American Industry Overview: Cigarettes

Industry Snapshot

According to the U.S. Census Bureau, approximately 34 establishments operated in this category for part or all of 2005 for the cigarette manufacturing industry. Industry-wide employment totaled approximately 12,566 workers receiving a payroll of nearly $919 million. Companies in this industry tended to be larger in size with nearly 59 percent employing more than 500 workers. The Annual Survey of Manufactures reported that the tobacco product manufacturing industry (also including other tobacco product manufacturing) was valued at $41.9 billion in 2005, an increase from the 2004 total of nearly $38.0 billion. Additionally, a total of 14,956 employees worked in production in 2005 (of 18,833 employees), putting in nearly 29 million hours to earn wages of nearly $783 million.

Based on data from Hoover's and cited by the Department of Health and Human Services' Centers for Disease Control and Prevention (CDC), 90 percent of the total annual sales in the industry in 2006 were derived from the largest five cigarette companies in the United States. These included: Altria Group Inc. (parent of Philip Morris) with 49.2 percent; Reynolds American Inc. with 27.8 percent; Loews Corporation (parent to Carolina Group and its subsidiary Lorillard) with 9.7 percent; Houchens Industries (of Commonwealth Brands) with 3.7 percent; and Vector Group Ltd. (of Liggett) with 2.4 percent. Altria's Marlboro was the leading brand per a 2007 CDC report with 40.5 percent of the market followed by Newport (8.9 percent), Doral (6.6 percent), Camel (4.4 percent), Basic (3.8 percent), Winston (3.5 percent), and Kool (3.2 percent).