Smokeless Tobacco Market Size

Global Smokeless Tobacco Market Overview

Smokeless Tobacco Market Size was valued at USD 20.8 billion in 2022. The Smokeless Tobacco market industry is projected to grow from USD 21.7 Billion in 2024 to USD 28.6 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 4.67% during the forecast period (2024 - 2030). The growing awareness of the less harmful effects of smokeless tobacco and the increase in smoking bans across the globe are some of the key market drivers boosting this market.

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Smokeless Tobacco Market Trends

• Factors boosting the market growth of Smokeless Tobacco

Smokeless tobacco is anticipated to be driven by a variety of factors, including its ease of use, affordability, pleasant flavor, and reduced health risks when compared to smoking tobacco. Different customers are drawn to smokeless tobacco due to the variety of flavors available, depending on their personal preferences. Further, this product has twice as much nicotine as the average cigarette, which attracts users who consume high doses of nicotine and raises market demand for it.

 The easy availability of these types of cigarettes is likely to add to the market upsurge. Escalation in banning smoking cigarettes and strict enforcement of no-smoking norms by governments can contribute to the rise of the smokeless tobacco market. The surge in preference for nicotine-free smokeless tobacco products and the increase in consumption of chew bags filled with smokeless tobacco can generate multiple scopes of expansion for the market.

Additionally, Issues with the approval of innovation by regulatory bodies and strict regulatory framework can hinder market growth. In addition, an increase in measures taken to prevent the illegal trading of tobacco can pose a challenge to market expansion. The product demand will be burgeoning in the coming years, considering the ease of use, regulatory sights, and cost. Government authorities in several nations are increasing the excise duty on cigarettes. Consumers are, therefore, compelled to go for alternatives like smokeless tobacco products, given the rising cost of cigarettes; they also come in various added flavors such as apple, peach, strawberry, honeydew, honeysuckle, pineapple, prune, and champagne which is why it has enhanced the Smokeless Tobacco market CAGR and Smokeless Tobacco market revenue across the globe in the recent years.

Smokeless Tobacco Market Segment Insights

Smokeless Tobacco Type Insights

The smokeless tobacco market segmentation, based on type, includes chewing tobacco, dipping tobacco, and dissolvable tobacco. The chewing tobacco segment held the majority share in 2022 with respect to the Smokeless Tobacco market revenue. This is mainly due to the increasing demand for loose leaves, chew bags, and plugs. The easiness of consumption offered by chewing bags can gain high traction for different solutions that are present in the market, which can cause the smokeless tobacco market to enlarge.

January 2022: Turning Point Brands Inc., another tobacco products (OTP) provider in the US, witnessed a jump in its market share.

Smokeless Tobacco Form Insights

The smokeless tobacco market data has been bifurcated by form into moist and dry. Market growth the dry segment dominated the market in 2022 and is anticipated to rise at 4.67% CAGR during the analysis period. The rise in use of dry tobacco and their growing preference among millennials can support the market growth in the analysis period.

January 2022: Philip Morris International Inc., cigarette production company and an American MNC tobacco, made a considerable amount of investment to improve its product portfolio by the introduction of e-cigarettes and nicotine pouches, among others. This approval has further broadened the growth opportunity for the Smokeless Tobacco industry.

Figure 1:  Smokeless Tobacco Market, by Form, 2022 & 2030 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Additionally, snuff is finely ground tobacco that may be dry or moist. It's packaged in tins or pouches. It may be flavored. A pinch of snuff is placed along the gumline, either behind the lip or between the gum and cheek. Using snuff is also called dipping. Dry snuff can be snorted.

Smokeless Tobacco Route Insights

Based on the route, the smokeless tobacco industry has been segmented into oral and nasal. The oral held the largest segment share in 2022 and is likely to register a 4.67% CAGR through the forecast period. Oral is the usually preferred route of use| of smokeless tobacco; thus, increase in sales of oral tobacco consumption is expected to cause the market expansion at a high excellent growth pace.

Smokeless Tobacco Regional Insights

By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The Asia-Pacific smokeless tobacco market accounted for USD 19.3 billion in 2022 and is expected to exhibit a significant CAGR growth during the study period. This is due to increasing sales of economic chewing tobacco products in nations like India, Bangladesh, and Pakistan; Asia Pacific is anticipated to have the highest CAGR. The decline in cigarette smokers in the Asia Pacific region is one of the major drivers of smokeless tobacco's explosive growth.

