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Tobacco Revolution: Pan For Gold in A 700 Billion Dollars Market

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Tobacco Revolution: Pan For Gold in A 700 Billion Dollars Market

  • 2020-08-16

Traditional tobacco——the sole Commodity in the world which does us no good while legalized for sales globally,there is nothing in the world so contradictory as tobacco.

On the one hand,it comprises a tobacco market which is  worth about 700 billion dollars and generates significant tax revenue for many countries.On the other hand,it claims 5 million lives every year,it’s the most annoying public health problem presented to human health and the health department of many countries.

heated tobacco

Tobacco industry has a long history of 3,000 years,it was first discovered by Indians and shipped to Asia and Africa by Europeans who came to New World,it became global crop and consumer goods since then.During the Industrial Revolution period,with the development of blended tobacco and manufacture of industrialized rolling tobacco,the way of taking in nicotine changed from nose,month to lung,which is more addictive and harmful.After two world wars,the uprising feminism and tobacco advertisements,tobacco is so common,it’s estimated that there are 1.1 billion smokers in the world.

Things changed 50 years ago when scientists found out the connection between smoking and cancer,then tobacco is labeled as a first-class killer of human health.

Health department around the world advocated the harm of smoking,the government rose tobacco taxation,people who fell victim of tobacco began to claim for compensation and big companies like Pfizer also desires to share a piece of pie from the anti-smoking campaign.

e cigarettes brands

But tobacco industry involves about 1 billion people and hundreds of billions of dollars,which make it hard to implement such campaign.At the same time,tobacco is addictive in nature,consumption of tobacco remain immutable under changing price.The amount of smokers in the world maintained 1.1 billion.

After various forms of effort, Smokeless electronic cigarette which is interesting and more safe attracted many scientists.In 2003,a Chinese named Han Li innovated the first generation of electric cigarette after ten years of development,this industry has entered a relatively mature stage.In additional,the adoption of heat nit burn and nicotine salt has also led it to a flavor closer to traditional tobacco.The development of heated tobacco product and electric cigarette pose great threat to traditional tobacco industry and contribute to the transformation of business model of many top players.

Heated tobacco product is the result of consumer’s choice rather than tobacco company’s self-awareness.Heated tobacco product is also more economical compared to traditional cigarette,it’s said that it costs one’s living expense for a week to purchase a pack of cigarette in Australia.

Although it’s not yet paralleled to traditional cigarette in revenue,but according to data from P&S Market,the scale of heated tobacco industry would rise up to 48 billion dollars,with an CAGR of 25.99%.

Another good news for heated tobacco industry is that the US FDA has authorized sales of heated tobacco in America,the industry will thrive in the future.

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