Chewing Tobacco Market: Business Growth, Development Factors, Application and Fu

Posted by srsuri on May 2nd, 2019

The major players in the chewing tobacco market are British American Tobacco PLC (BAT), Swedish Match, Altria Group Inc, Dharampal Satyapal Group, Reynolds American Inc., Swisher International, Inc. Japan Tobacco, Inc., Imperial Tobacco Group PLC, Reynolds American Inc., and Manikchand Group, among others. These companies are investing extensively in order to diversify their product range and develop new products to increase their market share in the chewing tobacco market.

Chewing tobacco is a particular form of smokeless tobacco consumed by people globally. All modern chewing tobaccos are produced by the process of cutting, fermentation, leaf curing, and processing or sweetening. Chewing tobacco delivers nicotine without combustion.The main types of chewing tobacco are loose leaf, plug, and twist. Loose leaf, a type of chewing tobacco is a dried tobacco, typically sweetened and packaged in foil pouches. The plug is a type of chewing tobacco in which enriched tobacco leaves are pressed together into a cake or plug form and wrapped into a fine tobacco leaf. In twist type of chewing tobacco, dark and dried leaf tobacco is cured with a tobacco leaf extract and twisted into rope-like strands.

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In plug, typically no flavoring agent or sweetener is added. The final product is a bendable, but a dry rope. Most of the brands use licorice as a sweetener and flavoring agent in the chewing tobacco. Although all tobacco products are addictive, chewing tobacco does not involve combustion; so risks associated with smoke inhalation (including respiratory disease and lung cancer) is negligible, and are considered to be less harmful than smoking. However, the risk of chewing tobacco products varies considerably, with some products having significantly lower toxin levels than others.

The main factors driving the growth of the global chewing tobacco market include increase in the expenditure on promotion and marketing by most major players, smoking bans, increasing cigarette price, and targeted marketing.  As cigarette prices continue to soar, smokers are shifting to alternatives such as chewing tobacco. In the past, chewing tobacco was majorly used in rural areas whereas currently there has been increase in its usage by both young and old people living in urban areas. The major restraints affecting the growth of the global chewing tobacco market include illicit trading of tobacco, rising duty on tobacco in Asian countries, and stringency in the tobacco regulatory framework. Governments of various Asian countries are increasing taxes so as to encourage tobacco users to quit, make some reduce their consumption, prevent former users from starting again, and prevent potential new users from taking up the habit.

In the U.S., according to the Comprehensive Smokeless Tobacco Health Education Act of 1986 each individual who packages, manufactures, or imports smokeless tobacco has to submit the amount of nicotine present in each smokeless tobacco product annually to the US Department of Health and Human Services. Some of the major challenges faced by the global chewing tobacco market is due to affordability and easy availability of chewing tobacco is going to boost the overall growth of the global chewing tobacco market during the forecast period. There has been continuous increase in the usage of chewing tobacco especially among teenagers.

The global chewing tobacco market can be categorized on the basis of type and region. In the global chewing tobacco market, the type segment can further be classified into loose leaf, plug, and twist. On the basis of geography, the market is segmented into North America, Europe, Asia Pacific, Middle East & Africa, and South America.

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