Smokeless Tobacco Products Market Size, Share & Trends Analysis Report By Product (Chewing Tobacco, Snuff) By Distribution Channel (Online, Offline) By Region, And Segment Forecasts, 2024 - 2030

Smokeless Tobacco Products Market Trends

The global smokeless tobacco products market size was valued at USD 16.81 billion in 2023 and is projected to grow at a CAGR of 4.8% from 2024 to 2030. This growth is attributed to the increasing consumer awareness of the health risks associated with traditional smoking has led to a shift towards smokeless alternatives perceived as less harmful. In addition, the convenience, appealing flavors, and lower costs of these products attract a diverse consumer base, particularly among younger demographics. The rising production of tobacco also supports market expansion by ensuring a stable supply chain. Furthermore, aggressive marketing strategies and the introduction of innovative product variations play significant roles in this growth trajectory.

Tobacco products are enormously consumed by people of all generations across the world to get instant relief from stress, anxiety, and depression. For decades, it has been seen continuously rising in the future for tobacco and its products. Smokeless tobacco products contain varied composition, preparation, and toxicity, but they all consist of a nicotine alkaloid.

However, it is seen that consumer preferences are shifting toward premium smokeless tobacco products. In contrast, these products are often sold in single-serving packets and are inexpensive, which is expected to drive market growth. The smokeless tobacco industry is actively engaged in the production of a larger number of SLT (Smokeless Tobacco Products) products, which are addictive nicotine-containing products. Further, a similar increment in tobacco consumption is occurring globally, which is directly proportional to an increase in the consumption of smokeless products in the market that is easily available and accessible to people and that too at relatively low prices as compared to smoking tobacco products such as cigarettes, cigars and many more.  

Moreover, smokeless tobacco consumption is more because of the greater social acceptance, curiosity, lifestyle, and cultural influence, which are boosting factors for smokeless tobacco product consumption and production across the world. Some other key drivers that lead to market growth are a rise in the adoption of trendy lifestyles among consumers and an elevated intake of tobacco products and their forms in the market. Growth of the market is also attributed to the low cost of smokeless products as compared to smoked tobacco products.

Product Insights

Snuff dominated the market and accounted for the largest revenue share of 54.9% in 2023. This growth is attributed to an increase in sales due to consumers' adoption of it as a premium segment. In addition, the availability of snuff products in the tobacco market in different flavors such as mint, berry, cinnamon, vanilla, saffron, and apple helps to provide additive opportunities for the smokeless tobacco market. All these aspects contribute to its higher position in the market.

Chewing tobacco products are expected to grow at a CAGR of 5.6% over the forecast years. This growth is driven by increasing consumer preference for convenient and discreet tobacco consumption drives demand, especially among younger demographics. The availability of diverse flavors enhances appeal, attracting a broader audience. In addition, the perception of chewing tobacco as a less harmful alternative to smoking contributes to its popularity. Economic factors, such as affordability and rising disposable incomes, further support market expansion. Furthermore, cultural acceptance and the growing trend of using smokeless products in various regions bolster the consumption of chewing tobacco globally.

Distribution Channel Insights

Offline channels led the market and accounted for the largest revenue share of 84.9% in 2023. The offline sales sector, which is predominantly influenced by consumers who choose to physically examine a variety of products to gauge their quality and content diversity, drives the segment’s growth. In addition, the ability to browse through different types of products in stores and engage in bargaining with retail sectors is expected to drive the offline segment in the coming years. Furthermore, the expansion of tobacco stores, the introduction of the latest products with diverse flavors, and appealing packaging are all key contributors to the growth of offline product sales in the market.

The online distribution channel is expected to grow at a CAGR of 6.2% over the projected years. The channel is majorly accessible to all age groups who prefer to change their preferences and tastes according to the latest launches in products with a variety of flavors. However, offers, deals, and discounts on various items are available online, as is the rising number of online distributors, mainly in developed countries.

Regional Insights

The North America smokeless tobacco products market is expected to grow significantly over the forecasted years. Consumers perceive smokeless tobacco as a lower-risk alternative to smoking, fueling demand, especially among millennials and younger generations in the region, which drives the market’s growth. In addition, aggressive marketing and strategic investments by key players, along with the growing prevalence of smokeless tobacco use supported by increased tobacco production globally, contribute to the market's expansion. Furthermore, evolving consumer habits and a shift towards smokeless tobacco for smoking cessation or substitution further propel the market's growth trajectory in North America.

U.S. Smokeless Tobacco Products Market Trends

The smokeless tobacco products market in the U.S. is expected to dominate the North American market and experience a significant over the forecast years. Two major types of smokeless tobacco have been marketed in the U.S., such as chewing tobacco and snuff, including snus. Furthermore, smokeless tobacco companies in the U.S. create and manufacture products that appeal to kids. In recent years, there has been an onslaught of the latest trendy smokeless tobacco products in the market, which are augmented with aggressive and effective marketing strategies that attract new youth users.

