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Raw Tobacco Leaves Market Research Report - Global Forecast till 2027

Global Raw Tobacco Leaves Market: Information By Leaf Type (Virginia, Oriental, Burley and Blends), Buying Module Type (Farmers, Auction and Leaf Merchants), Application (Smoking Tobacco {Cigarettes, Roll-Your-Own, Cigars, Water Pipes and E-Cigarettes & Vapes}, Chewing Tobacco, Moist & Dry Snuff and Dissolvable Products) and Region (North America, Europe, Asia-Pacific and Rest of the World) - Forecast till 2027

ID: MRFR/F-B & N/8871-CR | February 2021 | Region: Global | 100 Pages         

Raw Tobacco Leaves Market

Raw Tobacco Leaves Market is projected to present a 1.48% CAGR to reach USD 20789 Million by 2027


By Leaf Type Virginia Oriental Burley Blends
Buying Module Type Farmers Auction Leaf Merchants
By Application Smoking Tobacco Chewing Tobacco Moist & Dry Snuff Dissolvable Products

Key Players

  • Atmiya International
  • Leafcon International
  • BTA- British American Tobacco
  • Whole Leaf Tobacco
  • Universal Corporation
  • Alliance One International
  • Associated Tobacco Company


  • The growing illicit trade of tobacco is likely to hamper
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Market Overview

Global Raw Tobacco Leaves Market Reached USD 8.54 Million Tons, Which Was Quite Impressive. Looking forward, the market experts believe that the global raw tobacco leaves market size will demonstrate a stable growth in the coming years, at least till 2026. It has been predicted that by the end of 2026, the market is projected to reach USD 20789 Million. Besides, during the forecast period, the CAGR- Compound Annual Growth Rate would be 1.48 percent.

Tobacco products are produced by curing the raw tobacco leaves, which is a part of the genus Nicotiana of the Solanaceae family. As per the experts, there are around 70 different species of tobacco. Tobaccos mad of tobacco leaves contain nicotine and volatile alkaloid, that is responsible for stimulating brain function. Dried raw tobacco leaves are widely used for smoking in cigarettes, shisha, pipes, cigars, and more.  Tobacco product producers combine various flavoring and additives to the tobacco leaves to make them consumable.

Inclination towards the use of different anti-depressants and stimulants, rapidly changing lifestyles as well as a growing population are some of the significant factors that can be responsible for the growth of the raw tobacco leaves market size.

If you consider the raw tobacco leaves market forecast, this particular market will emerge lucrative for the active vendors. The primary reason behind this can be the continuous innovation in this sector and some government initiatives regarding the selling of tobacco leaves.

COVID-19 Analysis for The Market

The market is severely affected by the outbreak of COVID-19. The condition has significantly disrupted the demand for tobaccos. In various countries, tobacco products are classified as non-essential items, and this has led to decreased supply of raw tobacco leaves as well as products across the globe.

The raw tobacco leaves market share has also gone down as retail sales of these products have gone down. Considering a lower market trend, the tobacco product manufacturers have also lowered their production capacity to deal with operational costs.

Furthermore, COVID-19 has been declared a respiratory disease and creates issues in breathing. So, for now, people are avoiding tobacco products. Besides, cigarette smokers are being advised to stop smoking to lower the risk of getting infected by the virus. So, it can be said that the market growth rate in the future can be severely affected due to the ongoing COVID-19 situation.

Global Raw Tobacco Leaves Market Revenue, by Leaf Type, 2026 (USD Million)
Raw Tobacco Leaves Market

Sources: MRFR Analysis

Raw Tobacco Leaves Market Dynamics

The Market Drivers

Even though the recent COVID-19 condition has affected the market, the experts have predicted that very soon the things will back to normal. So, that can be a good indication for this market. Besides, the demand for tobacco products has witnessed a sharp shift to the developing countries from the developed countries. Increasing consumption of cigarettes in the medium and low-income people segment can be a primary factor triggering the market growth. The rising income levels can also be a propelling factor.

Furthermore, the introduction of different premium tobacco products, for example, flavored cigarettes and e-cigarettes by well-known manufacturers, have further made a positive outlook for the raw tobacco leaves market growth.

Some companies are now making considerable investments in research and development to introduce tobacco products with a smaller number of toxicants. This will also help in attracting a more extensive consumer base for this market during the projected period.

Market Opportunities

It has been predicted that the market will become very lucrative for every raw tobacco leaves market supplier due to different initiatives taken by governments for selling tobacco leaves.  Keeping in mind the growing demand for quality tobacco products, manufacturers are now introducing effective marketing campaigns. Well, this will create a growth opportunity.

Larger tobacco product manufacturers can utilize economies of scale and can offer different products. On the other hand, new and smaller companies are now focusing on attractive discounts, creative packaging, branding, and covering some niche categories, for example, additive-free cigarette, pipe tobacco, and more. All these things will create market growth opportunities. It may be noted that this is a consolidated market, so the growth will depend on the demand for the final products.


As per the market research experts, higher levels of education and raising awareness about different health issues caused by tobacco products, like pulmonary diseases, cardiovascular diseases, cancers, and more, has greatly hampered the market growth. On the other hand, the increasing illicit trade of tobacco products will also affect the growth of the raw tobacco leaves market trends. What's more? The strict regulations rolled out in the developed countries can also affect the market growth adversely.


