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

Relx Technology Q2 2025 Financial Report: Net Revenue Grew by 40.3% Year-over-year to 880 Million Yuan, Net Profit Increased by 35.6%
Relx Technology Q2 2025 Financial Report: Net Revenue Grew by 40.3% Year-over-year to 880 Million Yuan, Net Profit Increased by 35.6%
In the second quarter of 2025, Relx Technology achieved a net revenue of 880 million yuan, representing a year-over-year increase of 40.3% and a quarter-over-quarter increase of 8.9%. The net profit reached 290 million yuan, up by 35.6% year-over-year. The gross profit was 240 million yuan, with a gross margin of 27.5%.
Aug.22 by 2FIRSTS.ai
Research Brief | Nicotine pouch use among Canadian adolescents has drawn close to cigarettes
Research Brief | Nicotine pouch use among Canadian adolescents has drawn close to cigarettes
Study results show that nicotine pouches are the third most commonly used nicotine product among adolescents. Current use stands at 2.6%, close to cigarettes (3.0%). Risk of use is higher among cisgender boys, gender-diverse youth, students with poor academic performance, and those with part-time jobs; more than 70% of nicotine-pouch users also vape.
Sep.04 by 2FIRSTS.ai
Two South African students had their scholarships revoked for vaping; court rules the school's punishment invalid
Two South African students had their scholarships revoked for vaping; court rules the school's punishment invalid
Two South African students win court ruling against school's excessive e-cigarette punishment, violating "no double jeopardy" principle.
Sep.15 by 2FIRSTS.ai
The Chairman of the Youth Policy Committee of the Russian State Duma has proposed a ban on the import and sale of certain flavored e-cigarettes and e-liquids
The Chairman of the Youth Policy Committee of the Russian State Duma has proposed a ban on the import and sale of certain flavored e-cigarettes and e-liquids
Russia plans to ban e-cigarette imports and sales in violation of restrictions, with strict penalties for offenders.
Aug.26 by 2FIRSTS.ai
2Firsts Interviews ASDF on Malaysia’s Vape Ad Ban, Total Prohibition Plans, and What’s Next
2Firsts Interviews ASDF on Malaysia’s Vape Ad Ban, Total Prohibition Plans, and What’s Next
Malaysia’s Vape Market in Turmoil.Since the implementation of Act 852, Malaysia’s e-cigarette sector has been undergoing intense upheaval. From stricter compliance inspections and a full advertising ban to a proposal for a complete sales prohibition, a regulatory storm is reshaping the industry landscape.2Firsts talks with leading local brand ASDF to learn how it is responding to challenges and laying out a compliance roadmap in the current policy environment.
Aug.14
Smoore International Falls Over 6% Again; H1 Net Profit Down Nearly 28%, Short-Term Profitability Pressured by Higher R&D Spending
Smoore International Falls Over 6% Again; H1 Net Profit Down Nearly 28%, Short-Term Profitability Pressured by Higher R&D Spending
Smoore International (06969) continued to decline after its earnings release, falling more than 6% in early trading today. As of press time, the stock was down 5.08% at HK$19.23, with a turnover of HK$466 million.
Aug.28 by 2FIRSTS.ai