GLOBAL NICOTINE REPLACEMENT THERAPY MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2023 - 2030)

The global nicotine replacement therapy market size is expected to reach US$ 105.34 Bn by 2030, from US$ 53.47 Bn in 2023, exhibiting a CAGR of 10.2% during the forecast period.

Nicotine replacement therapy (NRT) involves the use of nicotine gum, patches, lozenges, or other products to help people stop smoking cigarettes or other tobacco products. These products deliver a controlled and measured dose of nicotine to the body so that smokers craving for nicotine is reduced and nicotine addiction withdrawal symptoms are avoided while quitting.

Global Nicotine Replacement Therapy Market- Regional Insights

• North America is expected to be the largest market for nicotine replacement therapy during the forecast period, accounting for over 35.7% of the market share in 2023. North America has long been the dominant region in the global nicotine replacement therapy market. The large population of smokers, strong healthcare infrastructure and high disposable incomes have supported the widespread adoption of NRT products over the years. The region is home to several leading pharmaceutical companies with extensive R&D capabilities and manufacturing facilities for NRT gums, patches, lozenges and other aids. Additionally, supportive public policies around smoking cessation along with health insurance coverage for such therapies have made medications more accessible and affordable. While combustible cigarette usage has declined overall in major markets like the U.S., the demand for alternative nicotine delivery options remains strong.
• Asia Pacific market is expected to be the second-largest market for nicotine replacement therapy market, accounting for over 25.2% of the market share in 2023. The Asia Pacific region has emerged as the fastest growing market for nicotine replacement therapies in recent times. Countries like China and India account for nearly 40% of the global smoking population and governments have been promoting initiatives to improve public health. Rising health awareness, rapid economic growth and expansion of private health insurance are some of the key drivers propelling the nicotine replacement therapy industry. Furthermore, local manufacturers have intensified their focus on developing affordable generic medications as smoking rates continue to rise across smaller cities and towns. International players have also started introducing innovative product formats more suitable for the regional preferences and price-points. While regulatory frameworks are still evolving, the large pool of current and future smokers indicates huge market potential over the coming decade.
• Europe market is expected to be the fastest-growing market for nicotine replacement therapy market, with a share of 19% during the forecast period. The growth of the market in Europe is attributed to the increasing prevalence of smoking cigarettes in the region.

Analyst’s Views: The global nicotine replacement therapy market looks promising over the next five years. Growing awareness about the harmful effects of smoking is a major driver as it is pushing more people towards quitting smoking and adopting safer alternatives. Wide availability of convenient NRT products such as patches, gums, lozenges, and e-cigarettes are helping boost adoption rates. Another positive is the increasing number of awareness programs by governments and health organizations regarding benefits of quitting smoking.

However, social acceptance of smoking still remains a challenge, hindering complete transition to safer alternatives. Availability of illicit cigarettes and lack of stringent enforcement also discourages some from quitting. High prices of certain premium NRT brands make them unaffordable for developing markets. Lack of medical reimbursement for NRT in some countries act as a restraint.

North America dominated the market in the past and is expected to retain its position due to progressive policies. However, Asia Pacific is likely to offer largest opportunities in the coming years owing to a massive smoking population and growing health and wellness trend. China in particular presents lucrative prospects as it is witnessing a notable shift towards healthier lifestyles. Similarly, Latin American and Middle Eastern markets are anticipated to emerge as high potential territories for nicotine replacement therapy providers over the forecast period.

Figure 1. Global Nicotine Replacement Therapy Market Share (%), By Region, 2023

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Global Nicotine Replacement Therapy Market - Drivers

• Raising awareness about health risks: As awareness about the various health risks associated with smoking has continued to increase across the globe, it has prompted many individuals to try and quit smoking. Studies have shown that smoking cigarettes increases the risk of various cancer types as well as other chronic diseases such as heart disease and stroke. The negative health impacts of smoking have been widely publicized through anti-smoking campaigns by governments and health organizations. This has led to a change in social attitudes towards smoking over the past few decades. More people now see cigarettes as a health risk rather than a casual pleasure. As a result, the desire to quit smoking has grown significantly.