Further, the major countries studied in the market report are The U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2:  SMOKELESS TOBACCO MARKET SHARE BY REGION 2022 (%)Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Europe’s smokeless tobacco market accounts for the second-largest market share due to the increasing consumption of smokeless tobacco and its easy availability of the same. Further, the German smokeless tobacco market held the largest market share, and the UK smokeless tobacco market was the fastest-growing market in the European region.

The North American smokeless tobacco Market is expected to grow at the fastest CAGR from 2022 to 2030. This is due to in demand for snuff products in the U.S., For instance, the moist snuff market in the U.S. grew from 1.37 million cans in 2013 to about 1.5 million cans in 2017. Moreover, the U.S. smokeless tobacco market held the largest market share, and the Canadian smokeless tobacco market was the fastest-growing market in the Asia-Pacific region.

Smokeless Tobacco Key Market Players & Competitive Insights

Major market players are expending a lot of money on research and development to increase their product lines, which will assist the smokeless tobacco market to grow even more. Competitors are also taking a variety of strategic initiatives to increase their footprint, with key market developments such as new product launching, contract-based agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Participants in the smokeless tobacco industry must provide cost-effective products to enlarge and survive in a highly competitive market environment.

One of the prime business strategies adopted by producers in the smokeless tobacco industry to satisfy clients and enlarge the market sector is to produce locally to lessen operating costs. In recent years, the smokeless tobacco industry has provided some of the most significant benefits. The smokeless tobacco market major players such as Altria Group Inc. (U.S.), British American Tobacco PLC (U.K), Imperial Brands PLC (U.K), Japan Tobacco Inc. (Japan), and others are working on expanding the market demand by investing in R&D activities.

Altria Group Inc. (U.S.) George Weyman opened his tobacconist shop in Pittsburgh in 1822; he had no idea he was taking the first steps toward creating the U.S. Smokeless Tobacco Company. Through subsidiaries, it manufactures and sells cigarettes and other tobacco products, including cigars and pipe tobacco. Altria holds an interest in a brewery company.

British American Tobacco (BAT) was established in 1902 when the Imperial Tobacco Company and the American Tobacco Company formed a new joint venture. Headquartered in London in the United Kingdom (UK), its businesses operate in all regions of the world. BAT is a leading consumer-centric, multi-category consumer goods business dedicated to stimulating the senses of adult consumers worldwide. They provide a wide choice of high-quality and stimulating products for every mood and moment and brands they can trust that are manufactured to high quality and safety standards. They are transparent, clear, and accurate information, based on robust science, about the relative risks and responsible marketing that doesn’t engage or appeal to youth.

Key Companies in the Smokeless Tobacco market include

• Altria Group Inc. (U.S.)


• 
  British American Tobacco PLC (U.K)


• Imperial Brands PLC (U.K)


• Japan Tobacco Inc. (Japan)


• Swedish Match AB (Sweden)


• Swisher International Group Inc. (U.S.)


• MacBaren Tobacco Company A/S (Denmark)


• Dharampal Satyapal Limited (India), among others

Smokeless Tobacco Industry Developments

November 2019: British American Tobacco (BAT) stated that it had signed an improved collaboration agreement with McLaren as the 2019 Formula 1 season comes to a close, despite having only recently entered into a multi-year worldwide partnership with the legendary racing team. The strengthened collaboration will aid in the acceleration of BAT's transition, which is centered on the company's commitment to expanding its portfolio of New Category products. The collaboration provides an exciting platform to raise awareness of these New Category products, which have the potential to be less dangerous than cigarettes for millions of smokers around the world.

September 2020: JTI (Japan Tobacco International) has extended its technological strategic alliance with Sauber Engineering AG (SEN), a technology and prototype development leader and member of the Sauber Group of Companies. Through this collaboration, both firms will continue to work together on precise engineering projects aimed at improving the performance of the next generation of JT Group products.

Smokeless Tobacco Market Segmentation

Smokeless Tobacco Type Outlook

• Chewing Tobacco


• Dipping Tobacco


• Dissolvable Tobacco

Smokeless Tobacco Form Outlook

• Moist


• Dry

Smokeless Tobacco Route Outlook

• Oral


• Nasal

Smokeless Tobacco Regional Outlook

• North America


• US


• Canada


• Europe


• Germany


• France


• UK


• Italy


• Spain


• Rest of Europe


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America