Next Generation Tobacco Products Market – Trends Forecast Till 2030

Market Snapshot

Market Overview

The global Next Generation Tobacco Product market size was estimated at USD 26.02 billion in 2023 and is projected to reach USD 54.7 billion in 2030 at a CAGR of 11.2% during the forecast period 2023-2030.

According to the esteemed World Health Organization (WHO), it has been brought to light that more than a staggering 8 million individuals meet their demise annually as a direct consequence of tobacco use. The utilization of tobacco has been established to induce and provoke various afflictions, namely cardiovascular and respiratory diseases, on top of a plethora of over 20 various subtypes of cancer, and various other health conditions. In a bid to reduce the risk of tobacco-related diseases, manufacturers of tobacco products have been seeking to introduce novel products into the market. One such product was launched by Philip Morris in May of 2019, which goes by the name of IQOS. This exceptional electronic device has the ability to heat paper-wrapped tobacco-filled sticks and in consequence, generate nicotine-containing aerosol. The awe-inspiring product has been introduced as an alternative to cigarettes.

There are a multitude of factors which are responsible for instigating growth in the next-generation tobacco product market, such as the escalating demand for next-generation tobacco products, the ubiquity of diseases that are linked to the usage of tobacco products, the increasing consumption of tobacco products amongst female individuals and students, and the augmenting investments that are being made towards the advancement of next-generation tobacco products. Additionally, the rise in population, the proliferation of individuals who are health-conscious, and the enactment of policies that prohibit smoking in indoor public places and workspaces shall bolster the growth of the next-generation tobacco product market during the forecast period. Notwithstanding, the market growth is impeded by certain aftereffects of next-generation tobacco products.

The spread of the COVID-19 pandemic resulted in decline of the market,  global COVID-19 pandemic has remarkably and significantly influenced the growth of the market in various sectors and industries, primarily due to the implementation of strict and rigorous lockdown measures imposed by governments and regulatory bodies across the world.

Delvens Industry Expert's Standpoint

The primary driving force behind the demand for the next generation tobacco products market is the high demand that results from increasing consumer disposable income. Additionally, the rapid increase in awareness and shift in consumer perception, alongside their inclination towards less harmful tobacco products, as well as the burgeoning consumer knowledge and rise in product awareness, will provide numerous growth opportunities for the next generation tobacco products market. The next generation tobacco products market is experiencing a surge in demand due to the rapidly increasing number of product launches. Moreover, the easy accessibility of superior-quality products is having a significant impact on the growth of the next generation tobacco products market. The forecast period is expected to witness substantial growth in tobacco product consumption among females and students, as well as a rise in investments in next-generation tobacco products. Furthermore, the high development and commercialization of new generation products such as snus, tobacco heating products, and vapor products are also expected to drive the growth of the next generation tobacco products market during the aforementioned forecast period.

Market Portfolio

Key Findings

• On the basis of device type, the next generation tobacco products market refers to a category of tobacco products that are different from traditional cigarettes and tobacco products. This market is segmented into different types of devices, which include e-cigarettes, vaps, mods, e-hookahs, pens, and other devices. E-cigarettes are electronic devices that heat a liquid (usually containing nicotine) to create a vapor that is inhaled by the user. Vaps, also known as vaporizers, are similar to e-cigarettes but are often larger and more customizable. Mods, short for modifications, are devices that allow users to customize their vaping experience by adjusting factors such as temperature and wattage. E-hookahs are similar to traditional hookahs but are electronic and do not require charcoal or tobacco.

• On the basis of system, The next generation tobacco products market refers to a category of tobacco products that are different from traditional cigarettes and tobacco products.This market is segmented into different types of vaping systems, which are devices that heat a liquid to create a vapor that is inhaled by the user. The first type of vaping system is the open vaping system, which allows users to refill the device with their own e-liquid and customize their vaping experience. The second type is the closed vaping system, which uses pre-filled cartridges that cannot be refilled by the user. The third type is the semi-closed system, which allows users to refill the device with a limited selection of pre-filled cartridges.

• On the basis of product, this market is segmented into different types of products based on their characteristics and usage. One of the segments is tobacco heating products, which are devices that heat tobacco instead of burning it, producing a vapor that can be inhaled. Another segment is vapor products, which include e-cigarettes, vaps, mods, e-hookahs, pens, and other similar devices that produce a vapor that can be inhaled. Snus products are another segment, which are a type of smokeless tobacco that is placed under the upper lip and does not require spitting.
   
• The market is also divided into various regions such as North America, Europe, Asia-Pacific, South America, and Middle East and Africa. The Asia-Pacific region has emerged as the frontrunner in the next generation tobacco products market, owing to the increasing significance of advertising as a crucial mechanism for marketing the various product forms on satellite television and social media channels within this particular geographic region.

Regional Analysis

Asia-Pacific to Dominate the Market

• The Asia-Pacific region has emerged as the frontrunner in the next generation tobacco products market, owing to the increasing significance of advertising as a crucial mechanism for marketing the various product forms on satellite television and social media channels within this particular geographic region.
   
• On the other hand, the Middle East and Africa region is poised to witness a remarkable expansion in the coming years, as evidenced by the projected significant growth rate.