NAICS 2111 - Oil and Gas Extraction
This industry comprises establishments primarily engaged in operating and/or developing oil and gas field properties and establishments primarily engaged in recovering liquid hydrocarbons from oil and gas field gases. Such activities may include exploration for crude petroleum and natural gas; drilling, completing, and equipping wells; operation of separators, emulsion breakers, desilting equipment, and field gathering lines for crude petroleum and natural gas; and all other activities in the preparation of oil and gas up to the point of shipment from the producing property. This industry includes the production of crude petroleum, the mining and extraction of oil from oil shale and oil sands, the production of natural gas, sulfur recovery from natural gas, and the recovery of hydrocarbon liquids from oil and gas field gases. Establishments in this industry operate oil and gas wells on their own account or for others on a contract or fee basis.
Industry trends:
The cigarette manufacturing industry under NAICS 2111 is undergoing significant transformations driven by shifting consumer preferences and stringent regulatory environments. One of the most notable trends is the rising consumer awareness of health issues associated with smoking, leading to a decline in traditional cigarette consumption. Instead, there is an increasing demand for alternative nicotine delivery systems such as e-cigarettes and vaping products. These alternatives are perceived as less harmful, although they are also facing regulatory scrutiny.
Regulatory pressures continue to mount globally, with many countries implementing plain packaging laws, higher taxation, and stricter advertising bans to deter smoking. This regulatory landscape is expected to tighten further, impacting profit margins and leading to a consolidation trend where smaller players may be acquired or forced out of the market.
In response to these challenges, major companies in the industry are diversifying their portfolios by investing in Reduced Risk Products (RRPs) and tobacco heating systems. There's also a notable investment in research and development to create products that adhere to evolving regulatory standards while meeting consumer demand for less harmful options.
Looking ahead, the cigarette manufacturing industry is expected to continue its decline in traditional cigarette sales while experiencing growth in the e-cigarette and vaping segments. Companies that can innovate and navigate the complex regulatory landscape will be better positioned for sustained growth. Additionally, the implementation of advanced technologies such as AI and machine learning for predictive analytics and quality control could offer competitive advantages to forward-thinking manufacturers.
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