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February 16, 2021, New York, USA – According to the Centre for Disease Prevention and Control (CDC), in 2019, 14% of US adults engaged in smoking. This amounts to over 34.1 million adults in the United States. Furthermore, trends like e-cigarettes are also on the rise among young people, as nearly 4.7 million middle and high school students in the United States reported smoking at least one tobacco product, including e-cigarettes in 2019. Furthermore, every day about 1600 young people take up smoking cigarettes in the United States. According to the CDC, hookah is gaining popularity around the world in countries like United States, Britain, France, Russia, and the Middle East, among others.
According to the CDC, in 2018, over 7.8%, or 1 in every 13 adults had used hookah with tobacco. Additionally, the hookah remains a popular pastime among urban dwellers, with 19.3% of adults consuming it in cities. The historic appeals of certain brands among different ethnic groups also remain a major driver for the consumption of tobacco in the United States. For example, conventionally, menthol cigarettes were manufactured to appeal to African Americans, who continue to report the highest consumption of all popular mentholated brands. Similarly, women remain susceptible to longer, and slimmer forms of cigarettes like Capri brands, or Virginia slims. The growing demand for new products like hookah, and the strong traditional appeal of cigarettes among different ethnic, and gender groups remain a strong driver of growth in the global tobacco and hookah market.
E-Cigarettes Remain Key to Growth as Appeal Among Youth Soars
According to a nationwide study by the CDC, in 2020, nearly 20% of high school students, and 4.7% of middle school students consumed e-cigarettes. Furthermore, nearly 40% of high school students and 20% of middle school students reported smoking 20 or more cigarettes in the past 30 days. Additionally, 22.5% of high school students and nearly 10% of middle school students reported daily usage of e-cigarettes. Moreover, 82.9% of all e-cigarette smokers reported using flavored e-cigarettes, including 84.7% high school students, and 73.9% middle school students. The pre-filled pods remained also the most popular product among high schoolers with, 48.5% of students reporting its consumption, while 26.5% reporting using disposables. Tanks were also a common variety with 14.8%. The numbers remained similar for students in middle school. The demand for fruit flavor remained highest with 73.1% opting for it among high school students, while mint was used by 55.8%, and demand candy or dessert flavor remained promising with 36.4% penetration. Students from middle school also preferred menthol among similar preferences for other flavors. Despite the major appeal for pre-filled pods among consumers, the use of disposable rose from 2.4% to 26.5% during 2019-2020. The growing demand for e-cigarettes, the strong appeal of flavored cigarettes, and the promising growth of packaging varieties remain key drivers to growth in the tobacco and hookah market. On February 6, 2020, the Food and Drug Administration implemented a policy to enforce the manufacturing, distribution, and sale of certain authorized flavored prefilled pods, or cartridge-based e-cigarettes. The policy will not impact sales of tobacco or menthol products.
Growth of Smokeless Tobacco Remains Promising Prospect
The rising awareness about natural varieties of tobacco, the affinity of growing consumer base with natural products, and their cost-effectiveness promise major growth for the tobacco, and hookah market. The sales of smokeless tobacco stood at 124.6 million pounds in 2011. Moreover, the largest growth in sales of these products was witnessed in the moist snuff category. The moist snuff tobacco remains an appealing draw for people in rural areas, as it is often associated with historical grandeur. Moreover, it also comes in many natural varieties like betel or areca nut. The historic use of snuff tobacco goes back to the 1400s in the US and is widely spread in Japan, India, Europe, China. Today, the practice of ‘snuff dipping’ wherein tobacco is placed between gum and cheek for a period of time is the most popular form of its use in the US. The growing demand for natural products, its appeal to people who want to quit smoking, and its grand heritage promise major growth for the global tobacco and hookah market.
Growing Demand for Global Brands Continues to Drive Robust Growth
According to the 2017 sales volumes, Marlboro is the leading brand of cigarette brand in the United States. In 2017, the sales of the brand amounted to more than 7 of its nearest competitors combined. Furthermore, the three main brands in the US including Camel, Newport, and Marlboro continue to remain in robust demand in the US among young people. The establishment of branding continues to play a pivotal role in the growth of tobacco consumption, as African Americans account for 84.6% of the consumption of mentholated brands according to the most recent figures by CDC. Furthermore, 36.0% of consumption in the market consisted of mentholated brands in 2018, while 99.7% were filtered cigarettes. The popularity of mentholated cigarettes also remained high in the United States among other ethnic groups with 38.0% among Asians, 46.9% among Hispanics, and 28.9% among whites. The increasingly unfavorable regulatory environment remains a major restraint for growth in the global tobacco and hookah market. For example, in 2010, cigarette manufacturers were allowed to label their cigarettes as light, mild, or ultra-light. This created the perception of less harmful products with branding. This is likely to come under fire as awareness about the harmful effects of tobacco rises.
The global tobacco and hookah market report is segmented as follows:
By Type (Hookah)
By Distribution Channels
By Geographic Scope
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