The cigarette market is expected to see minimal organic volume growth in the coming years, but still presents opportunities, as companies can facilitate the transition to reduced-risk products, diversify their offerings, and innovate in relaxation and wellness, due to changes in societal attitudes, and the rise of herbal and functional products.
This report comes in PPT.
The global prevalence of tobacco is steadily decreasing, with these products becoming increasingly less prominent and accepted within mainstream culture. Although cigarettes were once ubiquitous, the industry is now moving towards marginal consumption, resulting in a decline in both consumers and interest.
Despite worldwide economic difficulties, consumers are increasingly split between high-end and budget products. Although the difference in the cigarette market remains, a growing number of affordable choices are emerging in once only premium categories like heated tobacco products (HTP) and e-vapour. The industry must find a way to maintain both value growth and affordability in the future.
Although cigarettes will remain the primary source of nicotine for many, a growing segment of consumers will adopt dual usage and explore various nicotine delivery methods. Consumers will prioritise convenience and less harmful options, while cost and accessibility will remain important considerations.
From generational restrictions to category-specific prohibitions, the industry must contend with regulatory hurdles that reshape the make-up of vital strategic markets worldwide, guide growth prospects in reduced-risk product (RRP) categories, and possibly constrain expansion in certain sectors.
Industry participants and consumers are actively seeking effective alternatives to nicotine, and particularly tobacco, as their next stimulant. This pursuit involves exploring non-tobacco ingredients, herbal smoking products, and the integration of nicotine with cannabis. As a result, we will see a significant surge in experimentation and innovation within the industry.
Passport Tobacco covers the seven major tobacco categories: Cigarettes, Cigars & Cigarillos, Smoking tobacco (made up of Pipe tobacco and RYO tobacco), Smokeless Tobacco (snuff and chewing tobacco), E-Vapour Products (closed and open); Heated Tobacco; and Tobacco Free Oral Nicotine. Smoking paraphernalia such as pipes, rolling papers, lighters or matches, etc., are not included, nor are nicotine replacement therapy (NRT) products, which are part of Euromonitor's Passport Consumer Healthcare database.
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