雅虎香港財經 Top 20 Most Valuable Tobacco Companies in the World
In this article, we are going to discuss the top 20 most valuable tobacco companies in the world. You can skip our detailed analysis of the global tobacco market, the effect of taxes on smoking, and the heavy investments in marketing by tobacco companies, and go directly to the Top 5 Most Valuable Tobacco Companies in the World.
Tobacco was first used by the people of pre-Columbian Americas. Archeological studies suggest that the Maya people of Central America started using tobacco leaves as far back as the 1st century BC, mainly for smoking in sacred and religious ceremonies. By the time Columbus arrived in the New World in 1492, the Native Americans were already cultivating and smoking tobacco in pipes, cigars, and snuff. Although Cristopher Columbus brought with him a few tobacco leaves and seeds back to Europe, most Europeans didn't get their first taste of the plant until the mid-16th century, when adventurers and diplomats like France's Jean Nicot – for whom nicotine is named – began to popularize its use. Tobacco was introduced to France in 1556, Portugal in 1558, Spain in 1559, and finally England in 1565. By the early 17th century, smoking was common in all of Europe’s maritime nations, and their colonial empires soon carried tobacco all over the world.
Global Tobacco Market:
According to Research and Markets, the global tobacco market is expected to reach $1.049 trillion by 2030, with a CAGR of 2.1% during the forecast period. The market is fuelled by a growing demand from developing nations, coupled with the rising proliferation of next-generation products (NGPs) across the globe. The high marketing expenditure and discounting of products undertaken by major tobacco companies is also adding to the growth of the industry.
While tobacco consumption is leveling off and even decreasing in some countries, the number of people smoking is still increasing globally, and smokers are smoking more than before. An estimated 1.3 billion people worldwide use tobacco products, 80% of whom are in low- and middle-income countries.
Most Popular Cigarette Brand:
Marlboro, produced by Philip Morris International, is the No. 1 Cigarette Brand in the World. Marlboro Gold Shorts and Marlboro Gold 100's have also been known to be the Best Cigarettes for Women, meanwhile, the Marlboro Light brand has been placed among the Best Cigarettes for New Smokers.
The Effect of Taxes on Smoking:
Most studies have found that increasing cigarette prices through increased taxation is a highly effective measure to reduce smoking among youth and young adults. From 2001 through 2015, increases in state-level excise taxes were associated with significant declines in prevalence of cigarette smoking, with the strongest effect among young adults aged 18 to 24.
However, this strategy hasn’t been very effective for reducing the smoking prevalence among participants with annual income below $25,000, probably due to their limited exposure to cessation treatment and anti-smoking programs. Poor working conditions are also linked to high smoking prevalence. And as both low- and high-income smokers pay the same amount of cigarette tax per pack, the former spend a disproportionately large share of their income on smoking. Thus, since low-income individuals are price-insensitive, raising cigarette taxes and prices would further deepen income disparities.
Heavy Investments in Marketing:
The WHO Framework Convention on Tobacco Control (FCTC) has led to widespread restrictions on tobacco advertising, promotion, and sponsorship around the world. This, coupled with the evidence of the causal role of marketing in the tobacco epidemic, has inspired more than half the countries worldwide to ban some forms of tobacco marketing.
Yet, tobacco companies have found creative ways to maneuver their way around these barriers, using a variety of marketing strategies to create demand for cigarettes and other tobacco products by urging the youth to experiment, reducing smokers’ motivation to quit, and encouraging former smokers to take it up again. According to the Federal Trade Commission, in 2020 alone, the American tobacco industry spent over $8.4 billion on marketing for cigarettes and smokeless tobacco, spending more at the point-of-sale than anywhere else. They spent nearly $66 million on advertisements at the point of sale alone.
However, this hasn’t been without consequences. In September 2023, the e-cigarette company Juul, which at the height of its success dominated the market with its sweet flavors, agreed to pay $438.5 million in a settlement with 33 states and one territory over marketing its product to teens. The case ends major litigation over claims about the marketing of e-cigarettes to adolescents, resolving thousands of lawsuits and amounting to billions of dollars in payouts to states, cities, and people.
Sales of Juul products were sky high a few years ago and the company was even eyeing a market valuation of around $38 billion. However, it was discovered that Juul use among teens and young adults spiked heavily from 2018 to 2019. An estimated 27.5% of high schoolers reported using e-cigarettes during the period, with more than half naming Juul as their brand of choice. To add to the company’s woes, the FDA banned Juul products on U.S. shelves last summer, citing a lack of evidence demonstrating their overall safety. The regulator also noted Juul’s ‘disproportionate role in the rise in youth vaping.’
