Smokeless Tobacco Market Trends

 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.