“It’s always challenging to determine the long-term growth rate of any industry. Inevitably, things change and forecasts can often prove inaccurate,” is the article’s opening statement. However, it continues, things are different in the tobacco industry, where the decrease in the popularity of smoking does not need to mark the end of the industry.
As consumers across the developed word become more health conscious, and smoking is becoming less and less popular, more smokers are deciding to curb the habit. However, points out the article, although to many this would mean less smokers, due to the population growth especially in non-developed countries, the number of smokers may still rise instead of diminish. “This could create a tailwind for tobacco companies, who may be able to generate higher volumes even with the threat of plain packaging and higher duty by governments across the globe”.
Heavy investments in harm reduction alternatives
Additionally, thanks to the advent of vaping products, tobacco companies are now able to offer their consumers a safer alternative. In fact the major players in the industry, namely BAT (British American Tobacco), PMI (Philip Morris International) and Japan Tobacco are all investing heavily in these technologies, with PMI going as far as stating that its aim to eventually stop selling regular cigarettes. Taking all this in consideration, “the tobacco industry could become the fastest-growing sector in the world. As such, now may be the perfect time to consider investing in it,” concluded the article.