves accounting for about 89.2% of the total. Revenue for the Tobacco Growing industry in China has been growing at an annualized rate of 4.9% to $6.7 billion over the past five years, says IBISWorld.

The Tobacco Growing industry in China has an extremely low concentration level, as there are an estimated 2.6 million agricultural households in 2013, none of which have any significant market power. This is because the Chinese government fully controls the industry. The government implements its policies and plans for tobacco growing each year depending on the consumption of cigarettes in the previous year.

IBISWorld forecasts that the Tobacco Growing industry in China will develop steadily with rigid market demand and the successful introduction of new technology. Demand from downstream domestic tobacco leaf markets will be the main driver for industry development as well as quality improvements in tobacco leaf production. However, the growing pace is forecast to slow mainly due to the issuance of China's Tobacco Control Programmes at the
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