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Smokeless Tobacco Market Report: 2008 Edition
Koncept Analytics, Nov 2008, Pages: 46
Snus, as is called in Sweden, is not new to the world, as it dates back to the 1700s or even before. Lately the smokeless tobacco industry has gathered steam, partly due to the smoking bans in various part of the world, as it is more convenient to consume tobacco in smokeless form than through cigarettes. Smokeless tobacco products, snuff or chewing tobacco are consumed almost in every part of the world, however, in different forms, like snus in the Scandinavian countries and snuff in rest of Europe and in the US.
The smokeless category still accounts for a very small share of the tobacco industry, but it is growing as against the declining sales of cigarettes. Apart from the existing players in this market, the tobacco majors are entering this category in a big way, through introduction of their own brands of smokeless tobacco. These tobacco majors are also acquiring the big players of the smokeless category, to gain a greater market share directly, and the size of the tobacco majors also makes their entry through acquisitions possible and a viable option.
Along with the success also come challenges, as the smokeless industry is facing. Tobacco is in any form associated with diseases and health hazards and smokeless is no exception, and so snus is being banned in most part of the European Union. Being a tobacco category, advertisement is always a big challenge. The unique challenge this industry is facing is the use of the products by the age group for whom smoking is banned, children.
The report is an effort towards analyzing smokeless tobacco industry globally as well in its regional markets. The market activities going on in the industry are discussed in the form of the issues, drivers, competition and the consolidation phase. Lastly the major players of the industry are discussed in brief, with their strategies for the market.
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