Cigarette Market To Record $7.7 Billion Loss By 2021
The global cigarette market is set to record a $7.7 billion loss by 2021, according to market research provider Euromonitor International.
The new data shows that the tobacco industry is starting to shift from cigarettes to vaping, as the value of the global cigarette category as a proportion of total tobacco sales fell below 90% in 2016, and it is estimated that it will drop to 86% by 2021.
“The continued growth in vapour products and in particular the emergence of heated tobacco as a viable alternative mode of consumption, represents the major element of disruption for the tobacco industry,” said Shane MacGuill, head of tobacco research at Euromonitor International.
Euromonitor's research shows that heated tobacco will be the fastest-growing category in the next five years, reaching $15.4 billion by 2021 - an increase of 691%.
Heated tobacco includes products that heat rather than combust tobacco to produce vapour rather than smoke. These products currently have a limited presence but are expected to become more popular in the future.
Japan was the largest heated tobacco market in 2016, accounting for 96% of the total global sales of heated tobacco products, followed by Germany, Switzerland and Portugal.
“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," said MacGuill.
"Heated tobacco prospects are strong and strengthening. On this evidence, it is a truly a coming force in global tobacco.”
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Sarah Harford. Click subscribe to sign up to ESM: The European Supermarket Magazine.