Smokeless Tobacco Market: Current Analysis and Forecast (2022-2028)

The smokeless tobacco market is expected to register a CAGR of around 5% over the period of 2022-2028. Smokeless tobacco refers to tobacco that is not burned or smoked and contains nicotine and other carcinogenic chemicals. Products are consumed orally or nasally and are available in various forms or types on the market. Most smokeless tobacco products are also consumed by chewing, snorting, or placing tobacco between the gums and the teeth of the mouth. The growing adoption of smokeless tobacco can be attributed to the easy availability of these types of products which are highly addictive, contain nicotine, and are available in various forms of consumption, but are correlated to have certain adverse effects on the individual's life and health such as, increases the risk of cancer of the mouth, throat, and pancreas. Smokeless tobacco also increases the risk of developing small white patches in your mouth called leukoplakia. According to the CDC In 2020, the percentage of adults who reported current use of smokeless tobacco was highest among people living in the South U.S (2.7%) and the Midwest U.S (2.6%). Furthermore, the smokeless tobacco market is anticipated to grow on account of the growing awareness among individuals worldwide of the harmful effects of smokeless tobacco.

Smokeless tobacco is gaining interest in most parts of the world, where it is seen that the major tobacco companies of the world are investing more in its production, due to the implication of pressure. legislation on tobacco. As mentioned above, smokeless tobacco comes in a variety of flavors that appeal to young people. For example, In September 2020, JTI (Japan Tobacco International) 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.

Altria Group Inc., British American Tobacco PLC, Imperial Brands PLC, Japan Tobacco Inc., Swedish Match AB, Swisher International Group, Philip Morris International, Mac Baren Tobacco company, Reynolds American, Inc., Universal Corporation Ltd are some of the key players in the market. Several M&As along with partnerships have been undertaken by these players to facilitate customers with hi-tech and innovative products/technologies.

Insights Presented in the Report:

"Amongst Products, the chewing category accounted for the majority share in the market in 2020"

Based on the product, the market is classified into chewing, dipping, dissolvable, snuff, and others. Amongst products, the chewing category accounted for a significant share in the market owing to the rising demand for loose leaf, chew bags add a boost to this segment of the smokeless tobacco market. The high consumption convenience provided by chewing bags can attract a great deal of attention to the various solutions available on the market, which can lead to the expansion of the smokeless tobacco market. In addition, the low and effective pricing of chewing tobacco products is likely to boost the growth of the segment.

"Among Forms, the dry is expected to witness considerable CAGR during the forecast period"

Based on form, the market is categorized into dry and moist. Among these, dry is expected to witness the highest CAGR during the forecast period. This is due to the increase in the preference and rise in consumption of dry tobacco among the young generation contributing to the growth of the segment. Moreover, the longer shelf life of dry tobacco as compared to moist one is likely to aid the segment of the market growth.

"Amongst Route, the oral category accounted for the majority share in the market in 2020"

Based on the route, the market is classified into oral and nasal. Amongst these, the oral category accounted for a significant share in the market because of the growing demand for chewing tobacco as oral is the usually preferred route of consumption of smokeless tobacco contributing to the growth of the segment. For example, New oral nicotine products, often called Modern Oral Nicotine by the tobacco industry, have been emerging among big tobacco companies (e.g. RJ Reynolds, Swedish Match, and British American Tobacco). These typically come in the form of pouches but can come in other forms like dissolvable tablets.

"Amongst Distribution Channels, the offline store category accounted for the majority share in the market in 2020"

Based on distribution channels, the market is classified into offline stores and online stores. Amongst distribution channels, the offline stores category accounted for a significant share of the market. This can be attributed to the possibility of checking the quality of products in retail stores before purchasing which accelerates the growth of this segment. In addition, the growing number of tobacco stores, attractive packaging, and savory trendy products are contributing factors to the offline sales of smokeless tobacco products.

"Asia Pacific to witness significant growth during the forecast period"

For a better understanding of the market dynamics of the smokeless tobacco market, a detailed analysis was conducted for different regions across the globe including North America (the U.S, Canada, and the Rest of North America), Europe (Germany, France, Spain, United Kingdom, Italy, and Rest of Europe), Asia-Pacific (China, India, Australia, Japan, and Rest of APAC), Rest of World has been conducted. Asia Pacific constitutes a major market for the smokeless tobacco market industry and generated revenue owing to the increase in consumption of smokeless tobacco in the region. Reasons to buy this report:

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Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry.

The study comprehensively covers the market across different segments.

Deep dive regional level analysis of the industry.

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