According to New Nicotine Alliance, Snus is a moist, smokeless powdered tobacco. It is sold as a loose powder or pre-packaged in a small sachet (a bit like a mini tea bag). It contains ground tobacco, salt and may contain food-grade smoke aroma flavorings, such as citrus, bergamot, juniper, herb or floral flavors. Most Scandinavian snus is produced in Sweden where it is regulated as a food under the Swedish Food Act. Snus fulfils the criteria for a tobacco harm reduction product. It is a low risk nicotine product with 0.5% to 1% of nicotine composition in it and has helped reduce smoking and smoking related diseases.
Snus is placed between the upper lip and gum. The nicotine is released into the saliva, with the rate of release affected by the amount of saliva. Snus, unlike other forms of tobacco doesn’t produce fumes on consumption, thereby reducing the respiratory risk for the consumer as well as his surroundings.
According to New Nicotine Alliance, as compared to smoking, snus poses about 1% of the risk of cancer and cardiovascular disease. It is considered to be 95% to 99%, less risky than smoking, which is increasing the inclination of consumers toward snus. Also, snus is not associated with an elevated risk of pancreatic cancer and poses no respiratory risk. Snus manufacturers are taking initiatives to educate the potential consumers regarding the advantages of snus over other tobacco related products, which is fueling growth of the global snus market. For instance, Swedish Match started stores in Strömstad and Gothenburg to sell its world-renowned snus products in addition to deploying store staff members to create awareness about the benefits of consuming snus over other tobacco products.
Increasing health concerns and initiatives related to tobacco ban is restraining growth of global snus market Initiatives taken by Government aid consumer in quitting the tobacco consumption by adopting various healthy habits. The World Health Organization (WHO) and the European Respiratory Society (ERS) have jointly launched a project on tobacco cessation training. As part of this multi-year, multi-country project, WHO and ERS are training primary care providers to provide tobacco cessation interventions to all patients with respiratory diseases.
Europe holds the largest market share for snus, owing to Government rules and regulations with respect to smoking and contaminating the environment, which has massively called for smokeless entities for the users. Hence, consumers are adopting snus and electronic cigarettes, which do not pollute the environment as compared to conventional cigarettes.
Sweden is the major exporter of snus and the pouched snus is mostly consumed by the Swedish citizens due to convenience. According to the National Center for Biotechnology Information (NCBI), an average consumer consumes about 19 g of snus per day and the trend is more common with the Swedish males. Snus, according to the Swedish consumers fulfils the social functions of smoking and is far better than cigarettes due to which people the existing and the new users are opting for snus more than any other product. Certain anti-smoking organizations in Europe are trying to ban the export of the product to other countries, which is restraining growth of the global snus market in Sweden.
Likewise, in Norway too, the Swedish snus is legally sold and socially accepted. It is majorly mostly consumed by the younger generation and is the most common form of tobacco consumed. Cigarette sales are declining, as more people curb the deadly habit due to rising taxes and a proliferation of alternatives such as e-cigarettes and snus, which are potentially less harmful.
The global snus market players are adopting various strategies to maintain leading position in market such as merger, acquisition, partnership, product innovation. Swedish Match AB in 2016 had acquired V2 Tobacco, a privately held smokeless tobacco company operating in Denmark, for an undisclosed amount of money. V2 Tobacco possesses a modern and adaptable production, which allows Swedish Match an improved flexibility and expanded opportunities to adapt to changing consumer desires and hence Swedish Match has acquired 100% of the shares in the V2 Tobacco’s production, sales and marketing in Denmark.
The various players in the global snus market include, Altria Group, Inc., British American Tobacco plc, Imperial Brands PLC, Fiedler & Lundgren AB, Taboca AS, Swedish Match AB and Gotlandssnus AB.
On the basis of product type, the global snus market is segmented into:
On the basis of distribution channel, the global snus market is segmented into:
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