With that said, here are the Top Tobacco Companies in 2024.
mmoktp/Shutterstock.com
Methodology:
To collect information for this article, we have referred to the Yahoo Finance database, looking for the Most Valuable Tobacco Companies. The following public companies have been ranked by their market capitalization, as of the writing of this piece.
By the way, Insider Monkey is an investing website that tracks the movements of corporate insiders and hedge funds. By using a similar consensus approach, we identify the best stock picks of more than 900 hedge funds investing in US stocks. The top 10 consensus stock picks of hedge funds outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). Whether you are a beginner investor or professional one looking for the best stocks to buy, you can benefit from the wisdom of hedge funds and corporate insiders.
20. 22nd Century Group, Inc. (NASDAQ:XXII)
Market Cap: $6.57 million
22nd Century Group, Inc. (NASDAQ:XXII) is a next-generation plant biotechnology company, focused on improving human health through plant science. Using their breakthrough, patent-protected IP to control nicotine biosynthesis in the tobacco plant, they have developed the first market-ready, reduced nicotine content (RNC) tobacco plants and cigarettes containing 95% less nicotine.
In the year 2022, 22nd Century Group, Inc. (NASDAQ:XXII) reported a revenue of $62.11 million, marking a staggering 100.69% increase compared to the previous year's $30.95 million.
19. Hempacco Co., Inc. (NASDAQ:HPCO)
Market Cap: $7.87 million
Headquartered in California, Hempacco Co., Inc. (NASDAQ:HPCO) is disrupting the tobacco industry by manufacturing and selling nicotine-free and tobacco-free alternatives to traditional cigarettes. The company announced in December that it has entered into an exclusive Master Distribution Agreement with CBDAY Global Private Limited, under the terms of which, the latter will exclusively sell Hempacco Co., Inc. (NASDAQ:HPCO)’s line of hemp and CBD products in India and Thailand, starting with the Cheech & Chong and Rick Ross hemp products.
18. Turning Point Brands, Inc. (NYSE:TPB)
Market Cap: $401.38 million
Turning Point Brands, Inc. (NYSE:TPB) is a manufacturer, marketer, and distributor of branded consumer products including alternative smoking accessories and consumables with active ingredients through its iconic Zig-Zag® and Stoker’s® brands. With its products available in more than 215,000 retail outlets in North America, Turning Point Brands, Inc. (NYSE:TPB) posted a revenue of a little over $415 million in 2022.
17. Ispire Technology Inc. (NASDAQ:ISPR)
Market Cap: $547.14 million
The global leader for vaporizer technology, Ispire Technology Inc. (NASDAQ:ISPR) is engaged in the research and development, design, commercialization, sales, marketing, and distribution of branded e-cigarettes and cannabis vaping products. On February 22nd, Ispire Technology Inc. (NASDAQ:ISPR) announced a joint venture with Berify, looking to expedite innovation in the e-cigarette technology space, including the development of secure, user-friendly solutions for age verification and age-gating nicotine vapor devices.
16. China Tobacco International (HK) Company Limited
Market Cap: $880 million
The Hong Kong-based China Tobacco International (HK) Co. Ltd. is mainly engaged in the sales, import, and export of cigarettes and tobacco leaf products, serving customers primarily from China (the largest tobacco market in the world) and Southeast Asia. The company boasted a revenue of around $1.06 billion in 2022, an increase of 3.2% from the previous year.
15. Universal Corporation (NYSE:UVV)
Market Cap: $1.21 billion
Headquartered in Richmond, VA, Universal Corporation (NYSE:UVV) is a leading global supplier of leaf tobacco, operating in more than 30 countries spanning five continents. Its primary subsidiary, Universal Leaf Tobacco Company, Incorporated, is responsible for the largest portion of its business – the procurement and processing of a variety of leaf tobaccos and providing supply chain services to manufacturers of consumer tobacco products. Stocks of Universal Corporation (NYSE:UVV) were held by 8 hedge funds in the Insider Monkey database at the end of Q4 2023, with Pzena Investment Management holding the largest stake of around 1.1 million shares, valued at around $73.18 million.
14. Scandinavian Tobacco Group A/S
Market Cap: $1.55 billion
The Copenhagen-based company offers a range of products including handmade cigars, pipe tobacco, machine-made cigars, fine-cut tobacco, CMA cigars, fire products, tubes, and paper. Founded in 1961, the Scandinavian Tobacco Group boasts a portfolio of around 200 leading FMCG brands and a workforce of over 10,000 around the globe.
