Market Trends of Smokeless Tobacco Industry
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.
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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.
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