The Growing Market for Alternative Tobacco Products

Sep.26.2022
The Growing Market for Alternative Tobacco Products
Alternate tobacco products, such as heated tobacco and nicotine pouches, are growing rapidly in the market.

In recent years, the market for alternative tobacco products has been growing and is expected to continue to grow at a significant pace in the coming years. Over the past three years, alternative tobacco products such as heated tobacco and nicotine pouches have accounted for a portion of global retail sales of combustible tobacco, and the combustible cigarette market has dropped by 5% in market share.


Traditional cigarettes still dominate the tobacco product market, but the sustained interest and investment in alternatives means they are expected to continue to take market share from combustible products - as recent results have shown. The Global Nicotine Trends report recently released by the Philip Morris International (PMI)-funded Foundation for a Smoke-Free World found that the shares of e-cigarettes and heated tobacco products were 2.5% and 2.4%, respectively, in 2020. Another market assessment report analyzed by INSIGHT ACE, titled "Global Next-Generation Tobacco Product Market - by trend, industry competition analysis, company profiles, revenue, and 2030 forecast," states that the global market size for new tobacco products was $24.83 billion in 2021, and is expected to reach $67.38 billion by 2030, with a CAGR of 11.8% during the forecast period from 2022 to 2030.


The article argues that nicotine is a crucial active ingredient in tobacco products, and can help individuals quit tobacco addiction. According to the World Health Organization (WHO), over 8 million people die from smoking-related illnesses every year. In order to address this issue, tobacco product manufacturers have been releasing new products to reduce the risk of tobacco-related diseases. For example, in May 2019, Philip Morris announced the launch of IQOS, an electronic device that heats tobacco-filled sticks wrapped in paper to produce nicotine-containing aerosol as a cigarette alternative. The investment in developing promising next-generation tobacco products by key players is expected to drive market growth during the forecast period. Additionally, raising awareness of the health hazards associated with smoking can help encourage tobacco or cigarette addicts to use the next generation of tobacco products.


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