Nicotine replacement therapy products have emerged as a popular option for smokers looking to quit. By providing controlled doses of nicotine without the other harmful chemicals found in cigarettes, these products help address nicotine cravings and withdrawal symptoms that arise when trying to quit smoking. The patches, gums, lozenges, and other nicotine products allow users to gradually reduce their nicotine intake over time in a safer manner. With growing health concerns about smoking, more individuals are open to trying nicotine replacement therapy as an aid in their quest to quit cigarettes and improve their health. The rising awareness about the dangers of smoking and benefits of quitting has increased the demand for nicotine replacement therapy worldwide.

• Stress of modern lifestyle: In today's fast-paced world with changing societal pressures and personal challenges, stress levels seem to be rising across populations. Juggling responsibilities at home and work, information overload, financial demands are some common stress triggers for urban dwellers. Stress management has become an important part of self-care. However, unhealthy coping mechanisms like smoking continue to be popular. The temporary stress relief from nicotine makes it difficult for many smokers to quit, especially during stressful periods. With stressful modern lifestyles now prevalent across both developed and developing nations, cigarette smoking persists partly due to its role in relieving stress.

Nicotine replacement therapy provides an alternative source of nicotine without all the health risks of cigarettes. The patches, gums and other NRT products deliver nicotine in measured amounts to address cravings as well as provide some stress relief. For smokers motivated to improve their health but struggling with stress, nicotine replacements provide a way to gradually wean off cigarettes. Work-related travel restrictions during the pandemic also resulted in higher stress levels for some, rekindling their cigarette habits. NRT has enabled some to stick to their quit attempt. The growing stresses of modern urban lifestyles have increased demand for nicotine replacements to support smoking cessation efforts worldwide.

• Availability of generic NRT products: The availability of generic Nicotine Replacement Therapy (NRT) products in the global nicotine replacement therapy market plays a significant role in the industry dynamics considering their cost-effectiveness compared to branded options. Generics typically become available after the patents on branded products expire, opening the door for other manufacturers to produce and sell the same pharmaceutical substances under different names, usually at a lower price. Here are a few points surrounding the availability of generic NRT products in the global market
  • Cost Savings: Generic NRT products offer a more affordable option for consumers, which can expand access to NRT and encourage more smokers to attempt quitting.
  • Market Expansion: The introduction of generics often results in market expansion as lower prices can lead to increased use, potentially growing the overall NRT market.
  • Competitive Pressure: When generics enter the market, they can put pricing pressure on branded products, leading to a more competitive market landscape.

Global Nicotine Replacement Therapy Market- Opportunities

• Combination NRT therapy:
• Combination Nicotine Replacement Therapy (NRT) refers to the use of more than one type of NRT product concurrently to improve the chances of successfully quitting smoking. Research has shown that using a combination of NRT products can be more effective than using a single form of NRT. In the global NRT market, the following points highlight the importance and impact of combination NRT therapy:
  • Increased Efficacy: Using two forms of NRT together, such as nicotine gum and patches, often increases the overall level of nicotine, which can more effectively manage withdrawal symptoms and cravings, leading to higher success rates in smoking cessation
  • Targeted Relief: A combination approach allows for both continuous nicotine delivery (through patches) and the ability to address sudden cravings (with short-acting forms like gum, lozenges, or inhalers)
  • Market Differentiation: Products that are specifically designed to be used in combination offer a unique selling point and can create market differentiation for manufacturers
  • Patient-Centered Care: Combination NRT can be personalized to individual needs, making it a flexible option for healthcare providers to recommend based on the specific habits and preferences of their patients
• Rising Healthcare Expenditure: One of the significant factors influencing the growth rate of the global nicotine replacement therapy market is the growing healthcare expenditure, which helps in improving its infrastructure. For instance, according to the International Health Care System of the U.S., in June 2020, U.S. government organizations aim to improve the healthcare infrastructure by increasing funding, setting legislation and national strategies, and cofounding and setting basic requirements and regulations for the Medicaid program. Similarly, in November 2022, the Canadian Institute for Health Information reported that the total health spending in Canada was US$ 331 billion in 2022, or US$ 8,563 per Canadian, while health expenditure represented 12.2% of Canada's gross domestic product (GDP) in 2022, following a high of 13.8% in 2020.
• Emerging markets in Asia Pacific and Latin America: Emerging markets in Asia Pacific and Latin America are showing significant potential in the global nicotine replacement therapy market. Here are key insights and trends in these regions
  • Asia Pacific
    • Rapid Growth: Asia Pacific is experiencing one of the fastest growth rates in the NRT market due to increasing awareness of the health risks associated with smoking, rising disposable incomes, and government initiatives to curb smoking rates
    • Population Size: With large populations in countries like China and India, the potential customer base for NRT products is vast
    • Regulatory Environment: Governments in the region are becoming more proactive in their approach to public health, leading to stricter smoking regulations and support for smoking cessation programs
  • Latin America
    • Increasing Awareness: There is growing awareness in Latin American countries regarding the negative health impacts of smoking, supported by public health campaigns and educational efforts
    • Economic Development: As economies in the region develop, there is an increase in healthcare spending and insurance coverage, which can contribute to the accessibility and affordability of NRT products
    • Market Entry: There is room for new players to enter the market as the demand for smoking cessation aids rises.

