Tobacco is a product that has had a long history of influencing numerous aspects of life, ranging from politics, economics, religious beliefs, and society in general. While health professionals and institutions warn of the dangerous consequences of tobacco smoke and engage in active anti-smoking programs, state high levies, excise duties, and strive to minimize the prevalence of the tobacco products, the market continues to develop. The thesis will explain the key terms that are crucial for the topic in question. In order to understand the current situation on the tobacco market, it’s essential to trace the history and the development of the industry itself. The research will cover the beginning of the use of tobacco and identify the key points for the industry. After providing a general historical overview, the research paper will analyse two different markets: the global tobacco market and the European Union’s tobacco market. To be able to identify the market structures of these two markets, the paper will examine the leading suppliers in the industry. The contribution of the paper is informing about the concentration levels of the global and the European Union market. Practical examination of the thesis is carried out through analysing different dependent and independent variables. The calculation of the concentration ratio and the Herfindahl–Hirschman Index will be carried out. Finally, the research study will determine the market structure of both markets and determine how competitive these industries are.