Global Snus Market Size, Share and Growth Analysis Report - Forecast Trends and Outlook (2024-2032)

Snus Market Analysis

Snus is a damp powder smokeless tobacco product that originated in early 18th-century Sweden as a form of dry snuff. Sublabial administration involves placing it inside the lip (between the lip and the gums) for a prolonged period. Snus, or smokeless tobacco, can be found in areas where other tobacco products are prohibited, and it is medically recognised as being less dangerous than smoking. Snus is composed of finely ground tobacco, which is mixed with water, salt, and a variety of flavourings. It comes in two primary forms: loose and portioned. Loose snus is a moist powder that can be formed into a small clump, or "prilla," by the user, while portioned snus comes pre-packaged in small, teabag-like pouches. Snus has been particularly popular in Scandinavian countries, especially Sweden and Norway. Its use has also spread to other regions, but its availability and legality vary across countries.

The snus demand is influenced by various trends, including the introduction of flavoured varieties and an increase in marketing efforts to attract people looking for alternatives to smoking. The market dynamics are also influenced by factors such as consumer preferences, regulatory changes, and health awareness.

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Snus Market Trends

Growing Popularity of Flavoured Snus

The market, comprising the sale and distribution of a moist, smokeless tobacco product, has various dynamics and trends shaping its landscape. A crucial trend of snus market is that there is an increasing interest towards flavoured snus products, with manufacturers introducing a variety of flavours to attract new customers. Additionally, there is a growing awareness among consumers of snus as an alternative to traditional tobacco products.

Mint, eucalyptus, berries, fruits, liquorice, bourbon, cinnamon, bergamot, cedar, citrus, dried fruit, hay, leather, smoky, tea, and tobacco are among the flavours that have become increasingly common. Moreover, Brands such as ZYN and Skruf have capitalised on the growing trend of health-conscious consumers who are looking for alternatives to traditional tobacco products by offering flavoured nicotine pouches. These innovative products serve as tobacco-free substitutes for traditional snus, appealing to consumers who want the experience of nicotine without the harmful effects associated with tobacco.

The Simplicity of Snus

As per the snus industry analysis, a major factor driving the product demand is the increasing success of snus due to the simplicity of application it provides to its users. The market demand is being driven by the convenience with which it can be used everywhere, unlike cigarettes, which cannot be smoked in public or in ‘no smoking’ zones. The product's low risk of gastrointestinal, lung, and pancreatic cancers as well as respiratory disorders is a significant reason for its popularity among nicotine addicts as it offers a healthier alternative to these consumers. Swedish Match, a leading producer of snus, emphasised that the lack of smoke, odour, and lighting requirement makes snus a preferrable option in places where smoking is not allowed. This versatility plays a crucial role in the rising sales of snus, especially in countries like Sweden and the United States, where smoking regulations are strict.

Industry News

May 2024

As per a study conducted by Loughborough University, commissioned by the Professional Footballers' Association (PFA), one in five male professional players admitted that they use snus.

November 2023

In the United States, Swedish Match has filed a request to renew the Modified Risk Tobacco Product (MRTP) designation for its General Snus products. This classification allows the company to market snus as a less harmful alternative to traditional smoking.

Opportunities in Snus Market

A commodity that has been gaining a lot of traction is tobacco-free snus which contributes to the growth of the snus industry. To hold the commodity relevant in a world market where tobacco use is steadily declining, manufacturers have been developing tobacco-free alternatives to maintain their position in the market and earn a steady revenue. In addition, the increased number of new product releases by key players over the years is expected to keep demand healthy in the forecast period. For instance, Swedish Match has been expanding its ZYN nicotine pouch line, which contains no tobacco but offers nicotine in various strengths, including lower nicotine options.

Development of low-nicotine and nicotine-free snus products targeting health-conscious consumers also fuels the demand of market. For instance, Finland has relaxed its regulations to allow the sale of nicotine pouches in regular retail stores, a practice that was previously restricted. Rising acceptance and legalisation of snus in various regions driving market growth. With global tobacco use on the decline, manufacturers are positioning snus as a healthier alternative. Sweden serves as a prime example of how snus has helped reduce smoking rates, leading to one of the lowest smoking prevalence rates in Europe.

Snus Market Restraints

Regulatory challenges and threat from substitutes may weaken the global market. For instance, the sale of snus is prohibited in all European Union member states, with the exception of Sweden, according to EU tobacco regulations. This prohibition has constrained the growth of the market across Europe.

Stringent regulatory frameworks and restrictions on the marketing and sale of snus in certain regions. The EU Tobacco Products Directive (2014/40/EU) places limitations on the marketing and sale of snus in member states, greatly reducing its market potential throughout Europe.

Health concerns and negative public perception associated with tobacco products impacting market growth. For example, The WHO Framework Convention on Tobacco Control (FCTC) establishes guidelines aimed at reducing the demand for all forms of tobacco products, which contains smokeless tobacco such as snus, thereby emphasising the public health issues associated with its consumption.

