Smokeless Tobacco Market Report: 2008 Edition
Snus, as is called in Sweden, is not new to the world, as it dates back to the 1700s or even before. Lately the smokeless tobacco industry has gathered steam, partly due to the smoking bans in various part of the world, as it is more convenient to consume tobacco in smokeless form than through cigarettes. Smokeless tobacco products, snuff or chewing tobacco are consumed almost in every part of the world, however, in different forms, like snus in the Scandinavian countries and snuff in rest of Europe and in the US.
The smokeless category still accounts for a very small share of the tobacco industry, but it is growing as against the declining sales of cigarettes. Apart from the existing players in this market, the tobacco majors are entering this category in a big way, through introduction of their own brands of smokeless tobacco. These tobacco majors are also acquiring the big players of the smokeless category, to gain a greater market share directly, and the size of the tobacco majors also makes their entry through acquisitions possible and a viable option.
Along with the success also come challenges, as the smokeless industry is facing. Tobacco is in any form associated with diseases and health hazards and smokeless is no exception, and so snus is being banned in most part of the European Union. Being a tobacco category, advertisement is always a big challenge. The unique challenge this industry is facing is the use of the products by the age group for whom smoking is banned, children.
The report is an effort towards analyzing smokeless tobacco industry globally as well in its regional markets. The market activities going on in the industry are discussed in the form of the issues, drivers, competition and the consolidation phase. Lastly the major players of the industry are discussed in brief, with their strategies for the market.
The smokeless category still accounts for a very small share of the tobacco industry, but it is growing as against the declining sales of cigarettes. Apart from the existing players in this market, the tobacco majors are entering this category in a big way, through introduction of their own brands of smokeless tobacco. These tobacco majors are also acquiring the big players of the smokeless category, to gain a greater market share directly, and the size of the tobacco majors also makes their entry through acquisitions possible and a viable option.
Along with the success also come challenges, as the smokeless industry is facing. Tobacco is in any form associated with diseases and health hazards and smokeless is no exception, and so snus is being banned in most part of the European Union. Being a tobacco category, advertisement is always a big challenge. The unique challenge this industry is facing is the use of the products by the age group for whom smoking is banned, children.
The report is an effort towards analyzing smokeless tobacco industry globally as well in its regional markets. The market activities going on in the industry are discussed in the form of the issues, drivers, competition and the consolidation phase. Lastly the major players of the industry are discussed in brief, with their strategies for the market.
1. INTRODUCTION
1.1 Product Segments
1.2 Production Process of Snuff
2. SMOKELESS MARKET OVERVIEW
2.1 Snuff
2.2 Chewing Tobacco
3. EUROPEAN MARKET SIZE
3.1 Scandinavian Snus Market
3.1.1 Sweden
Market Growth
Snus User Demographics
Market Share
3.1.2 Norway
Market Overview
Prevalence of Snus
3.2 UK & Rest of European Market
3.2.1 Distribution
3.2.2 Marketplace
4. US MARKET SIZE
4.1 Tobacco Industry & Smokeless Category
4.2 Moist Snuff Tobacco (MST) Market
4.3 Segments of Smokeless Tobacco Industry
Segment Share
Snuff Market Segment-wise Growth
4.4 Players in Smokeless Tobacco Industry
Market Share
5. MARKET DYNAMICS
5.1 Market Issues
5.1.1 High Entry Barriers
5.1.2 Regulatory Issues
5.1.3 Retaining Customers
5.1.4 Linked to Various Types of Health Hazards
5.1.5 EU Ban
5.2 Market Drivers
5.2.1 Smoking Bans Worldwide
5.2.2 Smokeless - Less Harmful and Less Taxing
6. ACQUISITIONS – CIGARETTE COMPANIES TAKING OVER ST PLAYERS
