Market Trends of Tobacco Industry
Rising Popularity for Low Tar, Nicotine Products
To reduce the use of conventional/combustible cigarettes, consumers in the region are increasingly using e-cigarettes, snuff, and low-tar cigarette products concurrently. Additionally, due to the fact that e-cigarettes mimic the experience of smoking conventional/combustible cigarettes, consumers are significantly using them to satisfy their nicotine addiction, which is driving the market. Additionally, with the growing popularity of vaping devices, flavor and fragrance vendors are introducing a wide variety of e-liquids to attract consumers. Different flavors, such as menthol, mint, chocolate, cola, bubble gum, and fusions of other fruits and flavoring substances, are luring many consumers to adopt these e-cigarette devices.
Furthermore, e-cigarettes, snus, and other products have lower levels of carcinogens compared to combustible smokers. In addition, increasing cases of tobacco-related cancer globally, most of which are linked to cigarette smoking, have led the public to seek alternatives. Hence, increasing health concerns, especially among the smoking population, are driving the market growth of less harmful tobacco products.
Asia-Pacific Holds a Significant Share in the Market
Asia-Pacific is one of the largest producers and consumers of tobacco globally, led by countries such as China and India. ITC is one of the biggest players in the Asian market in terms of cigarettes on the back of countrywide distribution and a large portfolio of brands. As cigarette companies cannot advertise, most rely on wide distribution and innovations to retain sales, including ITC. The regulations in countries such as India, for instance, the ban on the consumption of tobacco products in public places and also the rising availability of tobacco products in modern retail outlets in the region, are factors that are actively driving the growth of the tobacco market in the Asia-Pacific region. Smoking in Japan, though historically less restricted by law than in many other nations, has significantly changed in recent years. However, Japanese players implemented the TAPSO vending machine system, which required that people purchasing cigarettes from vending machines have identification cards verifying their age.
