How to Invest in Tobacco
Tobacco is a green leafy plant that is commercially grown and harvested for its leaves and stems. Tobacco is either cured or dried before being rolled into cigars, or shredded for cigarettes and other tobacco products like chew and snuff. This commodity is arguably a staple crop given the widespread popularity and consumption of tobacco products all over the world.Top producers of the tobacco plant include China, followed by Brazil and the United States.
An investment in tobacco can be treated as a play on the global consumer discretionary sector, although many investors would label it as a staple good seeing as how demand for tobacco products is fairly inelastic. An investment in tobacco may be appealing given the steady consumption of this commodity across both developed and emerging markets alike.