Key Points
- Despite stagnant cigarette sales in many markets, traditional tobacco suppliers remain optimistic, believing they can outperform weaker competitors and secure a larger share of the market.
- Global nicotine demand shows resilience, supported by population growth and the rise of next-generation products, according to Euromonitor.
- In Asia Pacific, cigarette demand remains stable; regional players like BMJ leverage strong market ties to maintain growth.
- Suppliers are diversifying into emerging categories such as nicotine pouches, roll-your-own tobacco, and heat-not-burn products to offset declining cigarette sales.
- Adapting through innovation and infrastructure upgrades has become essential for suppliers amid shifting consumer preferences and regulatory changes.
2Firsts, September 22,2025, Dortmund, Germany—While the cigarette sales have been stagnating in many markets, suppliers to the traditional tobacco business indicated optimism at InterTabac. Their sentiment was partly based on confidence in their ability to adapt to changing market conditions and partly on the sense that they would be able to weather the challenges better than their competitors, allowing them to claim a larger share of a shrinking pie.
They also pointed out that, at least in the near-term, the market for nicotine products is remarkably stable, due to population growth and the rise of alternative products. As Euromonitor’s Shane MacGuill noted in a presentation during the annual meeting of the International Tobacco Growers Association in Dortmund, the total volume outlook indicates “striking overall nicotine resilience.”
Regional Strength
Liem Khe Fung, innovation center director at Indonesian cigarette paper manufacturer Bukit Muria Jaya (BMJ), said his company was confident about its prospects because it was based in a still-resilient region for the traditional tobacco business. Asia Pacific is to more than half of the world’s smokers and some of its more dynamic cigarette markets. According to Liem, demand for cigarettes remains stable in the region.
While acknowledging that globally tobacco sales are declining, Liem believes that BMJ will survive the downturn. He anticipates that weaker competitors will exit the market first, leaving stronger companies to remain. With close ties to market leaders such as SWM and the Tann Group, BMJ serves a significant share of the global cigarette market.
Regarding next-generation tobacco products, Liem noted that many of these products, such as heat-not-burn consumables, still rely on traditional materials like paper, although the volume of paper used has decreased.
Embracing New Categories
Hans Schijfs, sales manager at Spikker Specials, a supplier of wear and spare parts to the traditional tobacco business based in the Netherlands, said his company had been adapting to the changing tobacco landscape by diversifying into emerging markets like nicotine pouches, roll-your-own tobacco and heat-not-burn products.
This shift in focus, he said, is necessary for long-term survival, as conventional cigarette sales continue to drop. The company is adapting by supplying equipment for these new products, which has become a growth area, compensating for the decline in traditional cigarette sales.
Schijf stressed the need to adapt to the market changes and find new opportunities. Companies that resist change and hold on to old ways will not survive, he said. According to Schijfs, Spikker Specials’ reputation and network has helped it stay competitive even as others in the industry struggle with the transition, leaving room for growth.
Adaptability in a Changing Market
Sven Mertens, commercial manager at Tabaknatie, a specialist in tobacco storage and logistics based in Antwerp, stressed the importance of resilience and flexibility in a rapidly changing market. To stay relevant, he says, the company must digitize, innovate and grow or shrink in line with customer requirements.
This also means staying alert for new opportunities. While population growth has offset declining smoking rates in many markets, resulting in steady demand for tobacco storage and logistics services, Tabaknatie is well aware of the growth in next-generation products. To serve the new categories, the company has invested in safe storage facilities for e-cigarettes, which due to their electronic components require additional certificates.
Cover image is generated by ChatGPT
For more on-the-ground coverage, visit the 2Firsts InterTabac Special Section.
