Smokeless Tobacco Market Size
| Study Period | 2019-2029 |
| Market Size (2024) | USD 14.61 Billion |
| Market Size (2029) | USD 16.41 Billion |
| CAGR (2024 - 2029) | 2.36 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Smokeless Tobacco Market Analysis
The Smokeless Tobacco Market size is estimated at USD 14.61 billion in 2024, and is expected to reach USD 16.41 billion by 2029, growing at a CAGR of 2.36% during the forecast period (2024-2029).
- Although smoking is prohibited in many countries, the consumption of smokeless tobacco is permitted, which results in encouraging and shifting consumer demand from smoking to smokeless tobacco. Moreover, using snus and chewing tobacco is considered a traditional practice across various countries such as Sweden, Norway, India, and others, encouraging consumers to prefer smokeless tobacco over smoking, in turn propelling the market growth during the forecast period.
- Moreover, the rising popularity of smokeless tobacco products due to the ease of the application it provides to its users is a significant factor driving the market. The ease with which the product can be used anywhere, as compared to cigarettes, which cannot be smoked in public or no-smoking zones due to the negative impacts of combustion, has played an essential role in promoting the use of smokeless tobacco. The use of these tobacco products is known to be rising, especially among young people, in several Nordic countries and Estonia.
- The market is strongly affected by government regulations in different countries relating to smokeless tobacco products, which affects the market growth either positively or negatively. In countries like Australia, New Zealand, the United Arab Emirates, and several countries under the European Union, the sales of smokeless tobacco products is prohibited, thereby, restraining the market growth in these regions. Whereas in countries like the United States, the government makes efforts to regulate the manufacturing, marketing, sales, and distribution of tobacco products, thereby, creating an opportunity for the growth of smokeless tobacco products in the market.
Smokeless Tobacco Market Trends
Growing Prevalence of Smokeless Tobacco Supported by Growth in Production of Tobacco
- Smokeless tobacco products are being embraced as potential tools for smoking cessation or substitution, providing consumers with an alternative option to transition away from conventional combustible cigarettes. The increasing awareness about the implications of cigarette smoking and exposure to passive smoke is a pivotal driver in steering individuals towards smokeless alternatives. Smokeless tobacco products are perceived to be less harmful than traditional smoking, which in turn contributes to the expanding market share of these products. There has been a discernible increase in tobacco consumption, with a growing number of individuals participating in smoking activities owing to evolving social attitudes and lifestyle choices among men and younger consumers.
- For instance, in November 2023, according to the National Youth Tobacco Survey (NYTS) in the United States, 1.5% of high school students reported using smokeless tobacco products. Among high school boys, 2.1% used smokeless tobacco products in the past 30 days. Moreover, the increasing production of tobacco globally serves as a cornerstone for the growth of the smokeless tobacco industry as it ensures a stable supply chain and facilitates innovation and market expansion to fulfill the demand for smokeless tobacco products among consumers. For instance, according to the Food and Agriculture Organization, global tobacco production is estimated to be 5,888.76 thousand metric tons in 2021, which increased from 5,813.28 thousand metric tons in 2020. In conclusion, the growing demand for smokeless tobacco products for smoking cessation or substitution among consumers, especially millennials and the younger generation, supported by the rising production of tobacco globally, is supporting the growth of the market in the studied period.
North America Stands to be the Largest Market
- The smokeless tobacco market is projected to grow at a decent phase in the forecast period, owing to favorable regulation, perceived low risk against other tobacco products among consumers, and strong penetration of global brands in the region. Favorable government regulations supporting the sales of smokeless tobacco products in the regional market, especially the United States market are expected to escalate the market demand further. Moreover, along with the sales opportunity, the concerned organizations also offer marketing and promotion opportunities to prominent manufacturers, thereby, propelling the growth of the market studied. For instance, in March 2023, the United States Food and Drug Administration (FDA) authorized Copenhagen Classic Snuff, a loose, moist snuff, to be marketed as a modified risk tobacco product (MRTP) in the market concerned. The product was earlier marketed without modified risk information in the country.
