Advantages and Market Prospects of Smokeless Tobacco Products

Smokeless tobacco products, as an important supplement to tobacco consumption, have gained increasing attention from international tobacco manufacturers due to their promising market prospects. One such product is the oral tobacco, originated in Northern Europe and manufactured using a heat treatment process. With the growing awareness of health among individuals, oral tobacco is experiencing a favorable market situation.

一、Advantages of Smokeless Tobacco Products

Portability and usability in smoke-free areas，The compact design of smokeless tobacco products makes them easy to carry and use. Due to the absence of combustion, these products can be used in smoke-free areas.

Recent developments in Sweden，In recent news, several public health experts in Sweden announced that the smoking rate in the country has reduced to 5.6%, approaching a smoke-free status. Additionally, the World Health Organization confirmed that Sweden has a 41% lower cancer incidence rate compared to other EU member states. Sweden also has the lowest lung cancer incidence and male smoking-related mortality rates in Europe. One of the key measures taken by the Swedish Public Health Agency is the conscious promotion of reduced-harm products, with oral tobacco being one of the important new tobacco alternatives. If countries worldwide adopt similar tobacco control measures as Sweden, it could save millions of lives.

Reduced harm compared to traditional cigarettes

Traditional cigarettes, during combustion, produce smoke containing over 6,000 chemicals, with most being byproducts of incomplete tobacco combustion. Approximately 100 of these chemicals are classified as causes or potential causes of smoking-related diseases such as lung cancer, cardiovascular diseases, and chronic obstructive pulmonary disease.

In comparison, oral tobacco significantly reduces the harm to the lungs because it does not require combustion, thus avoiding the generation of tar and smoke. Moreover, it does not expose bystanders to second-hand smoke. Numerous research reports indicate thatSmokeless tobacco products, as an important supplement to tobacco consumption, are gaining increasing attention from international tobacco manufacturers due to their promising market prospects. Oral tobacco, originating from Northern Europe and manufactured using a heat treatment process, is a type of smokeless tobacco product. Currently, with the growing trend of health consciousness among individuals, oral tobacco is experiencing a favorable market situation.

二、Market Prospects of Smokeless Tobacco Products

Europe is the largest modern smokeless tobacco market globally, accounting for a staggering 66% of the global market share of this product. It is followed by North America and the Asia-Pacific region.

Currently, the modern smokeless tobacco market is experiencing rapid competition. Research and Markets, a market analysis report provider, noted that major tobacco companies introduced 27 new modern smokeless tobacco brands in 2020.

Now, not only large tobacco companies but also some smaller ones have entered this product category. To meet the growing market demand, many companies have had to expand their production capacity. For instance, British American Tobacco constructed a new factory in Hungary in September 2020 dedicated to the production of modern smokeless tobacco products.

By the end of 2022, the world’s largest tobacco company, Philip Morris International, is in the process of acquiring Swedish Match for approximately 16 billion USD to advance its future plans of transitioning from combustible tobacco to revenue dominance by smokeless tobacco.

According to a reputable international research firm, the market size of modern smokeless tobacco products is expected to grow from 2.38 billion USD (with 1 USD approximately equal to 6.39 CNY) in 2020 to 32.77 billion USD by 2026. A survey by Precision Reports indicates that the modern smokeless tobacco products produced by the top five tobacco manufacturers collectively account for 77% of the global modern smokeless tobacco market.

The United States and Sweden are currently the major markets for smokeless tobacco. Swedish Match is the largest smokeless tobacco company in the world, with the global market size of nicotine pouches reaching 1.98 billion USD in 2022. It is projected to exceed 22 billion USD by 2030, with a compound annual growth rate of over 30% between 2022 and 2030.