15 Most Valuable Cigarette Companies in the World

Published on December 12, 2021 at 4:43 am by Musa Ali in Lists, News

In this article, we will take a look at the 15 most valuable cigarette companies in the world.

The Tobacco Industry: An Analysis

The tobacco industry today faces a lot of pressure from the media due to their glamorization of smoking through cigarette ads — the image of the Marlboro man, for instance, is a staple in American culture. However, the industry has managed to prosper over the years. The largest tobacco companies have continued to grow in value, and even today, the advertising and promotions budget of the most valuable cigarette companies exceeds $8 billion in the US alone.

With growing anxiety towards the dangers of cigarette smoking, many of the largest cigarette companies in the world have started to move away from a sole focus towards tobacco products, and have instead also diversified into alternatives such as oral nicotine products, e-cigarettes, and heated cigarettes. This move has also helped many of these companies financially, as sales of e-cigarettes and other similar products have increased by a whopping 177.7% in the US from 2014 to 2020.

Our Methodology

The following list outlines the fifteen most valuable cigarette companies in the world today, ranked in accordance with market capitalization. All non-US currency values have been converted to USD using the conversion rate for 26th August 2021. For clarity, the Swedish Krona has been written as Kr* while the Danish Krone has been written as Kr.

With this context and industry outlook in mind, let’s now take a look at the 15 most valuable cigarette companies in the world.

15 Most Valuable Cigarette Companies in the World

15. Universal Corporation (NYSE:UVV)

Universal Corp (NYSE: UVV) started out in 1896 as J.P. Taylor & Company and their most significant segment is the Universal Tobacco Leaf Company Inc, which deals with the production of various varieties of tobacco leaf products. Headquartered in Virginia, USA, Universal Corp (NYSE: UVV) currently deals in over thirty countries and employs a team of over 30,000. With a market cap of $1.23 billion, the company stands at number fifteen on the list of the most valuable cigarette companies in the world.

14. Philip Morris CR a.s. (PX:TABAK.PR)

Philip Morris CR a.s. (PSE: TABAK) is the largest tobacco company in the Czech Republic, with exports to forty-two countries, over one thousand employees, and a factory in Kutna Hora which was established in 1812. The company itself became Philip Morris CR a.s. (PSE: TABAK) in 1992 after Philip Morris International Inc. (NYSE: PM) gained the majority of shares in the state enterprise. They produce cigarettes for several brands, such as Marlboro, Red & White, and L&M.

13. China Tobacco International (HK) Company Limited (HKSE:6055.HK)

China Tobacco International HK Co Ltd (HKG: 6055) is headquartered in Hong Kong and was founded in 1989. It mainly deals with the import and export of tobacco leaf products, the export of tobacco cigarettes, and the export of new tobacco products outside China, such as heated cigarettes. China Tobacco International HK Co Ltd (HKG: 6055) exports products from mainland China to countries like Hong Kong, Macau, Thailand, Singapore, and several other locations in Southeast Asia.

12. Scandinavian Tobacco Group A/S (OMXC:STG.CO)

The Scandinavian Tobacco Group A/S (CPH: STG) is headquartered in Copenhagen, Denmark, and specializes in cigars (both hand rolled and machine rolled), fine-cut tobacco, and pipe tobacco through their thirty-four brands. Their products are extremely popular in the US, Europe, and Denmark; according to their website, their cigars and tobacco are #1 in popularity in the US and Denmark.

11. Vector Group Ltd. (NYSE:VGR)

Vector Group Ltd. (NYSE: VGR) is a holding company based in Florida, USA, that produces cigarettes through its Vector Tobacco Inc. and Liggett Group LLC subsidiaries, alongside real-estate through its New Valley LLC subsidiary. Liggett Group is the fourth largest cigarette manufacturer in the United States, and overlooks several discount brands such as Pyramid and Eagles 20.

The company has been doing especially well in 2021, with a revenue of $1.27 billion in Q2 2021, as compared to $900.2 million for the same period in 2020.

10. PT Gudang Garam Tbk (JKSE:GGRM.JK)

Gudang Garam Tbk PT (IDX: GGRM) is the second-largest tobacco company in Indonesia, a country where cigarettes are famously prevalent — almost two-thirds of Indonesian men are smokers. The company holds about 20% of the market and has several traditional and kretek (clove) cigarette brands. Gudang Garam Tbk PT (IDX: GGRM) and its subsidiaries, including its sole distributor, PT. Surya Madistrindo, has over 30,000 employees. The company has a market share of $4.30 billion, or 61.52 trillion Rp, and as such, is number ten on the list of the fifteen most valuable cigarette companies.

9. PT Hanjaya Mandala Sampoerna Tbk (JKSE:HMSP.JK)

Hanjaya Mandala Sampoerna Tbk PT (IDX: HMSP), often shortened to Sampoerna, is the leading tobacco company of Indonesia, having held over 30% of the Indonesian cigarette market for over a decade. Sampoerna Tbk PT (IDX: HMSP) is affiliated with Philip Morris International Inc. (NYSE: PM) and specializes in Machine-Made Low Tar Kretek (clove) cigarettes, most notably through the Sampoerna A brand that was established in 1989.

8. KT&G Corporation (KSE:033780.KS)

KT&G Corp (short for Korea Tobacco and Ginseng Corporation), which is currently the largest South Korean tobacco company, started out as a government monopoly with a focus on domestic production and consumption; however, after its privatization process began in the 1990s, KT&G Corp (KRX: 033780) has become globally oriented and is in competition with other international tobacco companies.

