Global Roll-Your-Own-Tobacco Products Market to Grow at a CAGR of 4.6% during 2020 –2030

Introduction

Roll-your-own tobacco consists of tobacco fragments deposited in rolling paper and then burned. "Roll your own" tobacco products are a common term for hand-rolled cigarettes containing dispersed tobacco. It can be smoked with or without filter paper and is of superior quality. Due to the widespread availability of online tools and supplies, making your cigarettes from retail outlets is straightforward and possible. RYO tobacco products appeal due to their adaptability regarding cigarette weight and diameter, packaging density, tobacco content, and filter use. Consumers can mitigate the negative effects of smoking on their health and well-being by selecting premium-grade, synthetic-free tobacco and avoiding the hazardous synthetic substances and toxins in cigarettes.

Market Dynamics

Rising Consumption of Tobacco Products among Females and Students Drives the Global Market

Many consumers of handmade cigarettes believe that RYO tobacco products are safer than FM cigarettes. This trend has also contributed to the expansion of the market. Tobacco products like cigarettes, cigars, and cigarillos are becoming increasingly popular in the United States. For example, according to the Centers for Disease Control and Prevention (CDC), tobacco and related product use among U.S. adolescents has steadily increased. In 2019, approximately 1 in 4 and 1 in 14 secondary school students used tobacco products.

In the United States, females increasingly consume tobacco products and hand-rolled cigarettes. For instance, in 2018, 13.7% (approximately 34,2 million individuals) of the U.S. population smoked cigarettes, according to the CDC. Approximately 12% of the total female population aged 18 and older in the United States smoked cigarettes. This factor is increasing the nation's demand for tobacco and similar products, driving market growth.

Growing Popularity of Premium Products Creates Tremendous Opportunities

Market leaders are offering tobacco products in various sizes, flavors, and attractive packaging. These initiatives by manufacturers drive the global demand for premium tobacco products that can be rolled at home. To sustain market competition, companies operating in the tobacco industry engage in ongoing R&D to produce higher-quality tobacco with novel flavors. In response to the growing popularity of hand-rolled cigarettes in large markets, manufacturers have introduced novel, experientially-rich products. These market trends will create opportunities for roll-your-own tobacco products during the forecast period.

Regional Analysis

Europe is the most significant global roll-your-own-tobacco products market shareholder and is anticipated to exhibit a CAGR of 4.0% during the forecast period. The European tobacco market comprises well-established companies like Gallaher Group, British American Tobacco, and Philip Morris International, as well as several minor and medium-sized companies like Korea Tobacco & Ginseng Corporation, Imperial Brands, and Swedish Match Europe. Some market participants are among the leading tobacco manufacturers with a substantial customer base. In 2018, the WHO reported that the average smoking rate in Europe was 28.7%. In addition, income is one of Europe's most persuasive causes of elevated tobacco consumption. According to a Society for Research on Nicotine and Tobacco study, cigarette smoking is strongly associated with lower income levels. These market trends are anticipated to stimulate the demand for tobacco products that can be rolled.

North America is estimated to exhibit a CAGR of 4.2% over the forecast period. The North American tobacco market is gaining momentum and experiencing high demand due to the rising disposable incomes of consumers, increased product launches, and the availability of superior-quality products. According to the Centers for Disease Control and Prevention (CDC), in 2018, approximately 13.7% of the total U.S. population, or nearly 34.2 million people, smoked cigarettes. In addition, approximately 12% of women aged 18 or older in the U.S. smoked cigarettes. This factor is increasing the country's demand for tobacco and related products. In Canada, roll-your-own tobacco users are more nicotine-dependent, heavy smokers and less likely to cease smoking than factory-made (FM) cigarette smokers. Moreover, consumers with lower incomes were more likely to roll their tobacco than those with higher incomes. The reduced tax rate of roll-your-own tobacco compared to FM cigarettes makes it more affordable for low-income consumers, fueling the market growth.

Key Highlights

• The global roll-your-own-tobacco products market was valued at USD 31.30 billion in 2022. It is estimated to reach USD 49.12 billion by 2031, growing at a CAGR of 4.6% during the forecast period (2023–2031).
• Based on product, the global roll-your-own-tobacco products market is divided into RYO-tobacco, rolling paper and cigarette tubes, injectors, and filter and paper tips. The RYO-tobacco segment is the highest contributor to the market and is estimated to exhibit a CAGR of 3.8% over the forecast period.
• Based on distribution channels, the global roll-your-own-tobacco products market is bifurcated into offline and online distribution channels. The offline segment dominates the global market and is projected to exhibit a CAGR of 3.91% over the forecast period.
• Europe is the most significant global roll-your-own-tobacco products market shareholder and is anticipated to exhibit a CAGR of 4.0% during the forecast period.

Competitive Players

Competitive Players

The key players in the global roll-your-own-tobacco products market are Imperial Brands, British American Tobacco, Altria Group, Inc., Scandinavian Tobacco Group A/S, Philip Morris International, HBI International, Karma Filter Tips, Curved Papers, Inc., Shine Brands, and Japan Tobacco International.

Recent Developments

Market News

• In January 2023, According to trade notices seen by betterRetailing, JTI increased its wholesale and suggested retail prices (RRPs). Nearly all of the manufacturer's tobacco products, including cigars, cigarillos, cigarettes, and roll-your-own (RYO) tobacco, have experienced price increases, according to new price lists sent to retailers by wholesalers.

• In January 2023, JTI updated its Sterling Essential Rolling Tobacco by adding rolling papers, an improved blend, and a container with a zipper. The update is intended to make tobacco more accessible to existing adult users by combining all necessary components into a single pouch.

Segmentation

Global Roll-Your-Own-Tobacco Products Market: Segmentation

By Product

• RYO-Tobacco
• Rolling Paper and Cigarette Tubes
• Injector
• Filter and Paper Tip

By Distribution Channel

• Offline
• Online

By Regions

• North America
• Europe
• Asia-Pacific
• Central and South America
• The Middle East and Africa