6.1 Acquisition Activities at a Glance
6.2 Tobacco Leaders Taking over Smokeless Majors
7. COMPETITION
7.1 Scandinavian Market
7.2 US Market
7.2.1 Price Competition Between Premium & Value Brands
8. COMPANY PROFILES
8.1 UST
Overview
Business Strategies
Growing Moist Smokeless Tobacco Category
Maintaining an Emphasis on Innovation
Seeking Fair Regulation
8.2 Conwood
Overview
Business Strategies
Portfolio of Profitable Brands
Brand Portfolio Strategy
8.3 Swedish Match
Overview
Business Strategies
Organic Growth
Acquisition & Divestment Strategy
Productivity Enhancement
Financial Strategy
8.4 Swisher
Overview
9. MARKET FORECAST
Snuff Volume Forecast
LIST OF TABLES
Region-wise Usage of Different Smokeless Tobacco Types
Snus users, Age Group 16-84, in Sweden (2007)
Women Snus Users by Age Group
Periodical Changes in Swedish Market Shares (2006-07)
Cigarette/Tobacco Expenditure as % of UK Consumer Expenditure (2003-07)
Retail Distribution of Tobacco Products by Type of Outlet by Value (2007)
MST Players Rank in US Convenience Store Category Captains Awards (2007)
Various Health Hazards of Smokeless Tobacco
Retail Price, Tax Burden and Tax Incidence of a Packet of 20 Cigarettes in the EU27 by Country (US$ and %), July 2008
Merger & Acquisition Activities in Chewing & Smoking Tobacco industry
Competitive Landscape of Swedish Snuff Market (2007)
Swisher’s Smokeless Tobacco Product List
Scandinavian Snuff Volume Forecasts (2008-10e)
Region-wise Usage of Different Smokeless Tobacco Types
Snus users, Age Group 16-84, in Sweden (2007)
Women Snus Users by Age Group
Periodical Changes in Swedish Market Shares (2006-07)
Cigarette/Tobacco Expenditure as % of UK Consumer Expenditure (2003-07)
Retail Distribution of Tobacco Products by Type of Outlet by Value (2007)
MST Players Rank in US Convenience Store Category Captains Awards (2007)
Various Health Hazards of Smokeless Tobacco
Retail Price, Tax Burden and Tax Incidence of a Packet of 20 Cigarettes in the EU27 by Country (US$ and %), July 2008
Merger & Acquisition Activities in Chewing & Smoking Tobacco industry
Competitive Landscape of Swedish Snuff Market (2007)
Swisher’s Smokeless Tobacco Product List
Scandinavian Snuff Volume Forecasts (2008-10e)
LIST OF CHARTS
Production Process of Snuff
North America - Market Share by Volume of Chewing Tobacco (2008)
Smoking Prevalence in Men & Women in Nordic region by Countries (2007)
Growth of Snus Sales in Sweden (1991-2007)
Decline in Cigarettes Sales in Sweden (1991-2007)
Market Share of Players in Swedish Snuff Market (2007)
Volume Market Share in Swedish Snuff Market (2008)
Prevalence of Snus among Males of Different Age Group in Norway (2005-06)
Chewing & Smokeless Segment Share in US Tobacco Industry (2007)
Share of Portion Snuff vs. Loose Snuff in US (2007)
Segment-wise Share of US Moist Snuff Market (2007)
US Snuff Market Segment-wise Growth (1995-2008E)
Volume Share of Major Players of US Snuff Market (2008)
UK Cigarette Industry Volume Growth (2007-08)
Malaysia Tobacco Industry Volume Growth (2000-09E)
Average Retail Prices: Grizzly vs. Skoal/Copenhagen (2006-08)
US Moist Snuff Product Matrix
UST Sales Growth (2003-07)
RAI Sales Growth (2003-07)
Swedish Match Sales Growth (2003-07)
Production Process of Snuff
North America - Market Share by Volume of Chewing Tobacco (2008)
Smoking Prevalence in Men & Women in Nordic region by Countries (2007)
Growth of Snus Sales in Sweden (1991-2007)
Decline in Cigarettes Sales in Sweden (1991-2007)
Market Share of Players in Swedish Snuff Market (2007)
Volume Market Share in Swedish Snuff Market (2008)
Prevalence of Snus among Males of Different Age Group in Norway (2005-06)
Chewing & Smokeless Segment Share in US Tobacco Industry (2007)
Share of Portion Snuff vs. Loose Snuff in US (2007)
Segment-wise Share of US Moist Snuff Market (2007)
US Snuff Market Segment-wise Growth (1995-2008E)
Volume Share of Major Players of US Snuff Market (2008)
UK Cigarette Industry Volume Growth (2007-08)
Malaysia Tobacco Industry Volume Growth (2000-09E)
Average Retail Prices: Grizzly vs. Skoal/Copenhagen (2006-08)
US Moist Snuff Product Matrix
UST Sales Growth (2003-07)
RAI Sales Growth (2003-07)
Swedish Match Sales Growth (2003-07)