Smokeless Cigarettes Market

Market Overview

The global smokeless cigarettes market size was valued at USD 24.19 billion in 2021 and is projected to reach USD 93.94 billion by 2030, registering a CAGR of 16.27% from 2022 to 2030.

The rising concern among people of varying ages over the potentially hazardous effects of tobacco-based cigarettes has led to a surge in the demand for substantially less dangerous e-cigarettes and vape goods. This is anticipated to be a driving force behind the expansion of the market. An research that was published in the BMJ Journal in 2019 claims that around 20.8 percent of young people in the United States and 4.5 percent of adults in the United States are current users of electronic cigarettes.

The rising concern among people of varying ages over the potentially hazardous effects of tobacco-based cigarettes has led to a surge in demand for substantially less dangerous e-cigarettes and vape goods. This is anticipated to be a driving force behind the market expansion. Research published in the BMJ Journal in 2019 claims that around 20.8 percent of young people in the United States and 4.5 percent of adults in the United States are current users of electronic cigarettes.

Market Dynamics

Market Drivers

Consumer preference for varied flavoured items

The demand of consumers for a variety of flavoured products gives an opportunity for market participants in the smokeless cigarette industry to make substantial profits. In a similar vein, significant participants in the smokeless cigarette market are likely to make technological breakthroughs in the near future, which is predicted to contribute to the industry's expansion.

In addition, the e-cigarette and vaping markets are expected to boost the smokeless cigarettes market key trends and opportunities during the forecast years covering 2022 to 2030. The vaping industry has established a number of organisations to fight against anti-vaping legislation and to regulate the sector in order to monitor and promote the development of these markets.

Safer Tobacco substitutes

The desire of smokers to stop smoking and the choice of consumers for safer tobacco substitutes are two key factors influencing the growth of the global market. However, a significant factor limiting market growth is the prohibition on e-cigarettes imposed by many countries due to health-related concerns. Market participants always concentrate on creating better technologies and providing better products to increase customer satisfaction. The market for smokeless cigarettes is anticipated to develop due to this aspect throughout the forecast period.

Market Restraints

Regional government restrictions & rigorous trading laws

On the other hand, regional government restrictions on the sale of vaping goods and e-liquids in countries like the United States and India have hampered the growth of the smokeless cigarette market to a certain degree in the recent past. This is especially true in countries like the United States and India.

In a similar vein, stringent trading rules have made it difficult for retail consumers to acquire vaping equipment for recreational purposes. Additionally, these laws have restricted the market potential for smokeless cigarette products in a number of regions across the globe.

It is projected that existing cigarette restrictions, on the other hand, will designate e-cigarettes as a healthier option for tobacco consumption and accelerate the future trends of the smokeless cigarettes business. Therefore, the regulation of technology to ensure the circulation and usage of smokeless cigarette products in a safe manner can be seen as a potential game-changer for the development of the target market.

Market Opportunity

Promoted products by offering free giveaways

Following the pandemic, it is anticipated that COVID-19-based marketing and digital sales methods will promote the expansion of the industry. According to an article that was published in Campaign for Tobacco-Free Kids in May 2020, various e-cigarettes makers and vape shops promoted their products by offering free giveaways such as protective masks and 19 percent off nicotine e-liquids by entering the code COVID-19. This was done in an effort to attract customers. As a result, during the course of the projection period, it is anticipated that the usage of vaping devices will increase, particularly among smokers who smoke for recreational purposes and smokers who are attempting to quit smoking entirely.

Regional Analysis

The market is split by region into North America, Europe, Asia-Pacific, and LAMEA.

According to a survey of the market for smokeless cigarettes conducted in the United States and Canada, North America is expected to rank first in terms of profit share in 2021, with 47.9 percent of the total. This is largely attributable to the online presence of significant businesses selling electronic cigarettes and vaping goods, such as JUUL Labs Inc. It is anticipated that the product will increase in popularity throughout the region as an increasing number of younger people place orders for smokeless cigarettes as a viable alternative to tobacco.

It is anticipated that the size of the smokeless cigarette market in the Asia Pacific region will expand at a compound annual growth rate of 16.2 percent over the course of the period spanning over 2022 to 2030. It is anticipated that the expansion of the market for smokeless cigarettes in the region will be supported by the presence of well-established product producers in China as well as by a rising demographic advantage for retailers.

It is anticipated that the availability for certified electronic cigarettes as a preferable alternative to tobacco smoking from various health organisations such as the National Medical Products Administration or NMPA will drive the market potential for smokeless cigarettes in the region.

Given that the vast majority of smokeless cigarettes and electronic cigarettes are now manufactured and supplied from nations such as China and other Asia Pacific countries, the market for smokeless cigarettes in China promises a great deal of advantageous opportunities for international companies to participate in.

Aside from that, it is anticipated that the market for smokeless cigarettes in Europe will expand significantly throughout the time covered by the prediction. E-cigarettes and vaping, including products sold by companies such as British American Tobacco Plc's Vype and Imperial Brands Plc's Blu, have been deemed by European health authorities to be a preferable alternative to the smoking of tobacco, which is likely to increase the growth of the smokeless cigarettes market in that region.

Segmental Analysis

It is anticipated that the electric segment will continue to maintain its dominant position during the projected period. In 2021, the electric segment generated the most revenue overall. The rise in popularity of trendier lifestyles among customers has contributed to the expansion of the market for smokeless cigarettes and other goods and forms associated to the industry. An story that appeared in KPI6 in July 2021 stated that roughly 64 percent of men are the primary participants in the discourse about electronic cigarettes and vaping. The transition that consumers are making away from nicotine-based products and toward smoke-free cigarettes is another important element that is contributing to the quick rise of e-cigarettes. This shift is predicted to drive the market growth.

With a CAGR of ~16.5% from 2023 to 2031, the nonelectric segment is anticipated to develop faster than other market segments throughout the forecast period. The market for smokeless cigarettes is predicted to be further stimulated by the growing understanding that e-cigarettes are safer than regular cigarettes, particularly among the younger generation. A U.S. Food and Drug Administration article estimates that in March 2022, e-cigarette use will be higher among children in the U.S. than cigarette consumption (18.9% vs. 39.4%).

In 2021, the market was primarily controlled by the offline distribution channel. Consumers are primarily motivated to visit nearby stores such as supermarkets, hypermarkets, convenience stores, and other types of retail establishments because these types of businesses offer the most convenient shopping experiences, with a wide variety of e-cigarette products, forms, and flavours all in one location. In addition, by enabling customers to try out the products in question before making a purchase at one of the aforementioned retailers, businesses in this sector will be better able to accommodate the expansion of the market.

With a significant CAGR from 2023 to 2031, the online category is anticipated to grow the fastest. People are more likely to buy e-cigarettes online because of the advantages of online marketplaces, such as affordable prices, ease of use, and access to a more excellent selection of goods. The market for smokeless cigarettes will be driven by the devices' availability online in areas including North America, Europe, and the Asia Pacific. As an illustration, the e-commerce behemoth Amazon is where Breather Supreme Herbal sells tobacco and nicotine-free cigarettes in nations like the U.S. and India.

Recent Developments

• In November 2022, Charlotte's Web, a top U.S. manufacturer of hemp extracts wellness products, received investment from BAT.
• In September 2022, BAT urged cooperation to speed up cigarette harm reduction.
• In December 2022, J.T. will be a part of the Dow Jones Sustainability Asia Pacific Index for the ninth year in a row.