Global Snus Market to Create an Absolute Opportunity of US$ 1 Bn as Consumers Seek Smokeless Tobacco Alternatives

The global snus market is anticipated to progress on a positive growth trajectory and generate an absolute opportunity of more than US$ 1 Bn by the end of the forecast period. The market’s growth can be primarily attributed to increasing popularity of smokeless tobacco products and growing consumption of snus as an alternative to conventional cigarettes. Moreover, market players are investing on market campaigns to create awareness regarding the product’s benefit of cigarettes and are introducing new flavors, thereby fuelling the sales.

In addition, the Centers for Disease Control and Prevention (CDC) noted that the consumption of smokeless tobacco has increased in the recent past as the alternatives are less damaging than cigarettes. Backed by these factors, the global snus market is anticipated to witness substantial growth in the years to come.

Rising Consumer Preference for Smokeless Tobacco Variants Ensures Lucrative Opportunities

According to the World Health Organization (WHO), tobacco causes the death of more than 8 Mn people globally every year. While 7 Million of these deaths are due to direct intake of tobacco, 1.2 Mn deaths of non-smokers are a result of exposure to second-hand smoke. Due to these alarming numbers, the awareness regarding smoking has increased and consumers are seeking smokeless tobacco products.

The rising awareness and popularity of smokeless tobacco products have transmuted into a remunerative opportunity for snus market. Moreover, stringent government regulations and rules against smoking and the resultant environmental contamination are also compelling consumers to opt for smokeless products such as snus. Besides, the taxes on cigarettes are also driving the consumers to shift towards smokeless alternatives.

Supportive Government Regulations Bolster Adoption in North America

Although the North American region is in its early stages of development, the region has created an environment for domestic and foreign manufacturers to introduce smokeless alternatives, such as chewing tobacco and snus. On this premise, the region is expected to witness substantial investments in the forthcoming years.

Furthermore, the government of United States been granting permission for using tobacco and nicotine alternatives to reduce smoking, thereby fuelling the adoption of snus in the region. On the back of supportive government coupled with increased efforts by manufacturers, North America is forecasted to grow at a double digit CAGR through the forecast period.

Flavored Snus to Remain the Most Sought-out Product Type

Flavored snus segment, which currently holds the lion’s share in market value, is forecasted to remain the most sought-out product type backed by high popularity. Along similar lines, Asia Pacific is forecasted to become a prominent regional market for snus, with flavors such as ‘paan’ being highly popular among consumers, and the region will continue to bestow lucrative revenue opportunities through the forecast period. Owing to the availability of a wide variety of flavors and high consumption, flavored snus segment is anticipated to grow 1.5 times its current market value by the end of the forecast period.

Competitive Landscape of Global Snus Market

The global snus market is highly consolidated with the top 4 players accounting for more than 70% of overall market value. Some of the prominent players in the global snus market are Sweden Match, Altria, V2 Tobacco, British American Tobacco, Imperial Brands, Gajane, Dharampal Satyapal, Manikchand Group, Gotlandssnus, Arnold Andre, Reynolds American, Swisher, Mahak Group, Fiedler & Lundgren, and Japan Tobacco. Market players are focusing on expanding their product portfolio with a range of flavors and innovative products to ga9in competitive edge over the landscape.

Moreover, market players are investing in mergers and strategic partnerships. On these lines, Altria Group, Inc., an American tobacco producer announced US$ 372 Mn to acquire 80% share in Burger Söhne Holding AG, with an objective to enter the snus market and complement the existing oral tobacco portfolio through nicotine pouches among other products.