In this article, we discuss the 5 most valuable cigarette companies in the world. If you want to read our detailed analysis of the tobacco industry, go directly to the 15 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.
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