424940

Analysis

NAICS 424940 is the 2022 national industry for tobacco product and electronic cigarette merchant wholesalers, part of 42494 (Tobacco Product and Electronic Cigarette Merchant Wholesalers). Census lists 8 example activities under it in the official index.

Between 2018 and 2023 the number of establishments grew 17% and employment rose 9%. The 2018 count used NAICS 2017, so part of a large move can come from codes being redefined rather than from businesses opening or closing.

County Business Patterns counts 1,784 US establishments in this code in 2023, employing 60,669 people at an average annual payroll of $65,791 per employee (45th percentile of national industries). 51% of the establishments have fewer than five employees, which is close to the national mix.

Its index entries, the activities Census uses to assign businesses to this code, include chewing tobacco merchant wholesalers, cigarettes merchant wholesalers, cigars merchant wholesalers and electronic cigarettes merchant wholesalers, among 8 in all.

For example, merchant wholesale distribution of leaf tobacco and hemp are classified in 424590 (Other Farm Product Raw Material Merchant Wholesalers) instead.

Census lists 2 related activities that belong elsewhere, most often in 424590 and 424690. Businesses that do several things are classified by their primary activity, the one that generates the most value, so check those boundaries before settling on this code.