The Decline of the Tobacco Industry in Virginia

Oct.10.2023
The Decline of the Tobacco Industry in Virginia
Virginia's tobacco industry faces irreversible decline as the number of tobacco farms decreases to 306, compared to 895 in 2007.

Recently, according to reports from Richmond, the village of Kentuck in the state of Virginia is enjoying a bountiful tobacco harvest, meticulously cultivated by tobacco farmers. These farmers are carefully separating the finest leaves, creating a bustling scene on the hillside. However, the tobacco industry in Virginia is currently facing an irreversible decline.


The number of tobacco farms in Virginia has dwindled significantly over the years, with only 306 remaining as of now. This figure pales in comparison to the 895 farms in 2007 and the staggering 6,067 farms in 1997. It is important to note that these numbers reflect the year prior to the implementation of the Tobacco Master Settlement Agreement. Under this agreement, tobacco companies agreed to pay billions of dollars annually to states in order to settle lawsuits aimed at recovering healthcare costs associated with tobacco-related illnesses.


Until 2003, tobacco was the main cash crop in Virginia, but it has since fallen behind crops such as tomatoes, soybeans, and corn. Tobacco is no longer one of the top ten cash-producing agricultural products in Virginia, but by 2022, tobacco products are expected to be among the top five agricultural and forestry exports in the state, with exports reaching $215 million.


On the other hand, Virginia's Altria Group, the parent company of Marlboro, has emerged as the most popular cigarette brand in the United States. However, the CEO of Altria has revealed that the company is actively seeking new product directions, such as the "on!" brand oral nicotine pouches derived from tobacco extract and heated tobacco pods. The number of smokers has significantly decreased – 50 years ago, over a quarter of American adults smoked, whereas today, it's closer to one in nine.


Tobacco farms in Virginia are rapidly shrinking due to a decline in cigarette consumption, leading to the decline of the tobacco industry. Farmers who have heavily relied on tobacco cultivation for income are now seeking transition. In order to stay abreast of the shifting trends in the tobacco market, they are placing greater emphasis on marketing new tobacco products to consumers.


Billy Gifford, CEO of Alchea, has stated, "We are not interested in attracting people to smoke." Gifford added, "As far as we know, approximately half of adult smokers are interested in another safer way to enjoy tobacco.


However, public health advocates expressed skepticism about this. Many doubt the sincerity of Achia and other tobacco companies' commitment to producing products that reduce the harm caused by tobacco use. Some believe that cigarette manufacturers indeed aim to increase the number of individuals addicted to nicotine in tobacco.


Ochiai is expected to apply for preliminary approval from the US Food and Drug Administration by 2025 to sell a Marlboro pod manufactured in Richmond, which is used in conjunction with a heating device developed by Japan Tobacco. The two tobacco giants have established a joint venture to sell a system comprised of small cigarettes suitable for handheld heating devices.


We welcome news tips, article submissions, interview requests, or comments on this piece.

Please contact us at info@2firsts.com, or reach out to Alan Zhao, CEO of 2Firsts, on LinkedIn


Notice

1.  This article is intended solely for professional research purposes related to industry, technology, and policy. Any references to brands or products are made purely for objective description and do not constitute any form of endorsement, recommendation, or promotion by 2Firsts.

2.  The use of nicotine-containing products — including, but not limited to, cigarettes, e-cigarettes, nicotine pouchand heated tobacco products — carries significant health risks. Users are responsible for complying with all applicable laws and regulations in their respective jurisdictions.

3.  This article is not intended to serve as the basis for any investment decisions or financial advice. 2Firsts assumes no direct or indirect liability for any inaccuracies or errors in the content.

4.  Access to this article is strictly prohibited for individuals below the legal age in their jurisdiction.

 

Copyright

 

This article is either an original work created by 2Firsts or a reproduction from third-party sources with proper attribution. All copyrights and usage rights belong to 2Firsts or the original content provider. Unauthorized reproduction, distribution, or any other form of unauthorized use by any individual or organization is strictly prohibited. Violators will be held legally accountable.

