CNTC: Worlds Largest Producer of Tobacco Products : Ken Research

Ken Research has announced its distribution of research title, “Tobacco Company Profile – The China National Tobacco Corporation (CNTC)” which provides extensive and highly detailed current and future market trends in the cigarette market.

The report covers market size and structure along with per capita and overall consumption and also focuses on brand data, retail pricing, prospects, and forecasts for sales and consumption. It helps the users get a detailed understanding of consumption for aligning their sales and marketing efforts with the latest trends in the market and identifies the areas of growth and opportunities, which will further aid in effective marketing planning. It aids in comprehending the market dynamics and gives all the essential data to benchmark their position and to further identify where to compete in the future.

Key Dynamics

The China National Tobacco Corporation (CNTC)is a Chinesestate-owned manufacturer of tobacco products and enjoys a virtual monopoly in China, which reckons for roughly 30% of the world’s total consumption of cigarettes, and is the world’s largest manufacturer of tobacco products measured by revenues.

The CNTC has its headquarters in Beijing, with 510,000 employees and recently reckons for 45.2% of the global cigarette market.

It has prolonged to be the largest cigarette producer in the world, with domestic and export sales that totaled 2,589.08 billion pieces in the year 2015, which was around two and a half times that of the world’s leading multinational tobacco companies that included Philip Morris International and British American Tobacco.

It is greatly based on its home market and takes out 98.7% of its overall sales volume from domestic sales and outside of China i.e. its home market, the CNTC and its subsidiaries are having a number of ventures which are evolving, though these are relatively small scale.

Up to 75% of China’s population still resides in rural farming regions, and they simply cannot afford buying high or even mid-priced cigarettes. Therefore, Class D quality cigarettes enjoy the highest production rates in China, while Class C quality cigarettes bring in the largest gross profit. However, high-quality national brands do exist in China, though they are hard to find in rural areas without reputable retailers.

In the future years as well, the company is expected to flourish well in terms of revenue generation and ultimately producing major portion of the concerned industry’s profits.

Topics Covered in the Report