Smokeless Tobacco Products Market Size, Share, Growth and Trend Analysis Report
by Susan Hill Business ConsultantThe
global smokeless tobacco products market size is expected
to reach USD 22.2 billion by 2025, according to a new report by Grand View
Research, Inc., 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.
Further key
findings from the study suggest:
- 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.
Access
full research report on global smokeless tobacco products market:
www.grandviewresearch.com/industry-analysis/smokeless-tobacco-products-market
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Created on Dec 26th 2019 04:50. Viewed 305 times.