The global snus market size was valued at USD 2.41 billion in 2020 and is expected to grow at USD 3.51 billion by 2027 at a compound annual growth rate (CAGR) of 5.5% from 2020 to 2027. The growing popularity of snus owing to the convenience of the application it offers to its consumers is a key factor driving the market. The ease of using the product anywhere unlike cigarettes, which cannot be smoked in public and no smoking zones owing to the harmful effects of combustion, has been playing a crucial role in promoting the usage of snus.
Moreover, it is much more convenient in use as compared to dip tobacco as the by-product is swallowed rather than being spit out. These favorable factors associated with snus products have made it a convenient replacement for tobacco products, such as cigarettes, cigars, and smoke pipes.
Portion led the market and accounted for more than 80% share of the global revenue in 2020. Portions are made by packing tobacco in pouches. They are available in various forms, including original, white, dry white, all white, and others. The original portion is dark in color and is packed in moist surface and it delivers an instant flavor and nicotine release.
The white portions are not moistened during manufacturing and therefore offer less drip, thereby causing low salivation and a longer-lasting nicotine release. The product is expected to witness the fastest growth in the years to come. The portion snus is available in various sizes, including large, slim, super slim, and mini, which weigh less than a gram.
The snus market is segmented on the basis of product and region. On the basis of product the market is segmented into Loose, Portion.
Europe accounted for the largest market, accounting for more than 40% of the global revenue in 2020. Strong popularity of such products among male consumers in Scandinavian countries such as Norway and Sweden is expected to remain a favorable factor for the industry. Furthermore, the increased number of new product launches in aforementioned countries is projected to keep the dominance of the region over the next few years.
Middle East and Africa is expected to expand at the fastest CAGR of 9.3% from 2020 to 2027. The region has the least regulations related to the sale of tobaccos. It is known as makla in Africa. Snus is not banned in any African country. More and more international and national agencies are trying to reduce the number of smokers in the region. These products have been proved to be helpful in getting rid of smoking addiction and therefore these are rapidly adopted in the region. Furthermore, these products are affordable and thus are increasingly preferred among the buyers.
Key companies are: Swedish Match AB; British American Tobacco; Altria Group, Inc.; AG Snus; Burger Söhne Sweden AB; Dacapo Silver AB; Fiedler & Lundgren; GN Tobacco; Gordito Oü; Gotlandssnus; Nordic Snus AB; and Skruf Snus.