The Transformation of the Tobacco Industry Through Technological Development and Changing Consumer Habits

Abstract

The aim of this study is to examine the phenomenon of non-consumption and its impact on the tobacco industry. Utilizing industry data, we illustrate the challenges arising from changing market conditions. Non-consumption significantly affects manufacturing companies; a decline in tobacco use reduces their revenue and underutilizes production capacity. In the 21st century, growing environmental and health consciousness among consumers is leading to decreased demand for tobacco products, impacting the industry and its associated companies. This downturn is reshaping the tobacco industry, with production shifting to regions experiencing a rise in tobacco use. Tobacco processing companies face the challenge of adapting to these market changes. Companies focused on mass production, due to their specific production models, struggle more to adapt compared to those already equipped for flexible production.