10.2 The global tobacco manufacturing industry

10.2.2 Major multinational tobacco companies

10.2.2.1 Philip Morris International

Philip Morris International (PMI) is the equal-largest of the multinational tobacco companies, in terms of overall global tobacco market share.⁵ PMI also has the largest share of the global cigarette market of any multinational corporation, accounting for 23.5% of global cigarette sales volumes in 2024 (excluding China and the U.S.).⁶ Philip Morris International sells cigarettes in approximately 170 countries, and owns the most popular and valuable tobacco brand in the world, Marlboro. Philip Morris international is headquartered in Switzerland. It’s US arm, Philip Morris USA (formerly Altria) operates in the US market. The Marlboro brand was worth US$82 billion in 2018 and accounted for 10.1% of the international cigarette market (excluding China and the US) in 2024.⁶ In 2018, Philip Morris reported an 25.3% share of ‘the international cigarette category’ and owned 6 of the top 15 global cigarette brands including L&M, Chesterfield and Bond Street.^6,7

Philip Morris International has invested heavily in ’reduced risk products’, including launching its flagship heat-not-burn tobacco product, iQOS, in 2014, and the acquisition of a 35% stake in the e-cigarette manufacturer Juul by Altria.⁸ (See also Section InDepth 18B Heated tobacco products). In 2024, 61.3% of PMI’s net revenue was derived from combustible tobacco with the remaining 38.7% from smokefree products, with smokefree products in 95 countries.⁹

10.2.2.2 British American Tobacco 

British American Tobacco Plc (BAT) ranks as the equal-largest transnational tobacco company in terms of cigarette sales volumes after Philip Morris International, at 12% in 2020, and operates in more than 200 countries.¹⁰ As of 2024, BAT owned 67 product manufacturing facilities worldwide,¹¹ 37 of which were cigarette factories.¹² BAT divides is operations across three regions: Americas and Europe, Asia Pacific, Middle East and Africa, and the United States.

British American Tobacco has around 300 brands in its portfolio, and the company regards Dunhill, Kent, Lucky Strike, Rothmans and Pall Mall as its most important 'Global Drive' brands. Since 2005, British American Tobacco has also become active in the market for Swedish-style snus,¹³ and has also invested heavily in what it terms ‘potentially reduced risk products’, including so-called vapour products (e-cigarettes) and heat-not-burn products.¹⁴ In its 2024 annual report, BAT reported that 80.0% of its global revenue was derived from combustible tobacco products (from 505 billion cigarette sticks, down from 555 billion in 2023), 13.3% from ‘new categories’, 4.2% from traditional oral tobacco, and 2.5% from ‘other’.¹² For further information on snus, see  Section 3.33 and Chapter 18 E-cigarettes and other alternative nicotine products. In 2024, BAT reported expanding its Wellbeing and Stimulation business, including developing a range of ‘wellbeing shots’ in Australia called Ryde.¹²

10.2.2.3 Japan Tobacco Inc

Japan Tobacco Inc grew from a largely domestic company to an international one through acquisition of other companies and brands. At 2020, Japan Tobacco controlled 8.8% of cigarette sales volumes globally, and operated in more than 130 countries.¹⁰ The international business’s portfolio of brands is led by Winston (the second-largest international brand in the world and fastest growing over the 2000s), and Camel (sold in over 100 countries), and Mevius (formerly Mild Seven).¹⁵

10.2.2.4 Imperial Brands

Imperial Brands plc is the smallest of the four major multinational tobacco companies, as of 2020, controlling 3.7% of global cigarette sales volume and selling its key brands such as Davidoff, John Player Special (JPS), West, and Gauloises in 160 markets.¹⁰ Imperial Brands is a company based in the UK, and as of 2025, is comprised of two distinct operations. The first is ‘Tobacco & NCP’ (Next Generation Products), relating to the manufacture, marketing and sale of tobacco, Next Generation Products, and tobacco-related products. Second is the Distribution business, which “comprises the distribution of Tobacco & NGP products for associated manufacturers, including Imperial Brands, as well as a wide range of products and services”.¹⁶

The Imperial Tobacco company was first formed in 1901, and was incorporated Imperial Tobacco Group plc in 1986 and listed on the London stock exchange in 1996.¹⁷ Until 2016, Imperial Brands was known as Imperial Tobacco Group. The company removed ‘tobacco’ from its name as it expanded into harm-reduced products.¹⁷ The Bristol-based company substantially increased its global expansion since the mid-1990s, through brand acquisition (as has occurred in Australia) as well as increase in market share. Following its acquisition of Reemtsma Cigarettenfabriken GmbH in 2003, Imperial Tobacco Group became the second largest tobacco company in Germany and the fourth largest multinational tobacco company in the world, manufacturing and distributing cigarettes, loose tobaccos, cigars and smoking-related paraphernalia such as cigarette papers, filters and tubes. In 2024, Imperial Brands noted the top five combustible priority markets that accounted for approximately 70% of operating profits: United States, Germany, the UK, Spain, and Australia.¹⁶ Imperial Brands  is a global market leader in fine cut tobacco and has reported its volume cigarette sales in terms of cigarette equivalents to demonstrate the way in which roll-your-own tobacco can mitigate volume falls in cigarette sales.¹⁵