Speaking about the key challenges in this market, all the tobacco product manufacturers are now facing a challenge globally where the rising health concerns have affected the sales rates of cigarettes. Besides, various legal threats have also become a headache for them.

Cumulative growth analysis of the market

Cigarettes have become a popular tobacco product among people across the world. Besides, keeping in mind the changing trend, tobacco product manufacturers are also introducing flavored products. So, such initiatives can drive market growth. Besides, increasing income level will also create a positive impact.

Considering all these things, the experts have forecasted that the market value will increase to USD 20,160.12 by 2026. During the projected period, i.e., from 2020 to 2026, the CAGR will be 1.46 percent.

Market Segment Overview

The global raw tobacco market has been segmented into buying module, leaf type, application, and region.

Market segmentation by leaf type

Under this, the global market is classified into Burley, Virginia, Blends, and Oriental. As per the experts, in 2019, the Virginia segment witnessed a significant raw tobacco leaves market share. By the end of 2026, the value will be USD 14.180.87 million. Cigarette made of Virginia leaf is famous in South Africa, the UK, Pakistan, China, India, and more.

Market segmentation by buying module.

On the basis of buying module, the entire market is categorized into farmers, auction, and leaf merchants. During the forecast period, the leaf merchant segment would witness a huge market share.

Market segmentation by application

Under this, the market is segmented into dry snuff, smoking tobacco, and moist. The smoking tobacco segment has further divided into cigars, water pipes, vapes, cigarettes, chewing, and tobacco.

Regional Market Analysis

In 2019, the Asia-Pacific region witnessed the largest market share of the global raw tobacco leaves market. On the other hand, China is the major consumer of raw tobacco leaves. The demand for a cigarette has declined, but China is now focusing on selling e-cigarette. This will propel market growth.

Europe accounted for a considerable share of the global market in the year 2019 and is projected to be a lucrative regional market for raw tobacco leaves producers during the projected period.

Furthermore, Africa has emerged as a significant tobacco leaves producer in the world and has the ability to satisfy the growing demand.

North America covered a decent market share in the year 2019. The primary reason behind that was the presence of multiple well-known tobacco product manufacturers. However, it is projected that the Asia-Pacific region will again dominate the market in the coming days, especially during the forecasted period.

Report Overview

The global raw tobacco leaves market analysis overview is as follows:

  • Market overview

  • COVID-19's impact on the market analysis

  • Market dynamics analysis

  • Discussion about market segmentation

  • Regional market analysis

  • Analysis of competitive landscape

  • Recent developments in the industry

This in-depth market analysis report includes all the essential information about the global market for raw tobacco leaves. It also covers the challenges and opportunities that can influence market growth.

Analysis of market's competitive Landscape

The key players who are currently dominating the market are:

  • Atmiya International

  • Leafcon International

  • BTA- British American Tobacco

  • Whole Leaf Tobacco

  • Universal Corporation

  • Alliance One International

  • Associated Tobacco Company

The prominent players are now focusing more on investing in R&D and adopting some growth strategies, for example, partnerships, agreement, expansion, and more, to boost their businesses.

Recent market development

  • On 11th March 2021, British American Tobacco announced that the company would buy around 20 percent stake in the OrganiGram, a Canada-based cannabis producer. This will help in business growth.

  • On 20th February 2021, BAT informed that the company had invested more than £1bn in a campaign to harness the popular appeal of pop stars, sporting events, and social media influencers to promote its products.

Segment Table

By leaf

  • Virginia

  • Burley

  • Oriental

  • Blends

By buying module

  • Auction

  • Leaf merchants

  • Farmers

By Applications

  • Smoking tobacco

  • Dry snuff

  • Moist

  • Dissolvable products

By Region

  • North America

  • Asia-Pacific

  • Europe

  • Middle East & Africa

  • Others

Report Scope:

Report Attribute/Metric Details
  Market Size   USD 20,789 Million (2026)
  CAGR   1.48% (2018-2026)
  Base Year   2019
  Forecast Period   2027
  Historical Data   2018
  Forecast Units   Value (USD Million)
  Report Coverage   Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
  Segments Covered   Leaf Type, Buying Module Type, Application
  Geographies Covered   North America, Europe, Asia-Pacific, and Rest of the World (RoW)
  Key Vendors   Star Tobacco International (Turkey), Atmiya International (India), Leafcon International (India), Leaf Only (US), Whole Leaf Tobacco LLC (US), Sopariwala Exports (India), NYC Tobacco Leaf LLC (US), Leaf 2 Smoke (Canada), Tobacco and Tubes (India), Capital Tobacco Ltd (Bulgaria), Universal Corporation (US), U.S. Tobacco Cooperative Inc. (US), Alliance One International, Inc. (US), and Associated Tobacco Company Ltd. (India).
  Key Market Opportunities   Increasing consumption of cigarettes in low- and medium-income countries
  Key Market Drivers   the growing illicit trade of tobacco is likely to hamper

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Frequently Asked Questions (FAQ) :

This market analysis report on the global raw tobacco leaves market covers all the major segments like the leaf, buying modules, application, and region.

The global market for raw tobacco leaves is projected to touch USD 20,789 million by the end of 2026, with a CAGR rate of 1.48%.

Increasing consumption of tobacco products in middle and low -income countries will be the primary growth factor of the market.