Snus Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

Snus Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

The snus market is projected to register a CAGR of 4.75% during the forecast period.

• 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.

• 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 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.

The 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.

• The market estimate (ME) sheet in Excel format
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