Copyright © 2024 Research Nester. All Rights Reserved
Smokeless Tobacco Market size was valued at USD 14.52 billion in 2023 and is likely to cross USD 19.76 billion by 2036, registering more than 2.4% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of smokeless tobacco is estimated at USD 14.8 billion.
The regulatory pressure against smoking tobacco has forced tobacco companies to look beyond conventional smoking tobacco and start investing in the production of smokeless tobacco which has been gaining interest all over the world. The primary factor for the growth of the market can be attributed to the adoption of flavoured smokeless tobacco by the younger generation. Moreover, the convenience in the consumption of tobacco chewing bags adds up to the popularity of these products.
Growth Driver
Increasing Demand for Flavoured Tobacco Products to Boost Market Growth
Smokeless tobaccos do not have similar prevalence as that of smoking but still smokeless tobacco market is expected to witness growth owing to the rising popularity of new innovative and flavoured products such as peach, apple, honeydew, strawberry, pineapple, honeysuckle, champagne, and prune. With these new flavoured products, smokeless tobacco has been adopted by a new demographic of young and high income group people.
Increasing Demand for Dry Tobacco Products to Drive Growth
Smokeless tobacco market for dry smokeless tobacco is expected to grow on the back of government’s initiatives to reduce cigarette consumption by increasing prices and imposing additional taxes on the cigarette. In countries such as India and Japan government have increased tax on cigarettes. Consumers will be inclined to opt for alternatives such as smokeless tobacco products as they cannot afford to buy cigarettes on a regular basis.
Challenges
Raising Health Concerns May Hamper Growth
According to the World Health Organization (WHO), the tobacco epidemic is one of the biggest public health threats around the world. Moreover, it also states that tobacco kills more than 8 million people each year.
Moreover, people are becoming more health conscious and amid these times of coronavirus pandemic, everyone is looking to boost their immunity. In such environment demand for tobacco products may took a hit.
Government Regulations Over Tobacco Consumption to Hamper Market Sales
Governments in many countries have banned the consumption of tobacco over the concern of covid-19. Increased production of saliva while chewing tobacco creates an urge for spitting which may enhance coronavirus spread. Due to this sales of tobacco products are expected to go down and it is very difficult to say anything about the longevity of these regulations considering the uncertainty of COVID-19.
|
Base Year |
2023 |
|
Forecast Year |
2024–2036 |
|
CAGR |
2.4% |
|
Base Year Market Size (2023) |
USD 14.52 billion |
|
Forecast Year Market Size (2036) |
USD 19.76 billion |
|
Regional Scope |
|
The smokeless tobacco market is further segmented by type, form, route, distribution channel, and region. The tobacco type segment is further divided into chewing, snuff, dipping and dissolvable tobacco segments. On the basis of type, chewing segment holds a significant market share owing to its availability in different categories such as loose leaf, plug, twist, chew bags and others. Snuff segment also holds a significant market share and it is expected to record a growth in sales owing to its adoption as a premium category by the consumers.
On the basis of form, dry segment holds a dominant position and it is expected to show significant CAGR over the forecast period owing to its cost effectiveness and convenience of usage. Most of the smokeless tobacco types are manufactured in dry form and the increasing number of manufacturing units will expand the market for dry smokeless tobacco which will further boost the market for smokeless tobacco market.
Our in-depth analysis of the global market includes the following segments:
|
By Type |
|
|
By Form |
|
|
By Route |
|
|
By Distribution Channel |
|
On the basis of regional analysis, the global smokeless tobacco market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region.
Currently, North America industry is predicted to dominate majority revenue share by 2036, backed by increasing demand for snuff products, along with availability in different type of forms such as moist and dry. Asia-Pacific region is expected to record maximum CAGR in the forecast period on account of rising sales of low priced chewing tobacco products in countries such as India, Bangladesh, and Pakistan. Demand for premium snuff type products is increasing in India, South Africa and Norway on the back of changing consumer behaviour. Middle-East, Africa and Latin America regions are expected to show low to moderate growth in the smokeless tobacco market.
Author Credits: Radhika Pawar
Copyright © 2024 Research Nester. All Rights Reserved
FREE Sample Copy includes market overview, growth trends, statistical charts & tables, forecast estimates, and much more.
Have questions before ordering this report?