THE GLOBAL MARKET RESEARCH COMPANY, EUROMONITOR HAS RELEASED NEW DATA THIS WEEK RELATING TO THE TOBACCO INDUSTRY.
They predict that by the year 2021 the combustible cigarette tobacco market will record a $7.7 billion loss, whereas heated tobacco and vapour products will record a $13.2 billion growth during the same period.
Does this spell the end of combustible tobacco?
For the first time in decades, the global value of cigarettes as a proportion of tobacco sales has fallen below 90% and by 2021 should fall again to 86%. While the use of traditional tobacco cigarettes continues to decline, the use of vaping products continues to grow.
The head of Tobacco Research at Euromonitor International, Shane MacGuill said:
The continued growth in vapour 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.
Is the rest of the world following the vaping trend?
Japan had the largest ‘heated tobacco’ market in 2016, accounting for 96% of the global market, followed by Portugal, Switzerland and Germany. Heated tobacco includes any product that heats tobacco, this also includes any product that heats e-liquid and produces vapour, rather than burning tobacco.
While traditional tobacco sales continue to decline, vaping continues to grow. During the past five years global sales of disposable e-cigarettes have risen by 320% while sales of standard e-cig kits grew by 72%.
Shane MacGuill concluded by saying:
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 percent 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
Will the tobacco market go up in smoke by 2021? Let us know what you think.
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