- Further, in the Canadian market, in March 2022, the United Conservative Party of Alberta, Canada, lowered its tax rate on smokeless tobacco, including products like chewing tobacco and snuff. These products were earlier taxed at 41.25 cents per gram, while the new rate decreased it to 27.5 cents per gram, making it similar to the cigarette tax rate in the Alberta province. Additionally, the market witnesses the presence of classic as well as flavored smokeless tobacco, suiting the changing demands of consumers. Manufacturers offer these tobacco products in flavors such as mint, cherry, citrus, wintergreen, and others as per market requirements, in turn, propelling the market growth.
Smokeless Tobacco Industry Overview
The global smokeless tobacco market is highly competitive, with the presence of several regional and global brands. Some of the prominent players in the market include Altria Group, Inc., British American Tobacco Plc, Philip Morris International, Inc., Imperial Brands Plc, and Dholakia Tobacco Pvt. Ltd., among others. As adult tobacco consumer preferences evolve, consumers are increasingly moving across tobacco categories. The willingness of adult tobacco consumers to purchase premium brands. The prime factors determining the market brands and their position in the concerned market are the continuous launch of new products with innovative options and premium quality products. Thus, brands are differentiating their products in terms of design (size), flavor, format, and innovation to gain a competitive advantage.
For instance, in February 2023, General brand launched Harvest’s special blend that had a clean and rustic taste of raw tobacco. It came in two different formats: White Portion and Original Portion. The original portions weigh 1 gram/piece, and the white portions weigh 0.9 grams/piece. Each box contained 24 pills, and the snus had a normal nicotine strength of 2/4 (0.9%).
Smokeless Tobacco Market Leaders
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Altria Group, Inc.
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British American Tobacco Plc
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Philip Morris International, Inc.
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Imperial Brands Plc
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Dholakia Tobacco Pvt. Ltd.
*Disclaimer: Major Players sorted in no particular order
Smokeless Tobacco Market News
- October 2023: Swedish Match Brand General launched two new items, the Negroni White Portion Limited Edition and General Negroni Original Portion Limited Edition. Its tobacco character was light, spicy, and bitter, and both snuffs had a flavor of juniper, cherry, orange, grapefruit, and wormwood. The pills were in a large format and had a normal nicotine content.
- September 2023: Philip Morris International Inc.’s brand launched a limited-edition product, Small Batch No. 34 Chili Cheese, that had a light tobacco character with a taste of cheese and spicy hints of jalapeño and chili. The snus had a normal nicotine content of 0.8%, and the portions were of the large white format. The boxes contained 24 pills weighing 1 g each.
- January 2023: Under its brand Skruf, Imperial Brands Plc launched new snus products in the market. It launched snus products in various formats such as white, portion, stark portion, and blue-white.
Smokeless Tobacco Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.1.1 Aggressive Marketing and Strategic Investments by Key Players
