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A Study on Global Smokeless Tobacco Market: 2009 Edition
Koncept Analytics, Dec 2009, Pages: 50
Smokeless tobacco products (STP), 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. Globally, Swedish Match and US Smokeless Tobacco Company (USSTC) now acquired by Altria Inc. are the largest market players in smokeless tobacco market.
STP accounts for a very small share of the tobacco industry with Scandinavia and the US are by far the world’s largest markets for snuff and snus. A substantial proportion of smokers have switched from cigarettes to use of smokeless products like snuff and snus. New forms of smokeless tobacco have been launched that contain low level of toxins and nicotine and are less dangerous than smoked tobacco products.
The main drivers of this industry are the declining cigarette sales due to social opposition towards smoking and also a strong health awareness trend. Moreover STPs are less taxed and much cheaper than cigarettes. However, the industry also faces many challenges in terms of retaining its customers as people are becoming more concerned about tobacco related health issues. STP is also associated with cancers of the oesophagus, larynx, and stomach, and an increased risk of heart attacks and other cardiovascular diseases. Moreover increased ban on consumption of tobacco products has reduced the industry’s revenue.
Apart from the existing players in this market, the tobacco majors are entering this category in a big way by introducing their own brands of smokeless tobacco. Additionally, these tobacco majors are also opting for inorganic growth by acquiring the big players of the smokeless category, to gain a greater share of this growing niche segment.
The report focuses on various aspects of smokeless tobacco industry including the market size and geographical segmentation of the market. The report also analyses the key trends, drivers and challenges of the STP market. Further, the report highlights the positioning and strategies of top STP manufacturers –Swedish Match, USSTC/Altria and Reynolds American Inc.
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