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Smokeless Tobacco Products Market Generate Revenue Of $22.2 Billion By 2025: Grand View Research, Inc.

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Smokeless Tobacco Products Market Generate Revenue Of $22.2 Billion By 2025: Grand View Research, Inc.

September 30
00:11 2019
Smokeless Tobacco Products Market Generate Revenue Of $22.2 Billion By 2025: Grand View Research, Inc.

Grand View Research, Inc. – Market Research And Consulting.
According to report published by Grand View Research,The smokeless tobacco products market is driven by consumer attraction towards new products and trendy packaging, especially in the chewing tobacco segment.

According to a report,“Smokeless Tobacco Products Market Size, Share & Trends Analysis Report By Product (Chewing Tobacco, Snuff), By Distribution Channel (Online, Offline), By Region, And Segment Forecasts, 2019 – 2025”, published by Grand View Research, Inc., The global smokeless tobacco products market size is expected to reach USD 22.2 billion by 2025, expanding at a CAGR of 7.2% over the forecast period. The market is driven by consumer attraction towards new products and trendy packaging, especially in the chewing tobacco segment. Moreover, drastic changes in promotion and advertising of chewing tobacco in countries such as Algeria and South Africa have increased the demand over the forecast period.

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.

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.

Growing demand for long lasting products among consumers will increase the growth of the chewing type in market. Moreover, increasing focus of the leading players on chewing product types due to its wide adoption in Asia Pacific countries will fuel its demand in the market. Companies are taking up strategies such as product launches and expanding their capacity so as to increase the market value of their product types in the market. The market is recognized by a few initiatives such as mergers and acquisitions, online sales, limited extension, and developments endeavored by the key players in the business including Altria Group, British American Tobacco, Imperial Tobacco Group, Gallaher Group Plc, Universal Corporation, and Reynolds Tobacco Company.

Key Takeaways from the report:

  • By product, chewing tobacco is projected to ascend at a CAGR of 8.1% over the forecast period. The snuff segment dominated the market with an share of 56.3% in 2018

  • North America dominated the global smokeless tobacco products market in 2018, accounting for 37.9% share of the total revenue. This trend is projected to continue over the next few years

  • Growing industry on account of rise in trendy lifestyle and variation in flavors mainly in developing countries are further expected to propel the market growth

  • The APAC market is anticipated to witness growth due to increasing disposable income in India, South Korea, China, and Japan

  • The industry is highly competitive in nature with the main players including Altria Group, British American Tobacco, Imperial Tobacco Group, and Gallaher Group Plc

  • Various manufacturers are concentrating on new product launches, capacity expansion, and product innovation to estimate existing and future demand patterns from upcoming product segments.

U.S. smokeless tobacco products market size, by product, 2015 - 2025 (USD Billion)

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Global smokeless tobacco products market share, by distribution channel, 2018 (%)

Regional Insights

North America held the largest share of 37.9% in 2018. The market is driven by rise in demand for snuff products in U.S., along with different types of forms such as moist and dry types. For instance, the moist snuff market in U.S. grew from 1.37 million cans in 2013 to about 1.5 million cans in 2017 and is anticipated to expand at a CAGR of 6.1% over the forecast period. Moreover, rise in expenditure on dissolvable product types in form of sticks and strips in U.S. is anticipated to boost the regional market growth over forecast period.

Asia Pacific is expected to register the highest CAGR of 8.7% over the forecast period on account of rising sales of low priced chewing tobacco products in countries such as India, Bangladesh, and Pakistan. For instance, in 2018, the India chewing tobacco industry was estimated to expand at a high CAGR over the forecast period. Demand is anticipated to rise due to adoption of products by women and old age population in India and Pakistan. Women contributes to about 19.3% and 20% of consumption of chewing tobacco products such as leaf and pan masala in Pakistan and India, respectively.

Smokeless Tobacco Products Market Share Insights

Demand for cost effective products is increasing in the tobacco industry in India, South Africa, and Norway due to growth of the premium snuff industry. This has led to an increase in product innovations and developments, thereby fueling its demand in market. The market is identified by several strategic activities such as mergers and acquisitions, product innovations, and capacity expansion.

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 rise in premium and attractive packaging products in the market.

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About Grand View Research, Inc.

Grand View Research provides syndicated as well as customized research reports and consulting services on 46 industries across 25 major countries worldwide. This U.S.-based market research and consulting company is registered in California and headquartered in San Francisco. Comprising over 425 analysts and consultants, the company adds 1200+ market research reports to its extensive database each year. Supported by an interactive market intelligence platform, the team at Grand View Research guides Fortune 500 companies and prominent academic institutes in comprehending the global and regional business environment and carefully identifying future opportunities.

For more information: www.grandviewresearch.com

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