cigarette

China is both the largest grower and the biggest consumer of cigarette in the world. In 2004, China's tobacco industry experienced recovery growth, with increase in both output and sales revenue. The industry's comprehensive economic indicators improved. Consolidation produced initial effect, and the industry has boosted its international competitiveness. The content of tar in cigarette products decreased significantly. Market competition shifted from purely local protectionism to comprehensive competition involving various factors. Brand competition is getting increasingly fierce. In the next few years, production and sales of tobacco will continue to grow steadily, but the margin of growth will not be wide. Driven by market demand, the price of cigarettes will keep rising. With the grade of cigarette products improves, the space for the fourth-class and fifth-class cigarettes will shrink. The tobacco industry will continue to consolidate. Yunnan, Shanghai and Hunan cigarette groups are emerging.