NAICS 424940: Tobacco Product and Electronic Cigarette Merchant Wholesalers
This industry comprises establishments primarily engaged in the merchant wholesale distribution of tobacco products, such as cigarettes, snuff, cigars, pipe tobacco, and electronic cigarettes (including related parts and accessories). Cross-References. Establishments primarily engaged in--Show more
NAICS 424940 – Tobacco Product and Electronic Cigarette Merchant Wholesalers covers the wholesale distribution of tobacco products, including cigarettes, cigars, smokeless tobacco, and electronic nicotine delivery systems such as e-cigarettes and vaping devices. These wholesalers act as intermediaries between manufacturers and retail outlets, handling inventory management, logistics, regulatory compliance, and bulk distribution.
Industry Spending Overview
Federal obligations, top contractors and agencies, and related industry codes for NAICS 424940.
AI Industry Description
NAICS 424940 – Tobacco Product and Electronic Cigarette Merchant Wholesalers covers the wholesale distribution of tobacco products, including cigarettes, cigars, smokeless tobacco, and electronic nicotine delivery systems such as e-cigarettes and vaping devices. These wholesalers act as intermediari...
NAICS 424940 – Tobacco Product and Electronic Cigarette Merchant Wholesalers covers the wholesale distribution of tobacco products, including cigarettes, cigars, smokeless tobacco, and electronic nicotine delivery systems such as e-cigarettes and vaping devices. These wholesalers act as intermediaries between manufacturers and retail outlets, handling inventory management, logistics, regulatory compliance, and bulk distribution. In the government contracting context, this NAICS may support procurement for federal facilities, military bases, correctional institutions, and healthcare systems where tobacco product distribution is required for inmate welfare programs, veteran services, or controlled access under strict regulatory frameworks. While not a traditional defense or IT category, this sector intersects with federal operations involving health policy, institutional supply chains, and compliance with the Family Smoking Prevention and Tobacco Control Act. No contractor data is available for this NAICS code, indicating limited or no active federal contracting activity by identifiable prime contractors. The competitive landscape appears sparse, with no discernible pattern of large primes or small businesses dominating procurement. Similarly, no agency data is available, suggesting that federal procurement in this space is either highly decentralized, infrequent, or conducted under broader commodity codes rather than this specific wholesale classification. The market context reflects low opportunity density for government contractors, with minimal visible demand from federal agencies. Procurement, when it occurs, is likely embedded within broader institutional supply contracts rather than standalone solicitations. Contractors seeking entry should focus on niche opportunities within correctional, VA, or Department of Defense base exchanges where regulated tobacco distribution is permitted under federal guidelines, though competition remains minimal and procurement volumes are likely negligible.
Small Business Size Standard
The SBA threshold that decides who can bid NAICS 424940 work as a small business.
The SBA cap for this NAICS (13 CFR 121.201). A business at or under it can self-certify as small for work in this code, which is what makes it eligible for a small-business set-aside. The cap is set per NAICS, so the same company can be small in one code and not in another.
13 CFR 121.201, effective January 1, 2026. The SBA revises the table roughly once a year.
Competition
How many companies historically bid on federal awards in NAICS 424940, from bidder counts reported on USAspending.
Half or more of reported awards drew exactly one bidder, usually a sign of incumbent-held work rather than an open field. · 36 reported awards
Median Bidders
1
Per reported award, all-time
Single-Bid Awards
89%
Share of reported awards with one bidder
10+ Bidder Awards
0%
Share of reported awards with 10+ bidders
Reported Awards
36
92% of 39 total awards
Share of reported awards in each bidder-count bracket per federal fiscal year.
How this code compares up the NAICS hierarchy. Parent cohorts pool every code under their prefix, so they are the steadier baseline when a 6-digit sample is thin.
| Industry Family | Competition | Median Bidders | Single-Bid | Bidder Mix | Reported Awards |
|---|---|---|---|---|---|
424940This Code Tobacco Product and Electronic Cigarette Merchant Wholesalers | Usually Single-Bid | 1 | 89% | 3692% of 39 | |
42494NAICS Industry | Usually Single-Bid | 1 | 89% | 3692% of 39 | |
4249Industry Group Miscellaneous Nondurable Goods Merchant Wholesalers | Usually Single-Bid | 1 | 50% | 21,94785% of 25,874 | |
424Subsector | Moderate Competition | 4 | 9% | 3,024,03646% of 6,577,512 | |
42Sector Wholesale Trade | Moderate Competition | 3 | 18% | 7,852,24141% of 19,092,105 |
Bidder counts reported on past federal awards in this NAICS (USAspending). An open opportunity has no bidders yet, so this is the historical norm for similar work, not a fact about this solicitation. Not all awards report bidder counts, and fewer bidders often means incumbent-held work rather than an easier win. Federal reporting of bidder counts fell from ~96% of awards (FY2016) to ~30% (FY2018 onward); the chart shows shares of reported awards, and washed-out stretches mark years with fewer than 30 of them.
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