• March 29, 2024

Tobacco remains viable business

Despite the declining smoking rate in the U.S. and pressure from regulatory authorities, tobacco companies still have “tools” to ensure steady revenue and continue rewarding shareholders, according to stock analysis provider Trefis.

Writing in Forbes, Trefis points out that smoking rates are still growing in many developing countries and that major companies are turning to innovations like e-cigarettes and reduced-risk products to mitigate losses from delining cigarette sales.

What’s more, says the firm, tobacco companies will continue to have pricing power over their demand-inelastic product while consumers’ purchasing power increases.