For copyright-related inquiries, please contact: info@2firsts.com

 

AI Assistance Disclaimer

 

This article may have been enhanced using AI tools to improve translation and editorial efficiency. However, due to technical limitations, inaccuracies may occur. Readers are encouraged to refer to the cited sources for the most accurate information.

We welcome any corrections or feedback. Please contact us at: info@2firsts.com

Company | Itsuwa Technology to Establish French Subsidiary to Boost Overseas Footprint; 2024 Net Profit Down 194.47% YoY
Company | Itsuwa Technology to Establish French Subsidiary to Boost Overseas Footprint; 2024 Net Profit Down 194.47% YoY
Itsuwa Technology announced that it plans to establish a wholly owned subsidiary in Paris, France—ITSUWA FRANCE—with a registered capital of €10,000, to engage in promotion, marketing activities, and brand management. In 2024, the company’s revenue fell 12.59% to RMB 283 million, and it recorded a net loss of RMB 19.66 million. The investment aims to strengthen overseas presence and enhance brand and market responsiveness.
Sep.12 by 2FIRSTS.ai
PMI Japan to Launch Limited Edition IQOS ILUMA i "Galaxy Blue", Introduces New TEREA Clear Regular Flavo
PMI Japan to Launch Limited Edition IQOS ILUMA i "Galaxy Blue", Introduces New TEREA Clear Regular Flavo
PMI Japan unveils limited edition IQOS ILUMA i in Galaxy Blue, inspired by the universe, set to launch on October 29.
Oct.14 by 2FIRSTS.ai
83 Public Health Experts Urge European Commission: Excessive E-Cigarette Taxes Could Undermine Health Policy
83 Public Health Experts Urge European Commission: Excessive E-Cigarette Taxes Could Undermine Health Policy
Eighty-three international experts in public health and tobacco control have co-signed a letter to the European Commission warning that the forthcoming revision of the Tobacco Excise Directive could seriously harm public health if it imposes high taxes on lower-risk alternatives such as e-cigarettes, heated tobacco, and nicotine pouches. The experts argue that the EU’s stance that “non-combustible nicotine products carry risks comparable to cigarettes” contradicts scientific evidence.
Sep.02 by 2FIRSTS.ai
Russia plans to introduce a bill to crack down on e-cigarette sales, with individual fines of up to $20,000
Russia plans to introduce a bill to crack down on e-cigarette sales, with individual fines of up to $20,000
Russia is preparing a bill to crack down on the sale of e-cigarettes. The bill would impose fines of up to 200,000 rubles (approximately $2,406) for the retail and wholesale sale of e-cigarettes, with fines of up to 2 million rubles (approximately $20,000) for businesses. The bill aims to fill gaps in the definition of e-cigarettes in existing laws and curb their popularity among youth to protect public health.
Sep.17 by 2FIRSTS.ai
BAT Korea: Neo Heated Tobacco Stick Series Updated with StickSeal Technology and New Packaging
BAT Korea: Neo Heated Tobacco Stick Series Updated with StickSeal Technology and New Packaging
BAT Korea has fully upgraded its glo hyper-exclusive Neo stick series, applying StickSeal technology across all 10 product variants. The renewal also features the updated “Tobacco Switch” with a cooling capsule and a redesigned packaging concept under “Live Life in Color,” enhancing both user experience and brand identity.
Sep.02 by 2FIRSTS.ai
2Firsts Interview with China Tobacco International (HK): Governance and Strategic Outlook Behind ESG Rating Upgrade
2Firsts Interview with China Tobacco International (HK): Governance and Strategic Outlook Behind ESG Rating Upgrade
ESG has become a key focus for international tobacco companies. Ahead of InterTabac 2025 in Dortmund, China Tobacco International (HK) sat down with 2Firsts to outline the core initiatives behind its ESG rating upgrade, covering environmental governance, social responsibility, and corporate governance, while addressing future challenges and tightening global ESG regulations.
Sep.16