Global Smokeless Tobacco Market Analysis & Forecast, 2016-2025

Due to relentless efforts from governments and health organizations worldwide the smoking population has been declining globally since 2010, however smokeless tobacco products, escaping the regulatory sight have witnessed a steady rise in consumption. Smokeless tobacco products are a small category of tobacco products that are not burnt on consumption. Although smokeless tobacco were perceived to challenge the combustible cigarette market, the entry of Big Tobacco converted the competition into alliance.

The report on ‘The Smokeless Tobacco Industry’ is a meticulous compilation of the various facets of the smokeless tobacco industry. After a thorough analysis of the current trends, the market dynamic chapter includes the key push and pull forces prevailing in the global smokeless tobacco market. Owing to the dependency of the market growth on the legal and regulatory framework, the report at each step has considered the effect of laws (both implemented and anticipated) in terms of regulations and taxation in estimation and forecast of the market size.

Big Tobacco companies have acquired smokeless tobacco brands in both the U.S. and Scandinavian region as well as rolled out their own products. Having identified the concentrated nature of the market, with few companies controlling majority of the market share, the market  share for top companies including Reynolds American, Imperial Tobacco, Altria and Swedish Match among others has been given for the U.S. moist snuff market and Scandinavian snus market.

The smokeless tobacco market is anticipated to grow due to growing smoking bans and awareness associated with cigarette consumption.  The product choices are expected to evolve based on ease of use, cost and regulatory sights. Therefore, the smokeless tobacco market estimation and forecast has been initiated with an exhaustive set of assumptions, following which market size information for both key geographical areas and key products has been provided. 

The report involves a mix of companies chosen on the basis of their market developments, revenue generation and market share in the industry. The companies profiled in the report include Altria, Imperial Tobacco, BAT, Swedish Match, JMJ Group, Manikchand Group and Swisher among others.

Smokeless tobacco products are a small but growing segment of the tobacco industry, which is currently dominated by cigarette sales. Implementation of smoking bans in public spaces and rise in cigarette taxes has tobacco consumers turning to alternative products to satisfy their nicotine cravings leading to a steady rise in percentage of smokeless tobacco users in the recent years.

Smokeless tobacco products are tobacco products that are not burnt on consumption, but either chewed on, sucked or sniffed, and spat out once the tobacco juice has been absorbed by the body through the mouth or nasal lining. Although many variants of these products are found worldwide, they can be clubbed largely into four product types, namely chewing tobacco, dipping tobacco, nasal sprays and dissolvables. 

However, a global market for smokeless tobacco products does not exist and prevalence of use remains centered to certain geographically regions where these products have been used traditionally.

The Asia Pacific region, being one of the largest consumers of tobacco, demonstrates the highest percentage of smokeless tobacco users. It holds the largest market share, XX%, of the global market with a value of $XX billion and is expected to continue leading the market throughout the forecast period, growing at the fastest CAGR of XX% from 2015 to 2025. It is followed by North America, which consists primarily of the U.S. market, amounting to $XX billion and growing at a steady CAGR of around XX% throughout the forecast period. Scandinavia, though boasts of high snus prevalence, is a smaller market due to their small population as compared to other regions.

In Sweden and Norway, Swedish Match controlled more than 85% of the snus retail volume in 2010.,  However with the entry of Japan Tobacco, BAT and Altria have significantly reduced its share in recent years, to less than 65% in 2015. Swedish Match also competes with Big Tobacco in the U.S. market of moist snuff, where Altria is the leading player with 54.31% market share, followed by Reynolds American.

The market is expected to be driven by their lack of restriction in public use in contrast to cigarettes, their easy availability, and their cheap cost among others. However, the growth of the industry will be impeded by strict restriction on advertisement and marketing and growing awareness about negative health consequences associated with tobacco use.