South Korea Tobacco Market Insights Forecasts to 2033

• The South Korea Tobacco Market Size was valued at USD 9104 Million in 2023
• The Market Size is Growing at a CAGR of 0.73% from 2023 to 2033
• The South Korea Tobacco Market Size is Expected to Reach USD 9792 Million by 2033

The South Korea Tobacco Market Size is expected to reach USD 9792 Million by 2033, at a CAGR of 0.73% during the forecast period 2023 to 2033.

Market Overview

Tobacco, also known as Nicotiana tabacum, is a plant produced largely for its leaves, which contain the extremely addictive chemical nicotine. endemic American societies have historically utilized it; it is endemic to the Americas. There are other ways to consume tobacco products, such as chewing and snuff, as well as cigarettes, cigars, and pipe tobacco. Planting seeds in well-prepared fields, raising them into seedlings, and then moving them to bigger fields when they are mature are the steps in the cultivation process. The leaves are meticulously picked by hand, and then they are dried using techniques including air-curing, flue-curing, fire-curing, or sun-curing. In addition, tobacco's nicotine component stimulates the release of dopamine and other neurotransmitters, which results in a calming and enjoyable feeling. Furthermore, the tobacco market in South Korea is impacted by the dynamic interaction of shifting consumer habits, cultural traditions, and changing regulatory environments. Even though the country's smoking rates are high, societal standards and cultural acceptance continue to fuel a sizable tobacco sector. Moreover, a major growth-inducing aspect is the continued rise in popularity of various tobacco products, such as cigars, smokeless alternatives, and cigarettes. Such factors are is driving up market growth in South Korea.

Report Coverage

This research report categorizes the market for South Korea tobacco market based on various segments and regions and forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the South Korea tobacco market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segments of the South Korea tobacco market.

Driving Factors

The increase of heated tobacco products and electronic cigarettes (also known as "e-cigarettes") is indicative of an emerging trend, and South Korea has adapted to these substitutes, supporting the expansion of the industry throughout the nation. In addition, strict laws governing packaging and advertising have an additional effect on the market by highlighting health warnings and restricting promotional activities. The tobacco market in South Korea will continue to change in the forecast period, combining both conventional and novel aspects, as the country works to balance cultural customs with health concerns.

Restraining Factors

Companies are launching new items that are far less damaging than traditional ones in order to sustain demand in country. Thus, such factors are hampering the market growth in the forecast period.

Market Segment

• In 2023, the cigarettes segment accounted for the largest revenue share over the forecast period.

Based on the type, the South Korea tobacco market is segmented into smokeless, and cigarettes. Among these, the cigarettes segment has the largest revenue share over the forecast period. Cigarette demand has remained consistent due to factors such as the introduction of flavored and menthol cigarettes, as well as the availability of smaller-sized cigarettes for people looking to reduce their smoking habits. Cigarette consumption is inelastic despite high global taxes, which has significantly fueled industry expansion. The demand for flavored and unflavored cigarettes has increased recently in South Korea among millennials and working-class groups, who are big fans of partying and pub culture.

• In 2023, the offline segment accounted for the largest revenue share over the forecast period.

On the basis of distribution channel, the South Korea tobacco market is segmented into offline, and online. Among these, the offline segment has the largest revenue share over the forecast period. Hypermarkets, supermarkets, convenience stores, and department stores are among the retail venues that provide considerable discounts to customers. Furthermore, these outlets' close closeness to customers' locations makes it easier to immediately satisfy their desires for tobacco use, which is fueling the segment's growth.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the South Korea tobacco market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Medicat Co., Ltd.
• Rainbow Bo Co., Ltd.
• Korea Tabako International
• Royal Tobako Co., Ltd.
• Korea Joeun Tobacco Co., Ltd.
• Uwa Co., Ltd.
• Double Ryu TI Co., Ltd.
• Others

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Market Segment

This study forecasts revenue at regional, and country levels from 2022 to 2033. Spherical Insights has segmented the South Korea Tobacco Market based on the below-mentioned segments:

South Korea Tobacco Market, By Type

• Smokeless
• Cigarettes

South Korea Tobacco Market, By Distribution Channel

• Offline
• Online