Smokeless Tobacco Market Trends

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:

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

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.