Smokeless tobacco products are soaring in popularity as convenient alternatives to cigarettes. Stringent government rules and regulations with regard to smoking and environmental contamination has given an upswing to demand for smokeless products such as snus among end users.
This trend has been further given impetus by the imposition of taxes on cigarettes globally. Snus market is expected to garner significant traction and is set to generate an absolute $ opportunity of more than US$ 1 Bn during the forecast period.North America snus market is still in its nascent stages of development. Conducive market environment has been created for domestic as well as foreign manufacturers introducing smoking alternatives like snus and chewing tobacco. As a result, investments in United States have intensified and are expected to increase during forecast period.
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Snus Market: Key Findings
- Flavored snus will account for more than 60% of the global market share, displaying a strong rate of growth.
- Portion snus remains a key contributor, with 1.6X growth projected through 2029.
- Specialty stores will account for major market share, while online retail will display a strong growth rate.
- North America will remain a leading market through 2029, accounting for a fourth of the market share.
Competitive Landscape:
Snus market is consolidated with 4 companies holding more than 70% share in the global market. Competition in snus market is high with companies trying to gain an edge over others through rapid developments. Companies like Swedish Match AB have maintained their hold in the market with acquisitions to optimize their portfolio and increase investments in United States. Other companies like Altria Group, Inc. have also entered the snus market through acquisitions. Investments of snus manufacturers are expected to intensify in North America.
- In 2019, Altria Group, Inc. announced a payment of $372 million in order to acquire 80% share in Burger Söhne Holding AG. This acquisition was aimed to enter snus market and complement the existing oral tobacco portfolio through nicotine pouches among other products.
- In 2019, Swedish Match AB got an approval from Food and Drug Administration (FDA) for labeling general snus as a safe alternative for smoking. Swedish Match is the only company working in United States to receive this approval.
- In 2018, Swedish Match acquired Gotlands Snus AB. The acquisition was aimed to enhance the snus product portfolio and increase share in the domestic market.
Snus Market: Key Driving Factors
- Demand for smokeless tobacco products as an alternative to conventional cigarettes is pushing demand for snus, which supports the rise of market.
- Strict government rules on the environmental effects of smoking are key drivers of market growth.
- High taxation rates imposed on conventional cigarettes is fuelling global demand.
- Easy availability of flavored snus products would generate demand among new users.
Snus Market: Key Restraints
- Potential Snus consumption is harmful to health and can result in cancer and death, which is a key challenge for manufacturers.
- Differences in the production standards of snus in different countries impacts market profitability.
Global Snus Market: Segmentation
Segmentation table of the global snus market has been provided below on the basis of product type, flavor, packaging, sales channel, and region.
· By Product Type :
- Portion Snus
- Regular
- White regular
- Strong
- Loose Snus
- Regular
- Strong and extra strong
- Others
· By Flavor :
- Standard
- Flavored
- Fruit
- Herbal
- Mint
- Other Flavors
· By Packaging :
- Films and Wraps
- Cans
- Pouches
- Others
· By Sales Channel :
- Specialty Stores
- Online Retail
- Modern Trade
- Others
· By Region :
- North America
- Latin America
- Europe
- Asia-Pacific
- Middle-East and Africa
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Questionnaire answered in the Market outlook Report of Snus include:
- What is the key strategy deployed by large players to maximize Snus growth?
- What are the main challenges faced by players in the Snus Demand?
- With the advent of technological advancement, how will the Snus landscape change over the forecast period?
- What does player bring to the table which is unique as a strategy, and is easy to emulate for new investors in the Snus size?
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