ID: MRFR/HC/5662-HCR | 90 Pages | Published By Kinjoll Dey on March 2023
Market Research Future (MRFR) studied the Smokeless Tobacco Market is projected to reach USD 20246.95 Million by 2030 at 4.5% CAGR during the forecast period 2022-2030. Smokeless tobacco is one type of tobacco that is not smoked or burned. It is used as inhaled or chewing tobacco or moist snuff as dry snuff through smoke, popularly known as a cigarette.
The chewing tobacco type is expanding in the present scenario due to the growing demand for a twist, chew bags, loose-leaf, and plugs. In the upcoming years, the Smokeless Tobacco Market is predicted to expand more because the chewing bags offer the high convenience of consumption that is easily available in the global market. Moreover, the dipping tobacco type is also witnessing high growth due to the growing consumption of dry snuff, suns, and moist snuff across the world population. Recently, the strict enforcement of no smoking norms and the ban of the smoking cigarette by the government have contributed to boosting the Market Growth in the review timeframe.
Nowadays, consumers highly prefer smokeless tobacco compared to traditional tobacco products because of the convenience in tobacco-chewing bags consumption. The recent report of the global Smokeless Tobacco Market mentioned that Denmark is contributing significant growth in smokeless tobacco consumption because of changing needs of the consumers.
COVID-19 Impact Analysis
The unprecedented COVID-19 pandemic has affected the Smokeless Tobacco Market like any other marketing sector. At this time, the lack of workforce, production, transportations, and investments has negatively affected the growth of the current market. Even the supply chain and value chain have been disrupted in the Smokeless Tobacco Market.
However, the unlock phase has brought hope to the global market to show their efforts again. At this time, the global market players have adopted new strategies and ideas to thrive in the present Smokeless Tobacco Market in the future.
Major Drivers of the Market
The present Smokeless Tobacco Market Outlook report explains that this global market has a high potential to expand its supply due to the rising awareness regarding smokeless tobacco's less harmful effects. Moreover, the current global market can surge up to its demands because of the easy availability of these cigarettes types.
As per the CDC report, nearly 1 in every 100 adults (26 years or older), i.e., 1.2%, nearly 4 in every 100 young adults (18–25 years), i.e., 3.9%, and nearly 1 in every 100 youth (12–17 years), i.e., 1.1% are the current users of other tobacco product or the smokeless tobacco in the U.S. This reflects the high demands of smokeless tobacco products among the youths, surging the Smokeless Tobacco Market Share in the forecast timeframe.
Opportunities of the global market
Recently, North American Government has announced an initiative to curb cigarette consumption by imposing extra taxes and hiking prices on cigarettes. As a result, this can affect the traditional cigarette and bring more opportunities for the Smokeless Tobacco Market in the region.
Moreover, the Smokeless Tobacco Market has more growth opportunities due to the rise in chew bags consumption filled with smokeless tobacco and the increase in demand for nicotine-free smokeless tobacco products.
The Smokeless Tobacco Market might hinder its market growth due to the approval of innovation issues by the strict regulatory framework and regulatory bodies.
Moreover, the global market might get hampered because of the implementation in restriction of new products marketing. In addition, the cost factor can also be the major market restraint for the global Market Trends.
Market Growth challenges
The global Market might face challenges to expand the global market because of the growing measures to prevent illegal tobacco trading by several organizations.
The present Market Growth has negatively affected the COVID-19 period as it has disturbed all the supply chains and value chains of the global market.
Cumulative growth Analysis
In the Market Trends, the current situation of the global market is projected to evident the significant annual growth during the assessment timeframe.
The major contribution given to the market growth is by the market giants of various parts of the countries who are working hard to reach all the needs of the consumers and expand its market growth. Hence, the Smokeless Tobacco Market is employing new market players to thrive the value of the market.
Market Segment Overview
In terms of type segment, the global Smokeless Tobacco Market has been classified into Dissolvable Tobacco, Chewing tobacco (twist, chew bags, loose-leaf, plug, and others), and Dipping Tobacco (dry snuff and moist snuff).
Among all, the chewing tobacco segment is projected to register a higher Smokeless Tobacco Market Revenue of nearly USD 9.96 Bn by the forecast period of 2023. Further, this segment is predicted to grow at 4.30% CAGR in the research period.
Depending upon the form segment, the global Market has been segregated as Dry and Moist.
Out of all segments, the dry form segment is projected to expand at 4.46% CAGR in the analysis period of 2017 to 2023. This segment is showing more expansion in the analysis period due to the rising preference for dry tobacco among millennial and the growing consumption.
Based on the route segment, the global Smokeless Tobacco Market has been categorized into Nasal and Oral.
As per the Market Analysis, the oral segment will acquire at a 4.52% CAGR during the assessment period. In general, the most demanded route of smokeless tobacco consumption is the oral route. Hence, oral tobacco consumption is fueling its sales and is estimated to grow the global Market on a large scale.
The global Market has been categorized into various regional parts such as Asia Pacific, North America, Latin America, Europe, and the rest of the world.
The Market Outlook report explains that Asia Pacific regional market is expected to account for a 4.55% CAGR in the review period. This regional market is projected to grow due to the high consumption of smokeless tobacco in the region. For instance, a country like India holds nearly 71.6% of Smokeless Tobacco Market Share and 4.75% of CAGR during the forecast period of 2023. In addition to this, the North American regional market is expected to account for the higher global Market Size in the assessment timeframe due to several governmental initiatives related to the consumption of traditional cigarettes that fuels Smokeless Tobacco consumption in the region. Along with this, this regional market is thriving because of well-established tobacco companies whoop are generating decent Market Size the review timeframe.
Competitive Landscape Analysis
According to the Smokeless Tobacco Market Analysis, high competition can be evident in the global market where the market giants are making more efforts in showing their presence in the competition. These market giants are:
The global Smokeless Tobacco Market giants is the strength of the market that are applying different tactics and methods to enhance the market value and increase the supply chain in different parts of the globe. Further, the global market's competitive intelligence explains the market share analysis, product benchmarking, and financial analysis.
In January 2021, a U.S.-based other tobacco products (OTP) provider known as Turning Point Brands Inc. has witnessed higher expansion in its market share extensively.
In January 2021, an American MNC cigarette and tobacco production company called Philip Morris International Inc. invested more in research and developments to introduce nicotine pouches and e-cigarettes in the world population.
In January 2021, the Food and Drug Administration finalized the new tobacco products authorization guidelines.
The Smokeless Tobacco Market Forecast report explains that qualitative and quantitative analysis has been conducted to measure the performance of the current market. In this report, the market dynamics, segment, regional analysis, overview, covid-19 analysis, competitive analysis, and recent developments have been included to get the overall understanding of the global Smokeless Tobacco Market.
Further, the Market Forecast report highlights that the market giants are the key strengths of the global market competing to bring better scope for the present market.Segmental Table:
Smokeless tobacco treatment market is projected to grow at a 4.5% CAGR between 2022-2030.
The Americas is expected to lead the smokeless tobacco treatment market.
Increasing FDA drug approvals and strong clinical pipeline are the key factors driving the smokeless tobacco treatment market.
Lack of awareness and changing regulatory framework may limit the smokeless tobacco treatment market.
Eminent players profiled in the smokeless tobacco treatment market include Veracyte, Inc, Fertin Pharma, Cambrex Corporation, Perrigo Co. Plc., Habitrol, Yesmoke, Cigna, Novartis, Johnson & Johnson Services Inc., GlaxoSmithKline plc., and Pfizer Inc.