The Global Smokeless Tobacco Market: Segments and Recent Developments

Published: Jan 2023

Tobacco that is chewed, sucked, or sniffed rather than smoked is referred to as "smokeless tobacco." Tobacco has been used since the early 1400s. The tobacco-using population shifted with the passage of time. For instance, at present, teenagers are also consuming tobacco due to the various product options that are available in the market. Smokeless tobacco is one of them. It is suitable for those who do not prefer smoking. Moreover, it is anticipated that the market for smokeless cigarettes will expand as more people realize that e-cigarettes are safer than traditional cigarettes, especially among younger people. In comparison to cigarettes, which are used by 18.9% of teens in the US, e-cigarettes were used by about 39.4% of them by March 2022, according to a report from the US Food and Drug Administration. Besides, growing inclinations toward premium and luxury lifestyles will also affect the market positively. Due to these factors, according to OMR Research, the global smokeless tobacco market is expected to grow at a CAGR of 4.9% during the forecast period (2023–2029).

Segments of the Market

The global smokeless tobacco market is divided on the basis of type and form. On the basis of type, the market is subdivided into chewing tobacco, snuff, dissolvable tobacco, and others. On the basis of form, the market is subdivided into dry and moist.

The chewing tobacco market is divided into three categories, with consumer preferences ranging from low-cost chewing tobacco products to premium tobacco items, with the latter driving market growth. Chewing tobacco’s categories include compressed leaves, twists of braided leaves, and loose leaves (called a plug), which sometimes include flavors. The cheek and the gum are used to chew this type of tobacco. The saliva that builds up in the mouth is either spat out or swallowed. Moreover, finely ground tobacco that is either wet or dry is called snuff. It comes in pouches or tins. It can have a taste. Snuff is placed at the gumline, between the gum and the cheek, or just below the lip. Snuff use is often referred to as "dipping." Dry tobacco (snuff) can also be snorted. Besides, the third type of smokeless tobacco is dissolvable tobacco. To make dissolvable tobacco products, powdered tobacco is pressed into shapes like tablets, sticks, or strips. Some may resemble candy and be sweetened or flavored. The crushed tobacco is chewed or kept in the mouth in order to dissolve it. These don't work the same way as nicotine lozenges, which are meant to help people give up smoking. 

Recent Developments

Altria Group, Inc., British American Tobacco, Turning Point Brands, Imperial Brands PLC, Japan Tobacco Inc., Swedish Match, Scandinavian Group AS, Gallaher Group Plc, Reynolds Tobacco Company, and others are assisting in the market’s growth with various growth and expansion activities such as investments, mergers, collaborations, new product launches, and others. Some of the recent activities in the market include:

In November 2022, Japan Tobacco International (JTI) launched a new heated tobacco (smokeless tobacco) device called the Ploom X. As of this launch, the product is currently available in the Greater London region at select merchants, pop-up stores in Shoreditch, online countrywide at www.ploom.co.uk, and in select online vape stores. The device offers a single heating mode, airflow system modification choices for more consistent vapour delivery and higher vapour volume, longer session lengths of up to 5 minutes, and the ability to utilize more EVO tobacco sticks per charge, with up to 22 sessions possible on a single charge.

In November 2022, Philip Morris International Inc., a multinational tobacco company, announced the worldwide debut of its latest heated tobacco product, BONDS by IQOS, in the Philippines, in an effort to accelerate its aim of delivering its smoke-free future vision.

In October 2022, Imperial Brands, a British multinational tobacco company, launched a new vaping device, Blue 2.0. The new product has ceramic heating pod technology that allows for a smoother vaping experience and also features a magnetic lock feature and a long-lasting battery with 1.9 mL liquid pods. The company also launched six new liquid tobacco flavors, including Polar Menthol, Golden Tobacco, Berry Mix, Fresh Mint, Fresh Mango, and Blueberry Ice.

In October 2022, Altria Group, Inc., a leading global tobacco company, announced a partnership with JT Group, a cigarrete manufacturing company, to expand its heated tobacco products portfolio through a joint venture. With the partnership, the companies are aiming to market and commercialize heated tobacco stick (HTS) products and expand the pipeline of Altria’s wholly owned products in the US.

In July 2022, British American Tobacco plc launched its glo™ hyper X2 in Tokyo, Japan. The product is the latest innovation from  glo™, BAT’s heated tobacco brand. The hyper X2 features advanced induction heating technology integrated into a smaller, lighter unit, a separate boost mode for quicker heating, a battery status LED indication, a protective iris-shaped shutter, and bright new colorways.

In October 2021, United States Smokeless Tobacco Company LLC launched four smokeless tobacco products, including Verve Discs Green Mint, Verve Discs Blue Mint, Verve Chews Green Mint, and Verve Chews Blue Mint.

Conclusion

Smokeless tobacco is gaining popularity among young generations, which is especially helping its market’s growth. Various other factors, such as new low-cost products, a preference for flavored tobacco such as cinnamon, berry, vanilla, saffron, and apple, and others, contribute to a lucrative possibility for the smokeless tobacco business.

The market may face some restraints due to various factors such as government restrictions, rising health concerns, and the diseases that happen due to smokeless tobacco, such as mouth, throat, and pancreas cancer, nicotine addiction, dental diseases, mouth diseases, pregnancy risk, etc. Moreover, controls imposed by local governments on the sale of vaping goods and e-liquids in countries such as the United States and India have hindered industry growth. Furthermore, stringent trading laws have made it hard for retail consumers to import vaping equipment for personal use. However, traditional cigarette regulations, on the other hand, are anticipated to acknowledge e-cigarettes as a healthy alternative to tobacco usage, therefore regulating the technology for safe distribution and use. Furthermore, the vaping industry has created many groups in order to resist anti-vaping policies and to regulate the sector for supervision, which has resulted in the growth of the e-cigarette and vaping markets, driving the smokeless tobacco market’s growth.