Global Smokeless Tobacco Market Trends, Forecast Report 2025-2037
Smokeless Tobacco Market size was valued at USD 22.9 billion in 2024 and is anticipated to exceed USD 36.3 billion by the end of 2037, registering over 4.7% CAGR during the forecast period i.e., between 2025-2037. In 2025, the industry size of smokeless tobacco is assessed at USD 23.8 billion.
The market is unfolding remarkable growth opportunities fueled by the ever-increasing interest of consumers for an alternative to combustible cigarettes, regulatory controls, and product innovations in nicotine pouches and snus. In this regard, in 2023, the Centers for Disease Control and Prevention declared that nearly 9.3 million adults in the U.S. are utilizing smokeless tobacco products, which are highly used in rural and male demographics. Besides, the supply chain of smokeless tobacco involves three crucial steps: first being cultivation, which is highly executed in India, the U.S., and Brazil, processing, and distribution.
Furthermore, global trade is impacted by significant import-export actions. In this context, in 2023, the Ministry of Commerce and Industry states that products from smokeless tobacco are mainly exported from India, Sweden, and the U.S., with India leading with 65% supply of chewing tobacco. Besides, in 2024, Eurostat notified that the EU imports USD 1.2 billion worth of snus, followed by the U.S. largest importer of finished smokeless products, with 1.2 billion annually, both countries primarily from Sweden. Investment activities in Research, Development, and Deployment focus on harm reduction, with the U.S. FDA allocating USD 130 million for tobacco product testing and modified-risk tobacco applications, thus denoting a positive outlook.
Smokeless Tobacco Sector: Growth Drivers and Challenges
Growth Drivers
- Increasing consumer base: One of the primary drivers for smokeless tobacco is its increasing consumer base. In this regard, in 2025, it is reported that in Germany, approximately 3.3 million people use smokeless tobacco products, which is a substantial 16% increase from 2018. Besides the CDC report, rural areas demonstrated a 2x higher usage. Furthermore, a 2024 WHO report states that in Sweden, 22% of adult snus usage reflects cultural acceptance; similarly, in the case of Japan, the nicotine pouch demand increased at a 9.4% CAGR. Thus, this large consumer base is evidence of a wider market expansion by 2037.
- Research and development activities: Another exceptional driver for the smokeless tobacco market is the growing investments in this sector, aiming to reduce the side effects posed. In this regard, in 2024, the U.S. FDA allocated USD 125 million for tobacco research with a focus on lowered risk. Besides, the global organization Philip Morris assigned a significant amount towards risk reduction. This global shift towards enhanced safety, which a 2023 NIH report suggested that nicotine pouches reduce carcinogens by 90%, is fueling the usage of smokeless tobacco across the world.
Manufacturer Strategies Driving Market Expansion
Key players involved in the manufacturing of smokeless tobacco are undertaking several developmental tactics to strengthen their position in the global market landscape. Key trends opted by manufacturers include Innovative product launches and geographic expansions to establish their footprint in the emerging nations. In this regard, in 2024, the U.S. FDA declared that Swedish Match gained Modified Risk Tobacco Product (MRTP) designation for its snus products, which increased its revenue by USD 322 million, reflecting an expanded demand for low-risk tobacco products.
Revenue Growth Opportunities for Smokeless Tobacco Manufacturers:
|
Company |
Strategy |
Revenue Impact (2023-2024) |
Market Share Change |
|
Swedish Match |
MRTP-approved snus expansion |
+$322 million |
+5.4% (U.S.) |
|
Altria |
Nicotine pouch R&D investment |
+$295 million |
+14% (U.S.) |
|
British American Tobacco |
India chewing tobacco partnerships |
+$190 million |
+9% (Asia) |
|
Philip Morris |
Smoke-free oral nicotine products |
+$420 million |
+8% (Global) |
Feasible Expansion Models Shaping the Future Smokeless Tobacco Market
The global market is growing exponentially, influenced by several revenue-making strategies shaping the market expansion. Firms leveraging smokeless tobacco are undertaking different approaches such as collaborations, domestic production, and support from regulatory frameworks, aiming to expand in key markets. For instance, in 2024, MoHFW India declared that in India, suppliers partnered with domestic healthcare providers to promote harm reduction, which increased their revenue by 14% from 2022 to 2024. Hence, these expansion models will significantly shape the market expansion and showcase lucrative growth opportunities during the forecast timeline.
Revenue Feasibility Models for Market Expansion
|
Model |
Region |
Revenue Impact |
Key Statistic |
|
Healthcare Partnerships |
India |
+14% (2022 to 2024) |
9 million new users |
|
FDA MRTP Approval |
USA |
+$325 million (2023) |
7% market share gain |
|
Localized Production |
Africa |
19% cost reduction |
27% export growth |
Challenge
- Stringent regulatory frameworks: One of the significant restraints witnessed by the smokeless tobacco market includes strict regulatory approvals that ensure product safety. The health complications associated with smokeless tobacco necessitate rigorous quality control procedures and delayed product approvals. Besides, the delayed product clearance is hindering manufacturers' interest in developing smokeless products. In this context MRTP pathway imposed by the U.S. FDA delayed approvals with only 8 products cleared since 2020 similarly, Japan's nicotine pouch regulations were delayed by 6 months.
