US tobacco smoking market to decline by 1%

Volume sales within the US tobacco smoking market have been forecast to decline by approximately 1% though to 2016 to 15,779 tonnes, witnessing fairly strong value growth of 11% over the next five years.

While pipe tobacco will experience relatively strong growth, these gains will be largely offset by a decline of 37% in volume sales of RYO between 2011 and 2016. This forecast is, however, subject to legislative changes which may take place in the short term.

Pipe smoking has a long history in the US, with the habit being more common among the elderly. The practice was more popular in the early-to-mid 20th century, before cigarette smoking became widespread.

Small grocery retailers, comprising convenience stores, independent small grocers and forecourt retailers, was the leading distribution channel for smoking tobacco in 2011 with a 66% share of volume sales. Tobacco specialists was the next largest channel, with 22% of volume sales, up marginally on 2010.

Scandinavian Tobacco Group subsidiary Lane Ltd was the leading player in the US tobacco smoking market during 2011, with a volume share of 10%. Its leading position is due in part to the fact that it is the only player with a significant presence in both RYO and pipe tobacco, holding a volume share of 26% in RYO and 5% in pipe tobacco.

Lane's Bugler RYO tobacco holds the leading brand volume share of 13% within RYO tobacco, while its Captain Black brand holds the leading brand volume share within pipe tobacco, of 3%.

Scandinavian Tobacco Group (STG) acquired Lane Ltd from Reynolds in March 2011, with all tobacco smoking brands transferring ownership.

For more information on the US tobacco smoking market, see the latest research: US Tobacco Smoking Market Report

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