Dependence on raw materials subject to price volatility affecting production costs impacts snus demand forecast. In regions like Africa and South America, which play a significant role in the global tobacco supply, varying agricultural conditions often lead to volatile pricing, affecting the production costs of snus. Intense competition from other tobacco and nicotine replacement products. Snus faces intense competition from a range of nicotine replacement products, including nicotine pouches (like ZYN), e-cigarettes, and heat-not-burn devices (such as IQOS).

Market Dynamics

Technological advancements in production processes enhancing the quality and variety of snus products. Leading snus producers, including Swedish Match, are improving their manufacturing processes by integrating automated systems and precision fermentation techniques to achieve enhanced consistency and flavour accuracy.

Digital expansion, and sustainable innovations are offering snus market opportunities in the global market. For instance, there is a rise in the expansion of e-commerce and digital marketing channels enhancing product reach and consumer engagement.  Companies such as GN Tobacco and Swedish Match are expanding their online presence to cater to the growing number of consumers who prefer to buy snus online. Online platforms like HAYPP Group have seen a significant increase in engagement and sales, due to targeted digital marketing strategies and social media campaigns.

Growing focus on sustainable and eco-friendly packaging solutions appealing to environmentally conscious consumers. Moreover, brands such as Skruf are adopting biodegradable packaging in response to consumer demand for more sustainable options. These initiatives not only reduce the environmental impact of snus packaging but also align with the values of eco-conscious consumers, fostering brand loyalty and contributing to market growth.

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Snus Industry Segmentation

“Snus Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

The market is bifurcated based on product type into:

• Loose Snus
• Portion Snus

On the basis of distribution channel, the snus market is segmented as:

• Tobacco Stores
• Convenience Stores
• Online
• Others

The regional markets for snus as analysed in the report are:

• Americas 
  • USA
  • Canada
  • Others
• Europe 
  • Sweden
  • Norway
  • Finland
  • Others
• Rest of the World 
  • Bangladesh
  • South Africa
  • Others

Snus Market Share

By Product Type Insights

The demand for portion snus in the market is influenced by various factors, reflecting consumer preferences and market dynamics. Portion snus, which comes in pre-packed small pouches, offers convenience and ease of use compared to lose snus and is expected to witness a CAGR of 4.9% between 2024 and 2032 which can boost the snus demand growth. Portion snus is often preferred for its convenience. The pre-packed pouches make it easy to use, with no need for users to measure or handle the tobacco directly. This reduces messiness and makes it more discreet to use, especially in public settings.

Each portion snus pouch contains a measured amount of snus, offering users a consistent and controlled dosage of tobacco and nicotine. This consistency appeals to users who prefer knowing the exact amount of product they are consuming.

By Distribution Channel Insights

The tobacco store and online channel segments are significant distribution channels in the snus market, each playing a unique role in the accessibility and availability of snus products to consumers. Tobacco stores provide physical locations where consumers can purchase snus. This allows for direct interaction with the product before purchase, which can be important for new users or those who prefer to physically inspect products, aiding the snus market value. These stores often offer a wide range of tobacco products, including various brands and types of snus. The staff in tobacco stores can also provide valuable guidance and information, enhancing the consumer's buying experience.

Online channels are expected to witness a CAGR of 7.3% in the forecast period owing to the convenience of shopping from anywhere, which is particularly appealing to consumers in areas where snus is less available in physical stores. E-commerce platforms often have a broader selection of snus products, including international brands that may not be available in local tobacco stores.

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Snus Market Regional Analysis

Americas Snus Market Overview

North America, particularly the United States, holds a significant snus market share. Canada is also expected to grow at a CAGR of 5.4% in the forecast period. The United States represents a significant market for snus within the Americas, where this smokeless tobacco product has become increasingly popular, often regarded as a less harmful alternative to smoking. 

A prominent company in this regional market, Swedish Match, experienced significant growth following the US Food and Drug Administration's designation of its General Snus products as Modified Risk Tobacco Products (MRTP) in 2019. The FDA's approval of some snus products as Modified Risk Tobacco Products has also played a role in the growth of the market.

Europe Snus Market Trends

The European market, especially countries like Sweden and Germany, also plays a crucial role, with Sweden having a higher usage volume of snus than cigarettes. Sweden is expected to grow at a CAGR of 4.6% between 2024 and 2032 and contribute to the snus market revenue. During the historical period, Europe remained the major region in the global market. Further, the market is projected to benefit from the strong popularity of such goods among male consumers in Scandinavian countries such as Norway and Sweden.

The market in Europe is placing greater importance on sustainability. Companies like Swedish Match and Skruf are readily adopting eco-friendly packaging options for their products in response to the growing consumer demand for sustainable alternatives. The adoption of biodegradable materials and recyclable packaging is becoming standard among manufacturers of snus and nicotine pouches.

