Alcohol and Tobacco Market PDF

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Alcohol and Tobacco MarketIntroductionAlcohol and Tobacco contribute significantly to the economy of a country. Not only do theygenerate employment for thousands of people, but this part of the market has a sizablecontribution towards the state and local governments in terms of tax revenues. However, bothalcohol and tobacco have negative impacts on the general health of its users. This essay shalldiscuss the market trends for alcohol and tobacco and its impact on the economy.Alcohol and tobacco market economy and trendsAs per the statistics derived from “Numbers Crunch”[ CITATION htt06 \l 1033 ],38.5% of all themoney spent on beverages was spent on alcoholic beverages. Out of this, beer contributed to thebiggest portion of 20.6% followed by wine at 12% and the remaining at 5.9% by distilled spiritssuch as cocktails etc. This is a considerable portion of all the beverages consumed by people.After the invention of the cigarette making machine by James A. Bonsack in the year 1881, thetobacco industry saw a rise in the consumption as it was now much easier as well as cheaper tomanufacture cigarettes. However, tobacco farming was still comparatively much more time-consuming and labor intensive. “Brazilian researchers estimate that it takes up to three thousandperson-hours per year to grow one hectare of tobacco[ CITATION Alc17 \l 1033 ]. This means thattobacco farming is almost ten times as labor intensive as vegetable farming.The alcohol and tobacco market influence each other heavily. Studies show that people whosmoke and drink simultaneously are more likely to continue consumption of both the items andless likely to quit. It has also been found that consuming alcohol leads to increased desire forsmoking and consumption of nicotine in turn enhances the consumption of alcohol. There is avery strong connect between the consumption of alcohol and tobacco. Such consumption trendsare also very heavily influenced by surrogate advertising, which involves the marketing andadvertisement of illegal or harmful products by disguising them as another product. Examplesinclude music CDs, club soda and playing cards sold under the brand names such as Bacardi,Bagpiper and Officer’s Choice. There have also been studies suggesting that consumption ofwine before smoking prevents excessive damage. “Drinking the wine prevented the release of
micro-particles from artery walls, platelets and white blood cells that is known to indicatesmoking damage[ CITATION Joh16 \l 1033 ].Impact of health warning on cigarette packaging on beer consumptionHealth warnings play an important role in influencing consumption trends of smokers andalcoholics in general. It has been observed that more people have quit smoking and drinkingaltogether when made aware of the health impacts and life threatening conditions they can sufferfrom with continued use of tobacco and alcohol. “In other words, the more smokers think aboutthe dangers of cigarette smoking, the more likely they are to think about quitting[ CITATION Ang16\l 1033 ].As has been mentioned earlier, alcohol and tobacco consumption influence each other’sdemand and supply. A study by the scientists at Baylor college of Medicine found that smoking“dampens the ability of the brain to respond to the drug, meaning that more and more alcohol isneeded to cause the same level of pleasure[ CITATION Emm13 \l 1033 ].So people who drink andsmoke together are more likely to quit both smoking and drinking after being made aware of theserious health implications caused by tobacco and alcohol consumption.Following is a graphical representation on the impact of health warning on cigarette packagingon beer consumption-
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