Smokeless Tobacco Market: Key Insights
| Report Attribute | Details |
|---|---|
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
4.7% |
|
Base Year Market Size (2024) |
USD 22.9 billion |
|
Forecast Year Market Size (2037) |
USD 36.3 billion |
|
Regional Scope |
|
Smokeless Tobacco Segmentation
Product Type (Nicotine Pouches, Chewing Tobacco, Snuff, Dissolvable Tobacco)
The nicotine pouches segment is expected to garner the highest share of 32.9% in the market by the end of 2037. The dominance of the segment is attributable to the global shift towards smokeless tobacco and a large consumer base. For instance, in 2024, the U.S. FDA reported that the approved products generated a substantial revenue of 5.3 billion in the U.S. Besides, in 2024 CDC states that nicotine pouches mitigate the complications associated with combustion and nitrosamines involved in smoking tobacco. Hence, this fuels the segment growth, thereby uplifting market demand.
Distribution Channel (Online Retail, Offline Retail)
The online retail segment is projected to account for a lucrative share of 45.6% in the market during the forecast period. The growth in the segment is subject to the worldwide preference for e-commerce, with the online sales growing at a 9.3% CAGR as reported by USITC 2024. Besides, the EU banned offline sales in five countries, which further accelerated a 62% sales increase in digital platforms. In this context, British American Tobacco gained an additional 20% revenue increment with these platforms. Hence, these factors are anticipated to augment the segment’s growth.
Our in-depth analysis of the global market includes the following segments:
|
Product Type |
|
|
Distribution Channel |
|
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Customize this ReportSmokeless Tobacco Industry - Regional Synopsis
North America Market Analysis
The North America smokeless tobacco market is projected to register the highest share of 38.8% during the forecast period. The region benefits from a well-established medical infrastructure and supportive regulatory frameworks. Furthermore, according to the SEC government in 2024, the Medicare expenditure for mitigating complications associated with tobacco reached a substantial amount of USD 820 million, and the investments for research and development are targeting the Gen Z generation for smokeless preferences. Increasing collaborations between tobacco providers and public healthcare systems are propelling further market growth in the region.
Canada's smokeless tobacco market is witnessing growth at a 3.8% CAGR, driven by an increased adoption of nicotine pouches as reported by Health Canada in 2024. Besides, in 2024, the provincial healthcare reforms, such as Ontario, allocated a huge amount of USD 122 million for tobacco cessation, which is a 20% increase from 2021. In 2024, CIHI reported that certain laws make it difficult for key players to use branding, so firms are leveraging non-tobacco nicotine products, thereby positioning Canada as a key leader in the market during the forecast timeline.
APAC Market Statistics
Asia Pacific’s smokeless tobacco market is the fastest growing by capturing 25.5% of global revenue share by 2037. The growth in the region is subject to the risk reduction trends imposed by governing bodies and cultural acceptance of smokeless tobacco, with an increased preference. Besides the presence of global exporters such as India and Japan, Asia Pacific positions itself as the major exporter of smokeless tobacco. For instance, in 2024, Japan’s smokeless tobacco demand reached USD 98.4 billion, highlighting an increased revenue. Hence, these factors will significantly boost the market expansion in the Asia Pacific region.
India is a global leader in the smokeless tobacco market due to its tremendous capacity in chewing tobacco that supports approximately 12 million farmers through cultivation and processing, as reported by the government of India in 2024. In 2023, CBIC reported that imposing 28% GST on the smokeless tobacco products resulted in the expansion of sales by 24%. Furthermore, the investments for affordable products, that as British American Tobacco's investment of USD 210 million, are expanding the rural access to smokeless products. Thus, this denotes a positive outlook for market development.
Companies Dominating the Smokeless Tobacco Landscape
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
Companies emphasizing smokeless tobacco products are focusing on regional expansion by establishing distribution centers in developing nations to improve supply chain efficiency. This is dragging the interest of domestic firms to establish their footprint in the global market landscape, to strengthen their ecosystem. Besides, the firms are leveraging enhanced approvals, partnerships, and substantial investment activities. Furthermore, ongoing research to bring innovation in the field is propelling a healthy competition, that is Altria’s $520M investment for nicotine pouches.
Below is the list of some prominent players in the industry:
|
Company Name |
Country |
Market Share (2024) |
|
Swedish Match AB |
Sweden |
22.4% |
|
Altria Group |
USA |
18.6% |
|
British American Tobacco |
UK |
15.5% |
|
Philip Morris International |
USA/Swiss |
12.3% |
|
Japan Tobacco International |
Japan |
8.5% |
|
Imperial Brands |
UK |
xx% |
|
DS Group |
India |
xx% |
|
Mac Baren |
Denmark |
xx% |
|
GN Tobacco |
Sweden |
xx% |
|
Swisher International |
USA |
xx% |
|
Karelia Tobacco |
Greece |
xx% |
|
Korea Tobacco & Ginseng |
South Korea |
xx% |
|
V2 Tobacco |
Denmark |
xx% |
|
Gotlandssnus |
Sweden |
xx% |
|
AG Snus |
Sweden |
xx% |
|
Manikchand Group |
India |
xx% |
|
Taboca |
Brazil |
xx% |
|
Arnold André |
Germany |
xx% |
|
Feelm |
South Korea |
xx% |
|
Jeet International |
India |
xx% |
Below are the areas covered for each company under the top 15 global manufacturers:
In the News
- In June 2024, FDA-approved Low-Nitrosamine Snus developed by Altria and NIH-funded researchers, which reduces carcinogens by 90% vs. conventional snus.
- In March 2024, Swedish Match launched ZYN Citrus Boost in the U.S. with FDA MRTP authorization, featuring 6mg nicotine strength and vitamin-enhanced flavors, targeting health-conscious users.
- In January 2024, British American Tobacco launched Velo Max First tobacco-free nicotine gum in India, priced 40% lower than competitors.
Author Credits: Radhika Pawar
- Report ID: 2559
- Published Date: May 29, 2025
- Report Format: PDF, PPT