With a revenue of over $1.27 billion in 2022, the Scandinavian Tobacco Group is counted among the Richest Tobacco Companies in the World.
13. Vector Group Ltd. (NYSE:VGR)
Market Cap: $1.76 billion
Vector Group Ltd. (NYSE:VGR) is a diversified holding company with business interests in tobacco and real estate. The Miami-based company manufactures and markets a range of discount cigarettes through subsidiaries such as Liggett Group LLC and Vector Tobacco LLC. The company boasted a revenue of over $1.44 billion in 2022 and impressively, has grown its EPS by 31% per year, compound, in the last three years.
Vector Group Ltd. (NYSE:VGR) ranks among the 11 Best Tobacco and Cigarette Stocks to Buy.
12. Philip Morris CR a.s.
Market Cap: $1.83 billion
Listed on the Prague Stock Exchange, Philip Morris ČR is a subsidiary of Philip Morris International and the largest producer and seller of tobacco products in the Czech Republic. Formerly known as Tabák, a.s., the company provides its products under some of the Top Cigarette Brands, including Marlboro, L&M, Philip Morris, Petra Klasik, Sparta, and Chesterfield.
11. Eastern Company SAE
Market Cap: $2.45 billion
Eastern Co. SAE is the biggest manufacturer of tobacco products in Egypt and controls around 70% of the country’s tobacco market. It was one of the first companies listed on the government’s privatization program, which aims to increase foreign currency inflows amid Egypt’s economic crisis. The Egyptian tobacco giant made headlines last year after Global Investment Holdings, an Emirati firm founded just last summer, acquired a 30% stake in it for $625 million.
Eastern Company SAE is ranked among the Largest Tobacco Companies in the World.
10. PT Gudang Garam Tbk
Market Cap: $2.48 billion
Established in 1958, PT Gudang Garam Tbk is one of Indonesia's leading cigarette manufacturers, best known for its kretek clove cigarettes. The company produces over 70 billion cigarettes annually but its share of the domestic market has steadily declined over the last decade to around 20%, as it comes under pressure from rivals such as HM Sampoerna.
9. RLX Technology Inc. (NYSE:RLX)
Market Cap: $3.1 billion
Headquartered in China, RLX Technology Inc. (NYSE:RLX) is a leading branded e-vapor company that leverages its in-house technology and product development capabilities into adult smokers' needs to develop superior e-vapor products
RLX Technology Inc. (NYSE:RLX) is placed among the Goldman Sachs Penny Stocks: Top 12 Picks.
8. PT Hanjaya Mandala Sampoerna Tbk
Market Cap: $6.37 billion
Founded in 1913, Sampoerna is Indonesia's leading tobacco company controlling about 35% share of the country’s tobacco market. The Surabaya-based company owns seven kretek manufacturing facilities in Indonesia and also distributes the famous Marlboro tobacco brand in the domestic market. PT Hanjaya Mandala Sampoerna Tbk was acquired by Philip Morris in 2005.
With a total annual consumption of 192,905 tons, Indonesia is placed among the Countries with the Highest Tobacco Consumption in the World.
7. KT&G Corporation
Market Cap: $7.88 billion
KT&G Corporation is a Korea-based company primarily engaged in the production and sale of cigarettes. Founded as Korea Monopoly by the South Korean government in 1987, the company was later privatized and listed on the South Korean stock market in 1999.
In October 2023, KT&G held a groundbreaking ceremony for its new state-of-art manufacturing plant in Kazakhstan. The new facility is expected to serve as the company’s manufacturing innovation hub in Eurasia and accelerate its long-term vision of becoming a ‘Global Top-tier’ company.
With a revenue of $4.45 billion in 2022, KT&G is ranked among the Tobacco Companies that Make the Most Money.
6. Imperial Brands PLC
Market Cap: $20.2 billion
With annual sales of 500 billion cigarettes in 160 countries, Imperial Brands PLC is one of the top 10 tobacco companies in the world. The company’s major brands include JPS, Parker & Simpson, West, Davidoff, Winston, blu, Knox, Montecristo, Pulze, Gauloises, iD, and Skruf. BAT also boasts around 24 million adult consumers globally of its new-category products that include heated cigarettes and oral nicotine products. The goal is to achieve 50 million adult consumers by 2030.
Click to continue reading and see the Top 5 Most Valuable Tobacco Companies in the World.
Suggested Articles:
Disclosure: None. Top 20 Most Valuable Tobacco Companies in the World is originally published on Insider Monkey.
