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

EU Vape, Heated Tobacco and Nicotine Pouch Tax Reform Reaches Ministerial Talks: Sweden Opposes Proposed 2032 Minimum of 50% of Retail Price or €50/kg for Nicotine Pouches
EU Vape, Heated Tobacco and Nicotine Pouch Tax Reform Reaches Ministerial Talks: Sweden Opposes Proposed 2032 Minimum of 50% of Retail Price or €50/kg for Nicotine Pouches
EU finance ministers are scheduled to discuss tobacco excise reform on November 9, 2026, seeking agreement on higher minimum duties for conventional tobacco and a common EU minimum tax framework covering e-cigarettes, heated tobacco and nicotine pouches. A November 5 Council document identifies nicotine pouch taxation as the main outstanding issue. The Irish Council presidency proposes phased increases, reaching 50% of retail selling price or €50 per kilogram in 2032. Sweden has formally said it cannot support the current compromise, objecting to both the proposed nicotine pouch tax burden and the adjustment of minimum rates based on national purchasing power. The package also addresses cross-border personal-use reference quantities, raw tobacco controls and the continued exclusion of traditional tobacco snus.
Regulations
Nov.10
Malaysia's Poisons Board Backs New Vape Nicotine Exemption After Unanimously Opposing 2023 Proposal
Malaysia's Poisons Board Backs New Vape Nicotine Exemption After Unanimously Opposing 2023 Proposal
Malaysia's Poisons Board has endorsed Health Minister Dzulkefly Ahmad's proposal to exempt liquid nicotine used in vaping products from the Poisons List, according to a November 2, 2026, report by CodeBlue. The Board unanimously opposed a similar proposal in 2023, but the government proceeded with the exemption. The Kuala Lumpur High Court invalidated the 2023 decision in May 2026, and the government withdrew its appeal in August. No new ministerial order has been published. The development raises questions about the interaction between Malaysia's two regulatory frameworks and the treatment of RM354.51 million in excise duties collected on e-cigarette and vape products between May 2023 and June 11, 2026.
Regulations
Nov.03
Iowa Sets November 16 Vape Directory Launch: Unlisted Products Face Sales Ban, Manufacturers $1,000 Daily Fines per Product
Iowa Sets November 16 Vape Directory Launch: Unlisted Products Face Sales Ban, Manufacturers $1,000 Daily Fines per Product
Iowa plans to publish its first vapor products directory on November 16, 2026, after which products not listed will be prohibited from sale or offer for sale in the state. The Department of Revenue expects to begin penalty enforcement on December 17, following an initial 21-business-day period focused on compliance education. Under House File 2677, retailers, distributors and wholesalers selling unlisted products face civil penalties of $300 per product per day, while manufacturers face $1,000 per product per day. Eligibility extends to FDA-authorized products and certain products meeting historical marketing and pending PMTA requirements. The directory program resumed after a federal appeals court vacated a preliminary injunction in July 2026.
Regulations
Nov.05
U.S. Rep. Krishnamoorthi Questions FDA Over Planned PMTA Rewrite, Seeks Communications With Altria and Reynolds
U.S. Rep. Krishnamoorthi Questions FDA Over Planned PMTA Rewrite, Seeks Communications With Altria and Reynolds
U.S. Rep. Raja Krishnamoorthi on Oct. 6 questioned the FDA over its plan to reassess and potentially replace the 2021 PMTA regulatory framework, asking the agency to identify provisions it may change or eliminate, state whether current scientific evidentiary standards will be maintained, and disclose communications with Altria, Reynolds and other parties challenging the rule. Krishnamoorthi led a congressional investigation into JUUL and youth vaping in 2019 and has since remained active on e-cigarette regulation and enforcement.
Regulations
Oct.08
South Korea Extends Vape Rules to Unmanned Stores After Bringing Synthetic Nicotine Under Tobacco Law
South Korea Extends Vape Rules to Unmanned Stores After Bringing Synthetic Nicotine Under Tobacco Law
South Korea's Ministry of Gender Equality and Family said on September 14 that it plans to designate unmanned e-cigarette stores as businesses where minors are prohibited from entering or working. Operators would be required to verify customers' ages and display notices restricting access by minors. The proposal is open for public comment through October 6. The move follows an April expansion of South Korea's statutory tobacco definition that brought products made with natural or synthetic nicotine under the Tobacco Business Act. Nicotine-free liquids and products using nicotine analogues such as 6-methylnicotine, however, remain an emerging regulatory issue.
Sep.21
Reynolds Showcases Vuse Pro Flavors and VELO Nicotine Pouches at NACS Show 2026
Reynolds Showcases Vuse Pro Flavors and VELO Nicotine Pouches at NACS Show 2026
Reynolds American, a BAT subsidiary, showcased four Vuse Pro flavored e-cigarette pods and its VELO nicotine pouch portfolio at NACS Show 2026. Booth staff confirmed to 2Firsts that the Vuse Pro flavors are sold in the U.S., although they have not received FDA marketing authorization. BAT outlined plans to expand Vuse retail distribution and reported that VELO held a 30.5% year-to-date volume share of the U.S. modern oral nicotine category through August 2026. The booth also featured the newly launched VELO MAX range and merchandising displays combining cigarettes, vaping products and oral nicotine brands.
EXPO
Oct.09