Global Nicotine Replacement Therapy Market- Trends

• Increasing online purchase of medications: The rise in online purchasing of Nicotine Replacement Therapy (NRT) products is a significant development in the global NRT market, driven by changes in consumer behavior and advancements in e-commerce. Here are some points that highlight this trend's impact and context:
  • Convenience and Anonymity: Many consumers prefer the convenience of online shopping, as it saves time and offers privacy. This is particularly appealing to individuals who may feel a social stigma associated with purchasing NRT products in person.
  • Wider Selection: Online platforms provide access to a broader range of NRT products, including different brands, formulations, and dosages, allowing consumers to find the most suitable product for their needs
  • Comparative Shopping: The ability to easily compare products, prices, and read reviews online supports informed decision-making, helping consumers to choose the best option for their smoking cessation journey
  • Subscription Services: Some online vendors offer subscription models for NRT products, ensuring a consistent supply and aiding individuals in maintaining their cessation programs without the need to repeatedly place orders
• Digitalization and m-health tools: The integration of digitalization and mobile health (m-health) tools is transforming the global nicotine replacement therapy market. These technological advancements are enhancing the way consumers access and use NRT products, as well as the manner in which healthcare providers offer support and intervention. Here's how digitalization and m-health tools are impacting the market
  • Increased Access: Digital platforms facilitate broader access to NRT products, enabling consumers to order them online and have them delivered directly to their homes
  • Telehealth Integration: Telehealth services provide smokers with online consultations and support from healthcare professionals, including prescriptions for NRT products when appropriate
  • Mobile Applications: There's a proliferation of mobile apps designed to support smoking cessation, often including features like progress tracking, personalized plans, and in-app reminders to use NRT products
  • Customization and Personalization: NRT digital tools enable individualized smoking cessation strategies based on user data and behavior, potentially increasing the effectiveness of NRT

Global Nicotine Replacement Therapy Market - Restraints

• High prices of NRT products restrain the market growth: One major challenge restraining faster growth of the nicotine replacement therapy market is the pricing of these products. Most smoking cessation aids contain pharmaceutical-grade nicotine and require extensive research and development as well as manufacturing compliance with regulatory standards. This makes NRT therapies more expensive than conventional cigarettes in many regions. For example, a week's supply of nicotine patches or gums could cost over US$ 30-40, whereas a smoker would spend less than US$ 10 on cigarettes in the same duration. The high upfront costs deter many smokers, especially those from low-income households, from adopting NRT as a quitting option. However, several drug manufacturers and retailers are introducing affordable generic versions and multibuy discounts to make therapy more accessible. Still, pricing remains a key barrier, especially in developing nations, limiting the total addressable market for NRT products.
• Side effects of NRT products: The side effects of Nicotine Replacement Therapy (NRT) products influence consumer preferences and usage patterns within the global NRT market. While NRT is widely regarded as a safer alternative to smoking, the products can still have side effects, which need to be considered by healthcare providers and patients alike. Some common side effects associated with different types of NRT products include:
  • Nicotine Patches:
    • Skin irritation at the site of application
    • Sleep disturbances, including vivid dreams or insomnia
    • Mild itching, burning, or tingling sensations
  • Nicotine Gum:
    • Mouth soreness or ulcers
    • Jaw discomfort due to chewing
    • Throat irritation
    • Hiccups and digestive issues
  • Nicotine Lozenges:
    • Sore throat
    • Mouth irritation
    • Heartburn
    • Nausea
  • Nicotine Nasal Spray:
    • Nasal irritation and runny nose
    • Sneezing
    • Throat irritation
    • Watering eyes
  • Nicotine Inhalers:
    • Throat and mouth irritation
    • Coughing
    • Headache
    • Nausea
  • Nicotine Mouth Spray:
    • Throat irritation
    • Hiccups
    • Headache
    • Nausea

