As per a study by FMI, the flavour capsule cigarette market is expected to surpass valuation of US$1.6bn in 2021 as consumption of cigarette continues to rise on a global scale. The global flavour capsule cigarette market is projected to register a CAGR of 13.1% during the forecast period of 2021 and 2031.
According to a study by FMI, the market exhibited an impressive 11.7% year-on-year growth between 2020 and 2021. Consequently, the market is anticipated to surpass valuation of US$5.5 Bn by the end of 2031.
Menthol flavour capsule cigarettes will emerge as top selling products and account for 51% of revenue generated by 2031 as rising number of millennials are attracted to it. The growth of market is highly dependent on internal and external legal factors, consumer laws, safety standards, labor laws, and other government restrictions on tobacco products.
For instance, ban on menthol capsules and flavour tobacco products in certain countries is likely to hinder market growth during the forecast period.
Similarly, dual pill flavoring tobacco products are rising in popularity due to their more personalized experience. This type provides customer with greater flavours as two pills allow a mix of both or either one of them.
However, they are known to produce more carbon monoxide, tar, and nicotine than traditional cigarettes. It also increases the chances of severe lung infections as it lasts longer. This will moderately hold back sales in the long run.
“Key players in the market are investing in product innovations while \adhering to government restrictions. There is increasing emphasis on product launches in order to cater the rising demand for flavoured cigarettes,” says the FMI analyst.
- Indirect sales segment is expected to account for 66% revenue shares in 2021 and will grow at 11.8% CAGR owing to increasing number of hypermarkets and supermarkets.
- Economy price range is expected to dominate the global market, accounting for 72% by 2021. This segment account for larger shares owing to increased appeal from low-and middle-income consumer demographics.
- Single capsule holder will account for 68% of market by 2031 as younger consumers are attracted to capsule popping, flavour shift, and aroma.
- Menthol flavour cigarettes will hold dominance in terms of value and volume and are forecast to account for 55% of market in 2021. It is rising in demand as it eliminates the irritating effects of nicotine and reduces the harshness of smoking.
- Chile will emerge as a key market in Latin America, accounting for 24% of the regional market value in 2021. The country is home for numerous manufacturers, which will continue driving sales.
- Rising availability in online platforms and easy payment methods in developed and developing economies will create lucrative opportunities for flavour capsule cigarette market.
- Popularity of flavoured tobacco products among millennials is a major factor driving the sales of flavour capsule cigarettes.
- As nicotine aids in releasing dopamine in brain, many millennials and adults take part in it to decrease stress and depression. Hectic lifestyle often becomes a key enabler of the habit of smoking. In turn it creates opportunities for flavour capsule cigarette sales.
- Ban on tobacco merchandize including menthol as characterizing flavour from FDA in April 2020 will pose as threat in market growth of flavour capsule cigarettes.
- Rising awareness about serious health problems associated with smoking in the long run and shift towards active lifestyle will pose as a threat to global flavour capsule cigarette market.
The key players operating in the global flavour capsule cigarette market are focusing on launching innovative products in the market. They are also engaging in mergers and acquisitions to expand their geographical presence and production capacity.
Top players are capitalizing on consumer experience by offering a wide assortment of products in the market. Flavour capsule cigarette sales is highly depended on tightening budgets, direct or indirect taxation, and economic recession.
Poda Lifestyle and Wellness Ltd. in June 2021, announced it patent-protected Heat-Not-Burn system for capsule cigarettes.
Republic Technologies in January 2021 launched it new flavour fusion cards for its Swan cigarette filters.
Key players operating in the flavour capsule cigarette market profiled by FMI:
- Benson & Hedge
- Bohem Café
- Camel Double
- Craven a Click
- Fortune Tribal
- Imperial Tobacco (Winston)
- ITC (Gold flake)
- Lucky Strike
- Pall Mall
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More Insights on the Flavour Capsule Cigarette Market:
FMI provides an unbiased analysis of the flavour capsule cigarette market, presenting historical demand data (2016-2020) and forecast statistics for the period of (2021-2031). The study divulges compelling insights on the global flavour capsule cigarette market with a detailed segmentation on the basis of
- Menthol Flavoured
- Clove Flavoured
- Fruit Flavoured
- Single Capsule
- Double Capsule
- Direct sales
- Indirect sales
- Modern Trade
- Specialty Stores
- Convenience Stores
- Online Retailing
- North America
- Latin America
- East Asia
- South Asia
- Middle East and Africa (MEA)
Key Questions Covered in the Flavour Capsule Cigarette Market Report
- The report offers detailed insights into flavour capsule cigarette demand outlook for 2021-2031
- The market study also highlights projected sales growth for flavour capsule cigarette market between 2021 and 2031
- Flavour capsule cigarette market survey identifies key growth drivers, restraints, and other forces impacting prevailing trends, evaluation of current market size, and technological advancements within the industry