Smokeless Tobacco Products Market Analysis Report By Product, By Distribution Channel, By Region And Segment Forecasts From 2019 To 2025

Report ID: MN17619542  |  Published: April 2020  |  No of Pages: 80
Format: Electronic (PDF)  |  Industry: Consumer Goods

Industry Insights

The global smokeless tobacco products market size was accounted for USD 13.6 billion, in 2018 and is anticipated to grow at 7.2% CAGR over the forecast period, 2019 to 2025. Low cost, convenience to use, splendid taste, and low risk of health, when compared to smoking tobacco, are some of the major factors driving the product demand. Smokeless tobacco is available in a wide range of flavors that lure different customers to choose as per their taste preference. Further, the content of nicotine in this product is twice when compared to that of a cigarette, attracting several users who consume high dosages of nicotine, thus increasing the product demand in the market.

The sale of products of dry leaf category has been considerably increasing in developed countries. This factor has persuaded several regional manufacturers to invest in various types of products like gutka, snuff, and other variants of the smokeless type. Philip Morris International Inc., a globally renowned tobacco company, has begun investing in smokeless types owing to its predominance in chewing tobacco variants in the market of southeast Asia.

North America smokeless tobacco products market

Growing inclination towards several flavored smokeless tobacco products like vanilla, saffron, berry, apple, and cinnamon help in providing a profitable opportunity for the smokeless tobacco market. Consumption of various flavors is increasing due to the inclination of customers towards new product variants available in the market. The growing middle-class population is also driving the demand for cost-effective variants like roll, plug type, and twist leaf in the industry. Further, rising disposable income is projected to drive the growth of the market over the forecast period.

The adoption of a vogue lifestyle amongst consumers has influenced the growth of products and forms of tobacco available in the market. The low price of the smokeless product category, when compared to the products of smoked tobacco, is also contributing to driving the market growth. Furthermore, the increasing number of vetoes on cigarettes in several countries, as well as awareness regarding its consumption, is projected to propel the growth in the forecast period. Moreover, there is an increase in the consumption of smokeless tobacco variants like Khaini, Supari, and Gutkha among the women population.

However, the sale of products is projected to rise owing to the increase in space needed for consuming products of smoke tobacco when compared to smokeless products. The product is vended by manufacturers as a substitute for cigarettes in a smoke-free environment. This has risen the sales of the product in regions where smoke tobacco products are banned. Furthermore, this persuades consumers to firmly switch to the smokeless category from the usage of smoke products.

Product Type Insights

The snuff category, in 2018, accounted for the largest share of 56.3%. The product category is projected to rise in sales owing to the consumption of premium products by consumers. Furthermore, the high price of this category leads to a rise in the total revenue generated. Snuff products are available in various flavors like cinnamon, mint, and berry which is projected to propel the growth in the forecast period. The availability of nicotine-free variants is anticipated to drive the sales figure. These products are useful for consumers that are addicted to smoke products. Swedish Match, in the year 2018, took possession of Gotlandssnus AB, a producer of tobacco products, for selling products belonging to the nicotine-free snuff category around Asia, the U.S., Sweden, and parts of Europe.

Chewing tobacco, such as loose-leaf, roll, and plug variants, is the fastest-growing segment, augmenting to 8.1% CAGR over the forecast period. The demand for chewing tobacco variants among consumers is increasing because of their minimal and effective pricing which is projected to drive the smokeless tobacco product market growth. The market growth is also induced by the usage of the product for a longer interval of time than smoke tobacco products, which get over within a few minutes. Furthermore, the availability of several types like loose-leaf, plug, and twist as well as packaging types, is most likely to propel the product demand in the forecast period.

Distribution Channel Insights

The offline distribution channel, in 2018, accounted for the largest share of 86%. The offline sales are boosted by consumers who prefer accessing various types physically for checking their variety of content and quality. Furthermore, looking for various types of products in stores with an option to bargain from the retailers is driving the growth of the offline distribution channel in the forecast period. Easiness in comparing prices of different categories like chewing and snuff products of various brands is viable for its sales in the market. The rise in the number of stores of tobacco, premium products with flavors, and tempting packaging have significantly contributed to the offline selling of products in the market.

Global smokeless tobacco products market

The online distribution channel is the fastest developing channel, growing at 8.6% CAGR in the forecast period. The online sector has witnessed an increase in sales owing to the manufacturers selling a variety of products to the consumers through their online channels of distribution. The online channel of distribution is majorly accessed by the younger age groups who prefer changes in their lifestyle. However, offers, deals, and discounts on various items available online as well as the rising number of online distributors specifically in countries like Canada and the U.S., are driving the market growth of the channel in the forecast period.  

Regional Insights

North America ruled the market with a 37.9% share, in 2018. Increasing demand for snuff products along with their various types like moist and dry is driving the market growth. In the U.S., the moist snuff market went from 1.37 million cans in 2013 to 1.5 million, in 2017 and is projected to grow at 6.1% CAGR in the forecast period. Furthermore, the increase in spending on dissolvable product categories, in the U.S., in form of strips and sticks is projected to boost the market growth regionally in the forecast period.

Asia Pacific is anticipated to be the fastest developing regional market, expanding at 8.7% CAGR in the forecast period owing to increasing sales of the moderately priced chewing categories of smokeless tobacco in countries like India, Pakistan, and Bangladesh. The chewing tobacco market in India is projected to expand at a healthy CAGR over the forecast period. There is a high demand for chewing tobacco products amongst the old age population and women in Pakistan and India. About 19.3% of women in Pakistan and 20% of women in India consume chewing tobacco variants like pan masala and tobacco leaf.

Smokeless Tobacco Products Market Share Insights

There is an increase in demand for cost-effective products in countries like South Africa, Norway, and India because of the growing premium snuff industry. Companies are launching new products and focusing on capacity expansion to increase the value of their products in the market. The market is known for strategic ventures like acquisitions and mergers, limited sales, development, and online sales. Premium and luring packaging of products also contributes towards market growth. The major players in the industry include Imperial Tobacco Group, Universal Corporation, Reynolds Tobacco, Gallaher Group Plc, British American Tobacco, and Altria Group.

Report Scope



The base year for estimation


Actual estimates/Historical data

2015 - 2017

Forecast period

2019 - 2025

Market representation

Revenue in USD Billion & CAGR from 2019 to 2025

Regional scope

North America, Europe, Asia Pacific, Central & South America, Middle East & Africa

Report coverage        

Revenue forecast, company share, competitive landscape, growth factors, and trends

Country Scope

U.S., Canada, Sweden, Norway, India, Algeria, and South Africa

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Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2015 to 2025. For this study, Million Insights has segmented the global Smokeless Tobacco Products market report based on product, distribution channel, and region:

• Product Type Outlook (Revenue, USD Billion, 2015 - 2025)
    • Chewing tobacco
    • Snuff
    • Others

• Distribution Channel Outlook (Revenue, USD Billion, 2015 - 2025)
    • Online
    • Offline

• Regional Outlook (Revenue, USD Billion, 2015 - 2025)
    • North America
        • U.S.
        • Canada
    • Europe
        • Sweden
        • Norway
        • the Asia Pacific
        • India
    • Central & South America
    • Middle East & Africa
        • Algeria
        • South Africa

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