Global Menthol Cigarette Market - 2022-2029

Global Menthol Cigarette Market - 2022-2029

Market Overview

The global menthol cigarette market valued USD xx million in 2021 and is forecast to reach USD xx million by 2029, growing at a CAGR of xx% during the forecast period (2022-2029).

Menthol is a chemical combination found naturally in peppermint and other similar plants. Menthol can also be produced in a lab. The chemical compound of menthol makes cigarettes easier to smoke and harder to quit. Menthol can change how the brain registers the senses of taste and pain. In cigarettes, menthol creates a cooling sensation in the throat and airways, making the smokeless difficult and easier to inhale. Menthol is also used in other retail tobacco products, such as e-cigarettes, hookah tobacco, cigars, smokeless tobacco, nicotine pouches, and heated tobacco products.

Market Dynamics:

The increasing popularity of menthol-flavored cigarettes among younger individuals

Menthol-flavored e-cigarettes and other nicotine-containing products are expected to boost the market growth. For instance, among high school students who used flavored e-cigarettes in 2021, nearly 30% used menthol E-cigarettes. With menthol e-cigarette sales on the rise, that menthol in tobacco products most popular with young people is recreating a role in addicting a new generation to nicotine. Moreover, according to Federal Law, tobacco manufacturers cannot market cigarettes with characterizing flavors, except for menthol or tobacco flavored cigarettes. Almost all the cigarettes sold in the United States include some natural or lab-created menthol. However, there is usually more menthol in cigarettes marketed particularly as menthol than in other cigarettes. In 2019-2020, sales of menthol-flavored cigarettes made up 37% of all cigarette sales in the U.S. In addition, regular smokers are steadily slanting towards adopting cigarettes that consist of high levels of menthol. These menthol cigarettes can be attributed to the ability of the product to offer relief for throat irritation caused due to the extreme smoking of regular cigarettes. The pleasant smell that menthol cigarettes derive further contributes to the increasing adoption of this product among women and younger age groups.

However, due to the harmful effects of menthol, market growth is expected to witness a downfall over the upcoming years. The US Food and Drug Administration (FDA) has proposed to ban menthol cigarettes and flavored cigars in the United States. Governments across the globe are increasing taxes on cigarettes and introducing new taxation policies with the ultimate tagline to reduce their consumption. These factors are expected to hinder the market's growth in the forecast period.

Market Segmentation:

The single capsule segment held the highest market revenue share of xx% in the year 2021

Based on capsule type, the single capsule accounted for the largest share of xx% in 2021. Such capsules allow consumers to reduce the effects of menthol by bursting the capsule that is present in the filter of a cigarette. The industry's innovation has given consumers an option for when to burst the capsule for the flavor. The single capsule growth is attributed to the fact that it allows the user to consume cigarettes with flavor or without flavor as per their convenience.

Based on end-user, the male segment is expected to account for the highest revenue share over the upcoming years. The segment is attributed to the rising adoption of menthol cigarette consumption by men in recent years due to the cool, refreshing sensation these products stimulate. As per the American Lung Association in the U.S., 89% of all African American cigarette smokers consume menthol cigarettes.

Geographical Penetration:

Asia Pacific is dominating the global menthol cigarette market in the year 2021

The Asia Pacific accounted for the largest share of xx% in 2021. The region is estimated to witness the fastest growth over the forecast period. Due to rapid innovation in products and increasing disposable income and purchasing power, nullifying the negative impact of taxation, increasing product launches. Reducing tax rates in this region contributes to this market’s growth. Moreover, as per a WHO report, South East Asian Region has more than 45% of males and females aged 15 years or more used the highest rates of tobacco. Further, China is a major revenue contributor to the region owing to the growing production of this product. North America is the fastest growing region in the menthol cigarette market, owing to the growing favor of single and double capsule products. Consumers are more likely to perceive benefits such as smoothness and less harshness than other cigarettes.

Competitive Landscape:

The global menthol cigarette market is highly competitive with several international and local markets. Product diversification, revenue generation, and opportunities amplify the market competition. Altria Group, Inc., British American Tobacco plc, Korea Tobacco & Ginseng Corporation, Commonwealth Brands Inc., Japan Tobacco Inc., China Tobacco, Liggett Group LLC, Lorillard Tobacco Company, Imperial Brands plc, and Philip Morris International Inc. are the leading market players with significant market share. Companies are entering into collaborations, acquisitions, mergers, and licensing to increase market penetration. For instance, in July 2020, Japan Tobacco launched two new menthol tobacco stick products under the Camel brand, Camel Menthol Red and Camel Menthol Yellow. These products will gradually be available at convenience stores and retail tobacco stores. In May 2019, Japan Tobacco launched two new products from the MEVIUS brand, MEVIUS Premium Menthol Option Muscat Green 5 100's Slim and MEVIUS Premium Menthol Option Muscat Green One 100's Slim. It features the powerful taste of 100% natural menthol.

Covid-19 impact:

Negative impact on the global menthol cigarette market

The global menthol cigarette market has declined due to the Covid-19 pandemic, as several leading manufacturing industries were closed. Several countries have restricted production activities during the covid-19 pandemic. In addition, people's fear of COVID-19 and the harmful effects of smoking decreased cigarette sales. Moreover, COVID is an infectious disease that mainly attacks the lungs. Smoking harms lung function, making it harder for the body to fight off coronaviruses and other diseases. Smoking is also a major risk factor for non-communicable diseases like cardiovascular disease, cancer, and respiratory disease. People are at higher risk of developing severe illnesses when affected by COVID-19. These factors are hampering the market growth during the pandemic.

Why Purchase the Report?

Understand the current market scenario and viability of global menthol cigarette market over the forecast period

Visualize the composition of the global menthol cigarette market in terms of capsule type, end-user, and distribution channel to identify major players, growth potential, and market strategies

Identify the key regulations prevailing in the market and understand their impact on the market over the forecast period

Understand the key business factors such as market competition, product pricing, new product developments, and patent filings pertaining in the market

What we offer?

PDF report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study

Excel data sheet with valuable data points of the global menthol cigarette market – Regional and Country level segmentation

Product mapping in excel for the key products of all major market players

Market share analysis covering business revenues ($) and revenue share (%) of key market players

The global menthol cigarette market report would provide an access to approximately 69 market data tables, 61 figures, and 180 pages

Target Audience:

Tobacco Products Manufacturers

E-Cigarettes Manufacturers

Education & Research Institutes

Research Professionals