Other tobacco products grew in value at a global level in 2016. In smoking tobacco, fine cut’s price advantage over cigarettes continues to fuel value growth in Europe, while shisha has a strong foundation in the Middle East and Africa. Sales of cigars remain centred in the US and China, while cigarillos are popular in the US and Europe. Smokeless tobacco is only present in a few geographies, such as North America and Scandinavia, but can see growth as an alternative to smoking in the future.
Smoking tobacco registered positive year-on-year volume and value growth. This was mainly driven by positive performance in key fine cut markets in Western Europe, and continued growth in pipe tobacco in the Middle East. However, the US smoking tobacco market has been slowing down as consumers increasingly turn to other tobacco alternatives.
The global cigars and cigarillos market continued to grow in 2016. The positive cigars dynamic is largely driven by the two biggest markets for the category –the US and China. The US also leads the cigarillos category, mainly driven by flavoured cigarillos, while price fighter cigarillos are popular in certain European markets. Future growth in the category will come from emerging markets.
Smokeless tobacco showed strong value growth in 2016, driven by Swedish-style snus and US-style “dip”. Asian-style chewing tobacco was responsible for the sharp decline in volumes, attributed to the shrinking Indian market. Some moist snuff products, especially Swedish-style snus, are increasingly seen as viable cigarette alternatives. In this, they will face increasing competition from vapour products in the future.
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