10.2.3 Increasing globalisation 

The trend towards globalisation of the tobacco industry has included a globalised approach to marketing, research and lobbying,¹⁸ and factors such as trade liberalisation have opened new and lucrative markets to the transnational companies. Companies are increasingly focused on their 'international' brands, as it is more cost effective to manage and market a smaller number of iconic brands than to develop smaller, market-specific brands.¹⁹ Some well-known international brands are shared by tobacco companies across different markets. For example, Camel is a BAT brand in the United States, but a Japan Tobacco Inc brand in other markets.⁴

The tobacco industry is highly globalised, and becoming increasingly concentrated.^2,20 The share of tobacco sales volumes controlled by the five leading global companies (including China National Tobacco Corporation) almost doubled between 2001 and 2020, from 43% to 82%.¹⁰ Between 2011 and 2020, the number of tobacco companies (enterprises) globally declined from 651 to 443.⁴ The driving force behind consolidation of the tobacco companies is the desire to increase market share, particularly in emerging markets, and maintain profitability in developed markets where consumption has fallen. These larger companies are also more resilient to increased regulatory pressures, such as packaging requirements, and increasing operating costs.⁴ This strategy has been increasingly important since 2009, when for the first time world cigarette sales volume fell (by 0.2%). However, as of 2018, the share of the global tobacco market made up by cigarettes increased, with declines in consumption in mature markets only being partially offset by increases in emerging markets.¹ Even with falling smoking prevalence, total growth in population—particularly in Asia and Africa—means there is opportunity and potential for growth.^10,21 Despite the declines in smoking prevalence in Western Europe, regions like Asia Pacific, Middle East, and Africa experienced growing cigarette consumption. Between 2006 and 2020, cigarette sales volumes increased by 7.5% in the Asia Pacific and 15.3% in the Middle East and Africa.¹⁰ Additionally, in markets where volumes are declining, tobacco companies have raised the price of their tobacco products to maintain and even enhance profitability.¹

Transnational tobacco companies have also established licensing agreements and joint ventures with local tobacco industries to gain entry and market share in previously restricted markets. One of the earliest and most significant of these agreements is Philip Morris International's partnership with China National Tobacco Corporation, formed in 2005.²² The agreement established a joint venture company equally owned by both tobacco groups. It licensed China National Tobacco Corporation to produce and distribute Marlboro in China, and in return, facilitated entry for China National Tobacco Corporation to the global tobacco market with a portfolio of 'Chinese heritage brands'²³ carefully modified to appeal to foreign palates,²² as well as providing China National Tobacco Corporation with other international business opportunities. Both companies benefit from shared sales, distribution and other business infrastructure.²³ Similar agreements with China National Tobacco Corporation were made by British American Tobacco in 2013, and Imperial Brands in 2017.²⁴

The negative effects of tobacco industry globalisation can be illustrated through the imbalance between the money that flows from (often poor) smokers to (often not poor) shareholders and the money that flows from wealthy to poor countries to reduce tobacco use. For example, in 2005, British American Tobacco reported that smokers in the poorest countries of sub-Saharan Africa provided about $340 million to its bottom line, an amount equal to about 140% of the total global development assistance for tobacco control.²⁵

Although the companies engage in strong competition, as an industry they are generally united in their desire to promote their products and undermine tobacco control measures.i At an international level, the tobacco industry engages against instrumentalities including the World Health Organization, the World Bank and the United Nations. It strongly fights to discourage countries from adopting the effective measures mandated in the WHO Framework Convention on Tobacco Control. The industry has marshalled and given voice to an international lobby for tobacco growers, especially powerful in countries where tobacco is a major agricultural commodity. Using arguments honed over decades of cooperation, the industry as a whole continues to advance misinformation about the nature of its products, obfuscates about addiction, and persists in its denials that advertising recruits new smokers.¹⁹ The tobacco industry argues that it is a vital, positive contributor to the economies of some countries. For discussion, see Section 17.3.4, and InDepth 10A Strategies for Influence.

10.2.4 Place of manufacture of tobacco products sold in Australia

A research project launched in 2010 by Stanford University's Global Tobacco Prevention Research Initiative, the Cigarette Citadels, maps the location of more than 400 cigarette factories worldwide. The goal of the project is to pinpoint all the factories in the world producing cigarettes and provide basic facts about them.²⁶ The interactive map can be accessed here: https://www.stanford.edu/group/tobaccoprv/cgi-bin/wordpress/
While tobacco manufacturing occurs almost worldwide, the manufacture of factory-made cigarettes sold in Australia has become increasingly concentrated in Asia. Figure 10.2.1 shows the region of manufacture of cigarettes packs purchased in Australia since 2010 (including only brands from the major tobacco companies operating in Australia). Prior to 2013, more than half of tobacco products examined were manufactured in Australia. With the end of tobacco manufacturing in Australia in 2015, the share of examined tobacco products manufactured in Asia grew from 73% in 2016 to 94% in 2025. The share manufactured in Europe fluctuated between 4% to 17%.

Figure 10.2.2 shows that within the Asian region, the place of manufacture has also changed over time. The proportion of packs examined that were manufactured in Indonesia grew from 6% in 2018 to 68% in 2025. In 2025, Taiwan was the next most common place on manufacture at 21%.

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