Next Generation Tobacco Products Market – Trends Forecast Till 2030

Market Snapshot

Market Overview

The global Next Generation Tobacco Product market size was estimated at USD 26.02 billion in 2023 and is projected to reach USD 54.7 billion in 2030 at a CAGR of 11.2% during the forecast period 2023-2030.

According to the esteemed World Health Organization (WHO), it has been brought to light that more than a staggering 8 million individuals meet their demise annually as a direct consequence of tobacco use. The utilization of tobacco has been established to induce and provoke various afflictions, namely cardiovascular and respiratory diseases, on top of a plethora of over 20 various subtypes of cancer, and various other health conditions. In a bid to reduce the risk of tobacco-related diseases, manufacturers of tobacco products have been seeking to introduce novel products into the market. One such product was launched by Philip Morris in May of 2019, which goes by the name of IQOS. This exceptional electronic device has the ability to heat paper-wrapped tobacco-filled sticks and in consequence, generate nicotine-containing aerosol. The awe-inspiring product has been introduced as an alternative to cigarettes.

There are a multitude of factors which are responsible for instigating growth in the next-generation tobacco product market, such as the escalating demand for next-generation tobacco products, the ubiquity of diseases that are linked to the usage of tobacco products, the increasing consumption of tobacco products amongst female individuals and students, and the augmenting investments that are being made towards the advancement of next-generation tobacco products. Additionally, the rise in population, the proliferation of individuals who are health-conscious, and the enactment of policies that prohibit smoking in indoor public places and workspaces shall bolster the growth of the next-generation tobacco product market during the forecast period. Notwithstanding, the market growth is impeded by certain aftereffects of next-generation tobacco products.

The spread of the COVID-19 pandemic resulted in decline of the market,  global COVID-19 pandemic has remarkably and significantly influenced the growth of the market in various sectors and industries, primarily due to the implementation of strict and rigorous lockdown measures imposed by governments and regulatory bodies across the world.

Delvens Industry Expert's Standpoint

The primary driving force behind the demand for the next generation tobacco products market is the high demand that results from increasing consumer disposable income. Additionally, the rapid increase in awareness and shift in consumer perception, alongside their inclination towards less harmful tobacco products, as well as the burgeoning consumer knowledge and rise in product awareness, will provide numerous growth opportunities for the next generation tobacco products market. The next generation tobacco products market is experiencing a surge in demand due to the rapidly increasing number of product launches. Moreover, the easy accessibility of superior-quality products is having a significant impact on the growth of the next generation tobacco products market. The forecast period is expected to witness substantial growth in tobacco product consumption among females and students, as well as a rise in investments in next-generation tobacco products. Furthermore, the high development and commercialization of new generation products such as snus, tobacco heating products, and vapor products are also expected to drive the growth of the next generation tobacco products market during the aforementioned forecast period.

Market Portfolio

Key Findings

• On the basis of device type, the next generation tobacco products market refers to a category of tobacco products that are different from traditional cigarettes and tobacco products. This market is segmented into different types of devices, which include e-cigarettes, vaps, mods, e-hookahs, pens, and other devices. E-cigarettes are electronic devices that heat a liquid (usually containing nicotine) to create a vapor that is inhaled by the user. Vaps, also known as vaporizers, are similar to e-cigarettes but are often larger and more customizable. Mods, short for modifications, are devices that allow users to customize their vaping experience by adjusting factors such as temperature and wattage. E-hookahs are similar to traditional hookahs but are electronic and do not require charcoal or tobacco.

• On the basis of system, The next generation tobacco products market refers to a category of tobacco products that are different from traditional cigarettes and tobacco products.This market is segmented into different types of vaping systems, which are devices that heat a liquid to create a vapor that is inhaled by the user. The first type of vaping system is the open vaping system, which allows users to refill the device with their own e-liquid and customize their vaping experience. The second type is the closed vaping system, which uses pre-filled cartridges that cannot be refilled by the user. The third type is the semi-closed system, which allows users to refill the device with a limited selection of pre-filled cartridges.

• On the basis of product, this market is segmented into different types of products based on their characteristics and usage. One of the segments is tobacco heating products, which are devices that heat tobacco instead of burning it, producing a vapor that can be inhaled. Another segment is vapor products, which include e-cigarettes, vaps, mods, e-hookahs, pens, and other similar devices that produce a vapor that can be inhaled. Snus products are another segment, which are a type of smokeless tobacco that is placed under the upper lip and does not require spitting.
   
• The market is also divided into various regions such as North America, Europe, Asia-Pacific, South America, and Middle East and Africa. The Asia-Pacific region has emerged as the frontrunner in the next generation tobacco products market, owing to the increasing significance of advertising as a crucial mechanism for marketing the various product forms on satellite television and social media channels within this particular geographic region.

Regional Analysis

Asia-Pacific to Dominate the Market

• The Asia-Pacific region has emerged as the frontrunner in the next generation tobacco products market, owing to the increasing significance of advertising as a crucial mechanism for marketing the various product forms on satellite television and social media channels within this particular geographic region.
   
• On the other hand, the Middle East and Africa region is poised to witness a remarkable expansion in the coming years, as evidenced by the projected significant growth rate.

Competitive Landscape

• Adris grupa
• Altadis
• Altria Group Inc.
• American electronic cigarette company
• Arnold André GmbH & Co. KG
• British American Tobacco (BAT)
• China National Tobacco Corporation
• Davidoff
• Dharampal Satyapal
• DS Group
• Eastern Tobacco Company
• Fiedler & Lundgren AB
• FIN Branding Group LLC.
• Gajane AB
• Global Horizon Ventures Limited (GHVL)
• GN Tobacco Sweden AB
• Gotlands Snus AB
• Gudang Garam
• Hay Island Holding Corporation
• Healthier Choices Management Corp (Ruthless Vapor Corp)
• House of Oliver Twist A/S
• Imperial Brands
• Indian Tobacco Company (ITC) Limited.
• International Vapor Group
• J Well France
• Japan Tobacco Inc.
• JT International AG
• Juul Labs Inc
• Korea Tobacco (KT&G)
• Lorillard Tobacco Company
• MAHAK Group
• Manikchand Group
• MCIG Inc., Mighty
• Nerudia
• Nicotek Llc.
• NJOY Inc, P.T.
• Karyadibya Mahardhika
• Pax Labs
• Philip Morris International (PMI)
• Ploom TECH
• J. Reynolds Vapor Company

Recent Developments

• In Oct 2021, the Food and Drug Administration granted electronic cigarette and related items to remain on the market in the United States. R.J. Reynolds Vapor Company received approval for their Vuse Solo electronic nicotine delivery system device and tobacco-flavoured e-liquid pods.
   
• In July 2021, Philip Morris International Inc. (PMI) has agreed to acquire Fertin Pharma A/S (Fertin Pharma). Fertin's wide portfolio of technologies, expanding business mix, and world-class experience will enhance innovation pipeline and capabilities, enabling PMI to achieve its aim of increasing net revenues from smoke-free products by offering speed and scale in oral administration.

Reasons to Acquire

• Increase your understanding of the market for identifying the most suitable strategies and decisions based on sales or revenue fluctuations in terms of volume and value, distribution chain analysis, market trends, and factors.
   
• Gain authentic and granular data access for the Next Generation Tobacco Product Market to understand the trends and the factors involved in changing market situations.
   
• Qualitative and quantitative data utilization to discover arrays of future growth from the market trends of leaders to market visionaries and then recognize the significant areas to compete in the future.
   
• In-depth analysis of the changing trends of the market by visualizing the historic and forecast year growth patterns.

Report Scope