These side effects can vary in intensity and frequency among different individuals. Proper usage of the products usually minimizes side effects, but some users may still experience discomfort. The profile of side effects associated with NRT products can impact market dynamics in several ways:

Product Choice: Side effects might influence the preference of one type of NRT over another, as consumers seek a comfortable and manageable cessation experience

Compliance and Adherence: Side effects can affect compliance with NRT regimens. If the side effects are perceived as too bothersome, users might discontinue the therapy prematurely

Market Education: There is a need for proper education and guidance on how to use NRT products correctly and manage side effects to improve adherence and outcomes

Figure 2. Global Nicotine Replacement Therapy Market Share (%), By Product Type, 2023

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Global Nicotine Replacement Therapy Market- Recent Developments

Product and technology Launch

• In September 2022, 22nd Century Group, a leading agricultural biotechnology company dedicated to improving health with reduced nicotine tobacco, hemp/cannabis, and hops advanced plant technologies, launched VLN, a low-nicotine cigarette in Colorado, U.S.
• In May 2022, Innokin Technology, a leading vape brand & manufacturer, launched a lineup of vaporizers with water-based vaping technology with water-based juice, AQ30. Water-based vaping delivers smoother vapor and faster satisfaction than traditional vaping systems and reduces the dehydrating qualities of vapor.
• In August 2022, MOK, the leading brand from Shenzhen IVPS Technology, specializing in the research and development, production and sales of e-cigarettes, launched its new SOLUS 2 series at a special global product launch event in Jakarta, Indonesia. SOLUS 2 Series, an upgraded version of the SOLUS series of Vaping Devices.

Business Development Activities by the Market Players

• In November 2022, Philip Morris International Inc., a U.S.-based multinational tobacco company, announced the launch of its latest heat-not-burn tobacco heating system, BONDS by IQOS with its accompanying specially designed tobacco sticks, BLENDS. A new product from IQOS, the world’s No. 1 tobacco heating system. BONDS by IQOS offers adults who would otherwise continue to smoke access to a compact, low maintenance and hassle-free to use smoke-free offer—validated by science—as a better alternative to cigarettes—to accelerate the achievement of a smoke-free future.
• In September 2022, Qnovia, Inc. (Qnovia), a pharmaceutical company developing inhaled therapeutics with an initial focus on nicotine replacement therapy (NRT) and cardiopulmonary diseases, announced that it had raised US$ 17 million in Series A funding. The financing was led by Blue Ledge Capital and included DG Ventures, Evolution VC Partners, Gaingels, TL Capital, and Vice Ventures, investment firms.

Top Companies in the Global Nicotine Replacement Therapy Market

• Johnson & Johnson Inc.
• Haleon Group of Companies
• Imperial Brands plc
• Cipla Inc.
• Pfizer Inc.
• GLENMARK PHARMACEUTICALS LTD
• Fertin Pharma
• Philip Morris Products S.A.
• British American Tobacco plc
• Japan Tobacco Inc.
• Perrigo Company plc
• Die betapharm Arzneimittel GmbH
• ITC Limited
• Sparsha Pharma International Pvt Ltd
• Alkalon A/S

Definition: Nicotine Replacement Therapy (NRT) is a medically-approved method to help people quit smoking. It involves the administration of nicotine to the body in a controlled way through the use of various products, with the primary goal of cessation from smoking or the use of other tobacco products. NRT is designed to reduce withdrawal symptoms associated with nicotine addiction, making the process of quitting less difficult.