4.1.2 Growing Prevalence of Smokeless Tobacco Supported By Growth in Production of Tobacco
4.2 Market Restraints
4.2.1 Stringent Government Regulations Leading to Ban on Smokeless Tobacco
4.3 Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Product Type
5.1.1 Chewing Tobacco
5.1.2 Moist Snuff
5.1.2.1 US-Style Moist Snuff (Dip)
5.1.2.2 Swedish Style Snus
5.2 Distribution Channel
5.2.1 Convenience/Traditional Grocers
5.2.2 Supermarkets/Hypermarkets
5.2.3 Online Retail Stores
5.2.4 Other Distribution Channels
5.3 Geography
5.3.1 North America
5.3.1.1 United States
5.3.1.2 Canada
5.3.1.3 Rest of North America
5.3.2 Europe
5.3.2.1 Czech Republic
5.3.2.2 Denmark
5.3.2.3 Norway
5.3.2.4 Sweden
5.3.2.5 Rest of Europe
5.3.3 Asia-Pacific
5.3.3.1 India
5.3.3.2 Rest of Asia-Pacific
5.3.4 Rest of World
5.3.4.1 South Africa
5.3.4.2 Algeria
5.3.4.3 Other Countries
6. COMPETITIVE LANDSCAPE
6.1 Strategies Adopted by Leading Players
6.2 Brand Share Analysis
6.3 Company Profiles
6.3.1 Altria Group, Inc.
6.3.2 British American Tobacco Plc
6.3.3 DS Group
6.3.4 Turning Point Brands Inc.
6.3.5 Imperial Brands Plc
6.3.6 Philip Morris International Inc
6.3.7 Dholakia Tobacco Pvt. Ltd.
6.3.8 Japan Tobacco Inc.
6.3.9 Regie Nationale des Tabacs et des Allumettes (RNTA)
6.3.10 Kothari Group Ltd
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. DISCLAIMER
Smokeless Tobacco Industry Segmentation
Smokeless tobacco is a tobacco product that is neither burned nor inhaled but orally consumed through chewing or snusing. The smokeless tobacco market is segmented into product type, distribution channel, and geography. Based on product type, the market is segmented into chewing tobacco and moist snuff. Moist snuff is further bifurcated into US-style moist snuff (dip) and Swedish-style snus. Based on distribution channels, the market is segmented into convenience/traditional grocers, supermarkets/hypermarkets, online retail stores, and other distribution channels. Also, the study provides an analysis of the smokeless tobacco market in emerging and established markets across the globe, including North America, Europe, Asia-Pacific, and the Rest of the World. The market sizing has been done in value terms in USD for all the abovementioned segments.
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| Chewing Tobacco | ||||
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| Convenience/Traditional Grocers | |
| Supermarkets/Hypermarkets | |
| Online Retail Stores | |
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Smokeless Tobacco Market Research Faqs
How big is the Smokeless Tobacco Market?
The Smokeless Tobacco Market size is expected to reach USD 14.61 billion in 2024 and grow at a CAGR of 2.36% to reach USD 16.41 billion by 2029.
What is the current Smokeless Tobacco Market size?
In 2024, the Smokeless Tobacco Market size is expected to reach USD 14.61 billion.
Who are the key players in Smokeless Tobacco Market?
Altria Group, Inc., British American Tobacco Plc, Philip Morris International, Inc., Imperial Brands Plc and Dholakia Tobacco Pvt. Ltd. are the major companies operating in the Smokeless Tobacco Market.
Which is the fastest growing region in Smokeless Tobacco Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Smokeless Tobacco Market?
In 2024, the North America accounts for the largest market share in Smokeless Tobacco Market.
What years does this Smokeless Tobacco Market cover, and what was the market size in 2023?
In 2023, the Smokeless Tobacco Market size was estimated at USD 14.27 billion. The report covers the Smokeless Tobacco Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Smokeless Tobacco Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the emerging trends in Smokeless Tobacco products?
The emerging trends in Smokeless Tobacco products are a) Heated tobacco products b) Flavored varieties c) Nicotine pouch innovations
Smokeless Tobacco Industry Report
The Smokeless Tobacco industry is on the rise, fueled by a shift from traditional smoking to alternative products due to health concerns and a preference for flavored options. This growth is evident in the expanding market for snuff and gutka, with investments pouring in to offer a variety of flavors like cinnamon and apple. The industry, which includes chewing tobacco and moist snuff, benefits from both online and offline sales, with significant growth in North America and Asia Pacific. This is driven by consumer demand for economical and flavored smokeless tobacco products. Key players are focusing on expanding their product range and reaching more customers, despite facing regulatory hurdles. The competitive landscape and market segmentation highlight the industry's dynamic nature and its readiness to innovate and provide safer alternatives to smoking. For detailed insights, Mordor Intelligence™ offers a comprehensive analysis of the Snuff Tobacco market, including size, share, growth rate, and a forecast outlook, available as a free report PDF download.
