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Tobacco Leaf Processing in China Industry Data and Analysis
The Tobacco Leaf Processing industry in China is expected to decrease at a CAGR of 0.6% over the five years through 2024, including -0.8% in 2024, to reach $2.7 billion. The industry has benefited from continued improvements in processing technology over the period. However, government-imposed bans on smoking in public areas have limited demand from downstream cigarette manufacturers. More than 20 cities in China have implemented comprehensive smoking bans in indoor public places through specialized smoking control legislation, which negatively affected industry sales.The State Council implements national monopoly on tobacco. Industry operators conduct tobacco leaf processing according to the annual tasks specified by the provincial-level branches of State Tobacco Monopoly Administration (STMA). The cross regional allocation activities of tobacco leaf processing capacity are also managed by STMA. Industry enterprises will decrease at an average rate of 2.4% in the past five years to 2024, all under the management of China National Tobacco Corporation on behalf of STMA. Merger and acquisition activities between tobacco leaf processing companies are all organized by the Government. STMA has proposed to reorganize and integrate industry firms on a provincial basis since 2009. Industry establishment numbers are expected to stay unchanged at 60 in the past five years.International trade is dynamic for the industry. Competing imports are expected to increase by 8.2% total $1.9 billion in 2024, and account for 45.9% of domestic demand. Chinese companies will likely be able to satisfy more of this high-end domestic demand in the future due to improved technology. Industry exports will decrease at an average rate of 4.8% in the period, to $450.9 million, representing 16.8% of industry revenue in 2024.Industry revenue is forecast to increase at a CAGR of 0.5% over the five years through 2029, to $2.7 billion. This trend is largely due to forecast steady increases in both domestic and foreign demand. The Government is encouraging redrying enterprises to restructure to improve production efficiency and product quality during the 14th Five-Year period (2021-2025). Blended threshing and other new technologies for redrying will become more commonplace. Consequently, creative product categories will present more opportunities for revenue growth compared with production expansion.
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What's included in this industry analysis
IBISWorld's research coverage on the Tobacco Leaf Processing industry in China includes market sizing, forecasting, data and analysis from 2014-2029. The most recent publication was released May 2024.
About this industry
What's this industry report about?
The Tobacco Leaf Processing industry in China operates under the industry code 1610. Companies in the Tobacco Leaf Processing industry primarily stem and redry tobacco. The methods of redrying include stick redrying and threshing redrying. The stick redrying process involves hanging tobacco leaves on sticks inside a redrying machine or bulk curing barn. The threshing redrying method involves separating the leaves from the stems through a threshing machine before redrying them separately. Related terms covered in the Tobacco Leaf Processing industry in China include threshing and redrying, blended threshing and stma.
What's included in this industry?
Products and services covered in Tobacco Leaf Processing industry in China include Tobacco strips, Tobacco stems and Tobacco fragments.
What companies are included in this industry?
Companies covered in the Tobacco Leaf Processing industry in China include Yunnan Tobacco Redrying Co., Ltd., Guizhou Tobacco Redrying Co., Ltd. and Sichuan Tobacco Redrying Co., Ltd.
Performance
What's included in the Performance chapter?
The Performance chapter covers detailed analysis, datasets, detailed current performance, sources of volatility and an outlook with forecasts for the Tobacco Leaf Processing industry in China.
Questions answered in this chapter include what's driving current industry performance, what influences industry volatility, how do successful businesses overcome volatility, what's driving the industry outlook. This analysis is supported with data and statistics on industry revenues, costs, profits, businesses and employees.
Products & Markets
What's included in the Products and Markets chapter?
The Products and Markets chapter covers detailed product and service segmentation, analysis of major markets and international trade data for the for the Tobacco Leaf Processing industry in China.
Questions answered in this chapter include how are the industry's products and services performing, what are innovations in industry products and services, what products or services do successful businesses offer and what's influencing demand from the industry's markets. This includes data and statistics on industry revenues by product and service segmentation and major markets.
Geographic Breakdown
What's included in the Geographic Breakdown chapter?
The Geographic Breakdown chapter covers detailed analysis and datasets on regional performance of the Tobacco Leaf Processing industry in China.
