The global smokeless tobacco products market is expected to witness a CAGR of 7.2%, according to the new report by Grand View Research, Inc. Tobacco usage is regarded as a public health emergency that kills more than 8 million people every year, worldwide. Although tobacco in the form of a cigarette is commonly consumed, smokeless tobacco such as snus, moist snuff, and chewing tobacco is an increasingly growing concern across South-East Asian countries.
Globally, there are approximately 303 million adult smokeless tobacco consumers, and over 80% of them currently reside in the WHO South-East Asia region. The market products are known to cause numerous oral health conditions, oesophageal, oral, and pancreatic cancers, and an augmented risk of cardiovascular disorders, amongst several other health problems.
Amid the COVID-19 crisis, smokeless tobacco is increasingly becoming an even greater public health hazard. Another threat associated with the market products is the contact of fingers with the mouth or nasal area, which may surge the possibility of contacting coronavirus infection. Videos and infographics have been used to educate people and raise public awareness of the adverse health effects of spitting smokeless tobacco products during the pandemic.
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Further findings from the report suggest:
- The snuff segment accounted for the largest revenue share of 56.3% in 2018. The segment is further expected to experience a rise in sales owing to its adoption as a premium product category by consumers. Furthermore, its high product costs lead to an upsurge in the overall revenue
- The offline channel contributes to the highest revenue share of 86.0% in the year 2018. The segment’s growth is attributed to increase in offline sales due to a large consumer base who prefer purchasing via offline sales channels
- North America dominated the global regional segment in 2018, accounting for the largest revenue share of 37.9%. The regional market is driven by increase in demand for snuff products, particularly in the U.S.
The market is driven by robust growth of the tobacco sector in Asia Pacific and North America, along with rise in the sales of chewing types used in the industry. The growth is also attributed to growing middle class population leading to rise in the disposable income of consumers. These consumers tend to be attracted to lifestyle and cost effective products in the market. Moreover, growing purchasing power of consumers leading to adoption of premium types in the snuff segment with moist and dry forms is anticipated to drive the demand in market.
Increasing number of product launches in the snuff category such as without use of nicotine and less tobacco content in products will increase the demand for specialty and premium types in market. Moreover, impact of advertising campaigns, presence of a number of shops, cost effectiveness, and trendy lifestyle among consumers provide a lucrative opportunity for the global market.
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Demand for cost-effective products is increasing in the tobacco industry in India, South Africa, and Norway due to the growth of the premium snuff industry. This has led to an increase in product innovations and developments, thereby fueling its demand in the market. The market is identified by several strategic activities such as mergers and acquisitions, product innovations, and capacity expansion.
- Altria Group
- British American Tobacco
- Imperial Tobacco Group
- Gallaher Group Plc
- Universal Corporation
- Reynolds Tobacco Company
Key manufacturers in the industry include Altria Group, British American Tobacco, Imperial Tobacco Group, Gallaher Group Plc, Universal Corporation, and Reynolds Tobacco Company. For instance, in February 2018, Japan Tobacco Inc. launched a new smokeless product category as an alternative to cigarettes with an investment of around USD 917.43 million. The growth of the market is also attributed to a rise in premium and attractive packaging products in the market.
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North America is anticipated to witness significant growth due to presence of a large consumer base, inclination towards use of premium product categories including snuff packaged in ready to use pouches, along with growing product launches in the market. Moreover, rise in sales of chewing product has been observed in Asia Pacific due to its growing adoption among the younger age groups. For instance, in 2017, in India, around 20% of women were addicted to chewing product types and around 19.3% in Pakistan.
Grand View Research has segmented the global smokeless tobacco products market on the basis of product, distribution channel:
Smokeless Tobacco Products Product Outlook (Revenue, USD Billion, 2015 – 2025)
- Chewing Tobacco
Smokeless Tobacco Products Distribution Channel Outlook (Revenue, USD Billion, 2015 – 2025)
About Grand View Research
Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, we offer market intelligence studies ensuring relevant and fact-based research across a range of industries, from technology to chemicals, materials and healthcare.
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