Tobacco focus expected to continue to move toward vaping and heated tobacco.
New research from Euromonitor International, a market research provider, shows the global tobacco industry is shifting from cigarettes to vaping and heated tobacco.
In fact, Euromonitor research shows that the cigarettes market will record a US$7.7 billion loss by 2021, compensated by the US$13.2 billion growth in heated tobacco products sales in the same period. In 2016, for the first time in decades, the value of the global cigarettes category as a proportion of total tobacco sales fell below 90% and by 2021 it will reach 86%. While cigarettes sales decline, the new research highlights growth in the use of vapor products, but also further changes within this segment.
“The continued growth in vapor products and in particular the emergence of heated tobacco as a viable alternative mode of consumption, represent the major element of disruption for the tobacco industry,” said Shane MacGuill, head of tobacco research at Euromonitor International.
The new research from Euromonitor shows that heated tobacco will be the fastest-growing tobacco category in the next five years to reach US$15.4 billion in 2021, up from 2 billion in 2016.
MacGuill added, “We believe that heated tobacco will gain a solid presence in at least 35 global markets by 2021, accounting for a share of 3.5% of total global cigarettes and heated tobacco value. Heated tobacco prospects are strong and strengthening. On this evidence, it is a truly a coming force in global tobacco.”