Questions answered in this chapter include where are industry businesses located and how do businesses use location to their advantage. This includes data and statistics on industry revenues by location.
Competitive Forces
What's included in the Competitive Forces chapter?
The Competitive Forces chapter covers the concentration, barriers to entry and supplier and buyer profiles in the Tobacco Leaf Processing industry in China. This includes data and statistics on industry market share concentration, barriers to entry, substitute products and buyer & supplier power.
Questions answered in this chapter include what impacts the industry's market share concentration, how do successful businesses handle concentration, what challenges do potential industry entrants face, how can potential entrants overcome barriers to entry, what are substitutes for industry services, how do successful businesses compete with substitutes and what power do buyers and suppliers have over the industry and how do successful businesses manage buyer & supplier power.
Companies
What's included in the Companies chapter?
The Companies chapter covers Key Takeaways, Market Share and Companies in the Tobacco Leaf Processing industry in China. This includes data and analysis on companies operating in the industry that hold a market share greater than 5%.
Questions answered in this chapter include what companies have a meaningful market share and how each company is performing.
External Environment
What's included in the External Environment chapter?
The External Environment chapter covers Key Takeaways, External Drivers, Regulation & Policy and Assistance in the Tobacco Leaf Processing industry in China. This includes data and statistics on factors impacting industry revenue such as economic indicators, regulation, policy and assistance programs.
Questions answered in this chapter include what demographic and macroeconomic factors impact the industry, what regulations impact the industry, what assistance is available to this industry.
Financial Benchmarks
What's included in the Financial Benchmarks chapter?
The Financial Benchmarks chapter covers Key Takeaways, Cost Structure, Financial Ratios, Valuation Multiples and Key Ratios in the Tobacco Leaf Processing industry in China. This includes financial data and statistics on industry performance including key cost inputs, profitability, key financial ratios and enterprise value multiples.
Questions answered in this chapter include what trends impact industry costs and how financial ratios have changed overtime.
Industry Data
What's included in the Industry Data chapter?
The Industry Data chapter includes 10 years of historical data with 5 years of forecast data covering statistics like revenue, industry value add, establishments, enterprises, employment and wages in the Tobacco Leaf Processing industry in China.
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Frequently Asked Questions
What is the market size of the Tobacco Leaf Processing industry in China in 2026?
The market size of the Tobacco Leaf Processing industry in China is $2.7bn in 2026.
How many businesses are there in the Tobacco Leaf Processing industry in China in 2024?
There are 23 businesses in the Tobacco Leaf Processing industry in China, which has declined at a CAGR of 2.4 % between 2019 and 2024.
How may import tariffs affect the Tobacco Leaf Processing industry in China?
The Tobacco Leaf Processing industry in China is likely to be significantly impacted by import tariffs with imports accounting for a high share of industry revenue.
How may export tariffs affect the Tobacco Leaf Processing industry in China?
The Tobacco Leaf Processing industry in China is likely to be impacted by export tariffs with exports accounting for a moderate share of industry revenue.
Has the Tobacco Leaf Processing industry in China grown or declined over the past 5 years?
The market size of the Tobacco Leaf Processing industry in China has been declining at a CAGR of 0.6 % between 2019 and 2024.
What is the forecast growth of the Tobacco Leaf Processing industry in China over the next 5 years?
Over the next five years, the Tobacco Leaf Processing industry in China is expected to grow.
What are the biggest companies in the Tobacco Leaf Processing industry in China?
The biggest companies operating in the Tobacco Leaf Processing industry in China are Yunnan Tobacco Redrying Co., Ltd., Guizhou Tobacco Redrying Co., Ltd. and Sichuan Tobacco Redrying Co., Ltd.
What does the Tobacco Leaf Processing industry in China include?
Tobacco strips and Tobacco stems are part of the Tobacco Leaf Processing industry in China.
Which companies have the highest market share in the Tobacco Leaf Processing industry in China?
The company holding the most market share in the Tobacco Leaf Processing industry in China is Yunnan Tobacco Redrying Co., Ltd..
How competitive is the Tobacco Leaf Processing industry in China?
The level of competition is moderate and increasing in the Tobacco Leaf Processing industry in China.
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