Snus Market Drivers in Rest of the World

The Middle East and Africa is anticipated to witness a healthy growth in the market share as tobacco sales are governed by the fewest laws in the country. South Africa is expected to witness a CAGR of 5.1% in the forecast period and boost the snus industry revenue. These drugs have been shown to aid in the cessation of smoking addiction, and as a result, they are gaining popularity across various countries in the region. Furthermore, due to its cost-effectiveness, snus is becoming increasingly popular among consumers.

Some countries, particularly in South Asia like India and Bangladesh, have a long-standing tradition of using smokeless tobacco. However, products like snus and nicotine pouches are slowly becoming more popular as consumer preferences change.

Innovative Snus Startups

Many startups are focusing on developing tobacco-free nicotine pouches, which are becoming increasingly popular as more people recognise the health risks associated with traditional tobacco products which can boost the demand of snus market. These pouches provide nicotine without tobacco, appealing to health-conscious consumers. Furthermore, some startups are joining the sustainability trend by developing organic or eco-friendly snus products. These companies have developed a niche in the market by providing alternatives to organic snus in response to the consumer demand for ethically sourced and environmentally sustainable choices.

77 Pouches

77 Pouches is an emerging brand in the nicotine pouch sector, focusing on tobacco-free nicotine products. As per the snus market dynamics and trends, the company is known for offering alternative to traditional snus by providing a variety of nicotine pouches in different flavours and strengths. 77 Pouches aims to expand its market reach beyond Scandinavia, where snus is popular, and is targeting new regions such as the United States and Europe.

HAYPP Group

HAYPP Group is another emerging startup in the nicotine pouch market, operating as an online retailer and distributor of both snus and nicotine pouches. The company aims to offer a broad range of tobacco-free nicotine products to consumers in Europe and the United States. By adopting a direct-to-consumer model, HAYPP has successfully capitalised on the growing demand for nicotine alternatives.

Competitive Landscape

The report gives a detailed analysis of the following key players in the global snus market, covering their competitive landscape, capacity, and latest developments like mergers, acquisitions, and investments, expansions of capacity, and plant turnarounds. Several market players are focused on the expansion of snus product offerings with innovative flavours and nicotine strengths appealing to diverse consumer preferences. Some companies are also focused on advanced production and diverse product offerings.

Key Industry Players

Swedish Match AB

Swedish Match AB is a well-known Swedish company known for its production of snus, a smokeless tobacco product, as well as chewing tobacco, cigars, and lighters. Founded in 1915, the company has a rich history and has become a key player in the smokeless tobacco sector.

Altria Group, Inc.

Altria Group is a major American company in snus market and one of the largest producers of tobacco products. It is best known as the parent company of Philip Morris USA, famous for its Marlboro cigarette brand.

GN Tobacco Sweden AB

GN Tobacco Sweden AB is a Swedish company that specialises in the production of chewing tobacco and snus. The company has established a niche in the market with its popular Oden's brand, which offers a wide range of snus products.

Other major players in the market are JT International AG and BAT Group, among others.

The comprehensive EMR report provides an in-depth assessment of the market based on the Porter's five forces model along with giving a SWOT analysis.

Recent Developments

October 2023

The Swedish government has announced plans to reduce the tax on snus while increasing taxes on cigarettes. This move is seen as a public health strategy aimed at encouraging smokers to switch to snus and boost the growth of the snus industry.

April 2023

Stingfree, a modern oral nicotine pouch, has been launched in the Swedish market. This technology can reduce the gum irritation commonly associated with traditional snus and nicotine pouches.

Key Indicators of Prices in Snus Market

• Raw Material Costs: Price fluctuations arise from shifts in global supply and demand, affecting the cost of essential materials for snus production.
• R&D Expenses: Investment in research and development impacts the pricing of new and innovative snus products, reflecting the cost of innovation and affecting snus market expansion. 
• Transportation Costs: Variability in logistics and fuel prices directly affects the overall cost structure and pricing of snus products.
• Trade Policies: Tariffs, trade agreements, and import/export regulations can increase costs, influencing the pricing in international snus markets. 
• Taxes and Subsidies: Government-imposed taxes or subsidies significantly alter the retail price of snus, affecting consumer affordability.

Key Indicators of Demand in Snus Market

• Consumer Preferences: Growing health concerns are leading consumers to prefer smokeless tobacco, increasing demand for snus over traditional cigarettes.
• Growth in Number of Users: The introduction of innovative products and targeted marketing strategies are driving an increase in the number of snus users.
• Distribution Channels: The expansion of retail outlets and online platforms makes snus more accessible, broadening its consumer base and enhancing snus market development.
• Health Awareness: Increased awareness of snus as a potentially reduced-harm alternative to smoking is boosting its appeal among health-conscious users. 
• Seasonal Variations: Consumption of snus can rise during certain seasons or cultural events, influenced by social and cultural factors.
• Economic Factors: Economic growth leads to higher consumer confidence and increased spending on premium snus products, driving demand.