The company has multiple notable subsidiaries in the tobacco, ginseng, pharmaceutical, and cosmetics industry — along with a hotel management and development company by the name of Sangsang Stay. This diversified portfolio has helped KT&G Corp (KRX: 033780) retain its status as one of the most notable corporations in South Korea.

7. Swedish Match AB (publ) (STO:SWMA.ST)

Swedish Match AB (STO: SWMA) produces snus, pouches, cigars, smoke-free alternatives, lighters, matches, and other similar products. These products are produced across seven countries, with their most notable markets being the US and Scandinavia. Swedish Match AB’s most notable brands include General, Zyn, Longhorn, and Redman.

Since this list also includes tobacco companies that have segmented into alternatives-to-smoking, Swedish Match AB (STO: SWMA) comes at number seven on the list of the fifteen most valuable cigarette companies in the world. Considering that cigarettes constitute an 85% segment of the global tobacco market, it is impressive that Swedish Match AB (STO: SWMA) stands strong against its competitors despite no cigarettes in its portfolio.

6. Imperial Brands PLC (LSE:IMB.L)

Imperial Brands PLC (LSE: IMB) is a British multinational company headquartered in Bristol, England. It was established in 1901 after thirteen family businesses in tobacco met and joined forces against resistance from competitors. Imperial Brands PLC produces cigarettes like Davidoff and premium cigars like Montecristo, and also has a vaping subsidiary by the name of Fontem Ventures and a logistics subsidiary by the name of Logista that serves three hundred thousand outlets across several European countries.

With operations in over one hundred and twenty markets, 27,500 employees, and a market cap of £14.48 billion, Imperial Brands PLC (LSE: IMB) stands at number six on the list of the fifteen most valuable cigarette companies in the world.

5. ITC Limited (NSE: ITC.NS)

ITC Ltd (NSE: ITC) was established in 1910 as a subsidiary of Imperial Brands PLC (LSE: IMB), and was called the Imperial Tobacco Company of India. ITC Ltd has since moved on to become one of the most prominent conglomerates of the region, with a diversified portfolio that includes thirty mother brands focused on everything from fast-moving consumer goods (FMCGs) like cigarettes and stationary to more ambitious projects like hotel chains and agricultural ventures — in fact, they were recently in the news for their upcoming farmer-focused superapp, the ITC-MAARS, or Metamarket for Advanced Agriculture and Rural Services.

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4. Japan Tobacco Inc. (TSE: 2914.T)

The tobacco subsidiary of Japan Tobacco Inc. (TYO: 2914) sources their products from over thirty countries and distributes to one-hundred-and-thirty, with prominent brands including Winston, Camel, and Benson & Hedges. Their focus on environmental conservation has earned them a respectable reputation, especially with their commitment to reducing greenhouse gas emissions by 35% from their operations and 40% from their supply chain by 2030.

3. British American Tobacco p.l.c. (LSE: BATS.L)

Formed in 1902 as a joint venture between the UK’s Imperial Tobacco Company and the American Tobacco Company, British American Tobacco p.l.c. (LSE: BATS) has since grown into one of the most well-known cigarette companies in the world. With sales of $35,290 million, or £25,760 million, in 2020 and a market cap of $84.83 billion, or £61.81 billion (LSE: BATS), they stand at number three on the list of fifteen of the most valuable cigarette companies in the world.

After their acquisition of Reynolds American Inc. in 2017, they have expanded their low-risk portfolio by including several top brands; British American Tobacco p.l.c. (LSE: BATS) products include Dunhill and Lucky Strike cigarettes, along with vapor products such as Vuse and Vype. This move towards alternatives to smoking is highlighted in their A Better Tomorrow ideology, which emphasizes highlighting the harmful effects of cigarette smoking and a move towards less risky alternatives.

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2. Altria Group, Inc. (NYSE: MO)

Like many of the other entries on this list, Altria Group, Inc. (NYSE: MO), too, is focused on Moving Beyond Smoking with their vision being to “responsibly lead the transition of adult smokers to a non-combustible future” by 2030 — as such, their most well-known brand, aside from Marlboro cigarettes, is Juul, a market leader in electronic nicotine products. This diversification into non-smoking nicotine alternatives has allowed Altria Group, Inc. (NYSE: MO) to stay at the top of the tobacco and cigarette industry. In fact, they were recently named a Top 25 Dividend Giant by the ETF channel, owing to their 7.10% yield last quarter.

Altria’s success has not only consistently put them on the Fortune 500 — the company is at rank 138 this year — but their market cap of $89.71 billion (NYSE: MO) also puts them in second place on the list of the fifteen most valuable cigarette companies in the world.

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1. Philip Morris International Inc. (NYSE: PM)

Philip Morris International Inc. (NYSE: PM) is a leading tobacco company that was founded in 1837 and is headquartered in New York. With over 150 million consumers worldwide, ownership of six of the top fifteen cigarette brands, and a market cap of a whopping $157.79 billion (NYSE: PM), Philip Morris International Inc. is number one on the list of the fifteen most valuable cigarette companies in the world.

Interestingly, the company has increased its focus on smoke-free alternatives, such as their advanced IQOS system, which works by heating tobacco instead of burning it to provide a less risky alternative. In fact, the company has called for a complete ban on tobacco products by 2030. Not only is Philip Morris International Inc. a frontrunner in the tobacco industry, but they also seem to have taken the lead in establishing a smoke-free future.