In a market globally influenced by reduced smoking rates and a downturn in environmental contamination, snus stands as an exceptional growth story. Snus, a smokeless tobacco product, has gained noteworthy appeal as a practical alternative to traditional cigarettes, encountering heightened demand from consumers across the world due to stringent government rules and regulations regarding conventional smoking. This market report dives deep into the increasing popularity of snus, exploring the factors driving this growth trend and providing valuable insights for prospective investors.
Riding on the wave of easier application and minimal health risks, snus convincingly addresses the need for a nicotine alternative that can be enjoyed anywhere, circumventing the typical restrictions imposed on public cigarette smoking. The report outlines the attraction these advantages have had for nicotine dependents, and consequently, the potential for substantial market growth. Furthermore, the report includes an analysis of snus' increasing appeal among younger generations, exploring the innovative strategies deployed by the snus industry to attract this demographic.
Overall, the report provides a comprehensive projection of the promising growth trajectory of the snus market, offering essential insights for business leaders and market players seeking to leverage these emerging opportunities in the global market.
- Snus is a smokeless tobacco product gaining significant popularity as a convenient alternative to cigarettes. Stringent government rules and regulations regarding smoking and environmental contamination are propelling the demand for snus among consumers across the globe. In major developed countries like the United States, the efforts of governments to reduce smoking by granting permission for the usage of tobacco and nicotine alternatives are further increasing the adoption of snus globally.
- The rising popularity of snus due to the ease of the application it provides to its users is a significant factor driving the market. The ease with which the product can be used anywhere, as compared to cigarettes, which cannot be smoked in public or no-smoking zones due to the negative impacts of combustion, has played an essential role in promoting snus use. The product's low risk of gastrointestinal, lung, and pancreatic cancers and respiratory disorders is a significant reason for its popularity among nicotine addicts. Thus, these factors are expected to support the demand for snus in the global market.
- The COVID-19 pandemic had a negative impact on the global snus market. Smokers are much more vulnerable to the infection because consuming any tobacco or snus product brings fingers into contact with lips, increasing the possibility of virus transmission from hand to mouth. Thus, it indirectly put tobacco users at risk of being affected by COVID-19, restricting the market growth.
Snus Market Trends
Increase in the Adoption of Snus Among the Young Generation
- The rapid rise in snus among today's youth can be attributed to aggressive public awareness campaigns about the negative impacts of smoking and the less harmful effects of consuming snus. The development of snus boxes with new colors, new designs, and flavors such as menthol, licorice, and vanilla that "appeal to young people" by the snus industry led to an increase in snus use among teenagers. Therefore, the development of new flavors such as fruits, eucalyptus, mint, berries, citrus, cedar, bergamot, hay, smoky, dry fruit, spices, hay, and tea will aid in boosting product demand in the coming years.
- One of the main factors in tobacco and cigarette addicts switching to the product is the low incidence of lung, pancreatic, and oral cancers and respiratory illnesses linked to its use. Unlike other kinds of smokeless tobacco, which are fermented during production, snus is made by steam pasteurizing the tobacco. This prevents the development of microbes that produce tobacco-specific nitrosamines, frequently present in other smokeless tobacco products and are known to cause cancer. This factor is expected to boost product demand during the forecast period.
North America Remains the Largest Market
- North America remains the largest growing market for snus. The demand for snus is driven by the fact that it is less harmful than cigarette smoking. The Food and Drug Administration (FDA) of the United States has also authorized the sale of snus products. However, it does not allow the company to claim that it is less harmful than other tobacco products.
- The rise of e-commerce was an industry trend that contributed to the snus market in European countries, owing to the relatively young consumer demographic more accustomed to e-commerce. Online retailers are offering lower prices than traditional retailers, as well as extensive product selection, which further intensifies the growth of the snus market in the European regions.
- Consumers can even buy Swedish snus online, further intensifying the snus market growth across North America. The sale of snus is prohibited across the European Union except in Sweden, thereby registering low market growth across Europe.
Snus Industry OverviewThe snus market is highly competitive, with the strong presence of global and regional players in the market. In the market studied, well-established companies with a known brand attached to their business profile have a higher penetration across retail shelves, primarily because of business expansion and a higher share of consumer preference across both developed and developing markets.
With a huge presence and wide distribution networks, key players such as Swedish Match AB, Imperial Brand, Altria Group Inc., and JT International AG hold prominent shares in the global snus market. Furthermore, tobacco companies have always seen innovation and new product development (NPD) as a way of boosting brand performance, keeping existing customers loyal, and attracting new ones. Owing to this factor, companies worldwide have steadily diversified into alternative tobacco and nicotine products, including smokeless tobacco called Swedish-style snus.
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Table of Contents
1.2 Scope of the Study
4.2 Market Restraints
4.3 Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5.1.1 Loose Snus
5.1.2 Portion Snus
5.2 By Distribution Channel
5.2.1 Tobacco Stores
5.2.2 Convenience Stores
5.2.3 Online Retail Stores
5.2.4 Other Distribution Channels
5.3 By Geography
5.3.1 North America
22.214.171.124 United States
126.96.36.199 Rest of North America
188.8.131.52 United Kingdom
184.108.40.206 Rest of Europe
220.127.116.11 Rest of Asia-Pacific
5.3.4 South America
18.104.22.168 Rest of South America
5.3.5 Middle East & Africa
22.214.171.124 United Arab Emirates
126.96.36.199 South Africa
188.8.131.52 Rest of Middle East & Africa
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 Swedish Match AB
6.3.2 Altria Group Inc.
6.3.3 JT International AG
6.3.4 Imperial Brands
6.3.5 GN Tobacco Sweden AB
6.3.6 British American Tobacco
6.3.7 Dholakia Tobacco Pvt. Ltd
6.3.8 Mac Baren
6.3.9 Kurbits Snus
A selection of companies mentioned in this report includes:
- Swedish Match AB
- Altria Group Inc.
- JT International AG
- Imperial Brands
- GN Tobacco Sweden AB
- British American Tobacco
- Dholakia Tobacco Pvt. Ltd
- Mac Baren
- Kurbits Snus