Asia Pacific Smokeless Tobacco Products Market Trends

The Asia Pacific smokeless tobacco products market dominated the global market and accounted for the largest revenue share of 37.5% in 2023. This growth is driven by the increasing demand for cheaper chewing tobacco products in countries such as India, Bangladesh, and Pakistan. Furthermore, the demand for smokeless tobacco products is expected to rise due to the adoption of products by women and the older population in Asian countries. 

The smokeless tobacco products market in India is driven by the ease of availability of gutkha, pan masala, chewing tobacco with lime, betel quid, Pokhara, mawa, mishri, khaini, and other tobacco products that are the multiple forms of smokeless tobacco that are locally made and consumed throughout the country. SLT products offer a great number of unique products available in every state of India. In Assam, Maharashtra, and Uttar Pradesh, the number of unique cigarette packs was greater than smoking packs, and low prices attract youth; hence, the market is expected to be driven by the rising interest of the younger generation in the new epidemic tobacco types with changing lifestyles.

Europe Smokeless Tobacco Products Market Trends

Europe smokeless tobacco products market is expected to grow at a CAGR of 5.3% over the projected years. This growth is attributed to the frequent use of smoothing tobacco in regions of Sweden and Norway, where Swedish snus is legal and hence sold widely and has attained social acceptance. In addition, increasing consumer awareness of the health risks associated with smoking has led many to seek alternatives such as smokeless tobacco. Furthermore, the convenience of use and the availability of flavored options further attract consumers, while lenient regulations in some regions facilitate market growth.

The smokeless tobacco products market in Sweden is expected to grow substantially over the forecast years. This growth is driven by a significant shift away from traditional smoking, particularly cigarettes, which is occurring as consumers increasingly opt for smokeless alternatives such as snus and nicotine pouches, motivated by health concerns. In addition, Sweden's harm reduction policies, which favor lower taxes on smokeless products, further encourage this trend. Furthermore, the rise of e-commerce has made these products more accessible, enhancing their popularity among consumers.

Norway smokeless tobacco products market is expected to witness rapid growth over the projected years owing to increasing restrictions on smoking in public places, which have shifted consumer preference toward smokeless alternatives such as snus. In addition, the cultural acceptance of snus and effective harm-reduction policies support its popularity. Furthermore, the use of smokeless tobacco is more common among men than women. Among men, nearly 21% use smokeless tobacco daily, and among women, approximately 9 % use smokeless tobacco daily. In the younger population, however, the prevalence is higher. Smokeless tobacco has become more common than smoking among youth for a long time.

Key Smokeless Tobacco Products Company Insights

Some of the key companies in the smokeless tobacco products market, Altria Group, Inc., British American Tobacco, Imperial Brands Plc., Universal Corporation Ltd., Reynolds Tobacco Company, and Swedish Match AB, in the market, are focusing on the development & to gain a competitive edge in the industry. Therefore, key players are taking several strategic initiatives.

• Arthrex, Inc. offers surgical products and solutions for arthroscopic and slightly invasive orthopedic surgery. The company also offers related surgical products for hands, knees, shoulders, elbows, feet, and ankles, orthobiologics, imaging, and resection systems.

• Corin Group is a manufacturer of orthopedic systems envisioned to enhance patients' well-being through clinically verified implants associated with technologies and data. The company offers positioning systems, implants, hip and joint replacements, and knee joint fixtures, together with a blend of advanced technologies, allowing surgeons and healthcare professionals to optimize efficiently.

Recent Developments

• In June 2024, Scandinavian Tobacco Group (STG) announced its acquisition of MacBaren Tobacco Co. for around USD 76.9 million (DKK535 million), financed by cash and debt. Founded in 1826, Mac Baren produces popular pipe tobacco and nicotine pouches with significant sales in the U.S., Denmark, and Germany. STG aims to enhance its smoking tobacco portfolio and expects collaborations from the integration, which will take up to 120 days to complete, according to CEO Niels Frederiksen.

• In June 2023, Imperial Brands acquired different types of nicotine pouches from TJP Labs to enter into the current U.S. market. This acquisition was expected to allow ITG Brands to offer 14 product variants to American consumers, with a relaunch planned for 2024.

Smokeless Tobacco Products Market Report Scope

Global Smokeless Tobacco Products Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and analyzes the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global smokeless tobacco products market report based on product, distribution channel, and region.

• Product Outlook (Revenue, USD Million, 2018 - 2030)

  • Chewing Tobacco

  • Snuff

  • Others

• Distribution Channel Outlook (Revenue, USD Million, 2018 - 2030)

  • Online

  • Offline

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • Sweden

    • Norway

  • Asia Pacific

    • India

  • Latin America

  • Middle East and Africa (MEA)

    • Algeria

    • South Africa