Tobacco cultivation in JapanTobacco was cultivated in over 30 prefectures in Japan, with Kumamoto and Okinawa standing at the forefront. However, the number of tobacco leaf farmers declined steadily in recent years, reaching record-lows with just over four thousand people. Coupled with a declining production output, the sales of tobacco leaves reached a new low at around 27 billion yen.
The single destination of the domestic harvestJapan Tobacco, Inc. is the only Japanese manufacturer authorized to produce and distribute tobacco products in the country. In accordance to its state monopoly position, the company is obliged to enter a contract with domestic tobacco leaf farmers and purchase their entire harvest.
However, following the expansion of the business into the global market, Japan Tobacco scaled up its supply chain for raw materials and distribution channels, achieving its position as a leading tobacco company worldwide.