Global importance

Tobacco moves about R $ 2.5 trillion a year in more than 200 countries

BAT Brasil is proud to be part of a market with estimated total value is approximately R$ 2.5 trillion. The global tobacco industry impacts economically over 200 countries and is highly relevant to millions of people, directly or indirectly involved in a complex production chain.
Tobacco industry is extremely important in the countries it is in. The process of industrialization and planting of tobacco, for example, generates millions of workplaces and stimulate exports. Countries that are not part of the chain see the distribution of products as an important source of income and employment generation.

In all these countries, the tobacco market also has great relevance for tax purposes. In most of them, the taxes levied on tobacco products is a major - if not the main - tax revenue source of their governments.

Optimistic view

BAT Brasil faces with optimism the challenges they shall face in the future. The company's projections point to a reduction in the number of consumers who, on average, also shall smoke less. Still, the business shall proceed sustainable, thanks  mainly to emerging markets where population growth shall ensure the increase of revenues.

Changes in tobacco consumer profile have also lead to the development of so-called Next Generation Products, such as electronic cigarettes. According to a survey by Euromonitor International, this youth market grew 56% in 2014 to 2015 with the jump of sales of sales from US $ 3.9 billion to $ 6.1 billion annually.

The growth of the tobacco market also implies the sustainability of the entire production chain. BAT Brasil is a reference in this regard both in the BAT group as worldwide. BAT Brasil, as one of the biggest tobacco companies in Brazil, is a reference in Research & Development to BAT group. In Rio Negro, one of the most advanced centers of genetic improvement of the world is located. In 2016, Leaf Department was chosen as Global Leaf Operations Center by BAT, and became a reference in operational quality standards and leading tobacco production sustainability.

In the field, the smallholder model is affordable and highly profitable. BAT Brasil is a partner of the tobacco growers investing in the improvement of farming techniques and creating programs that further enhance the sustainability of agricultural production.

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