The global flavour capsule cigarette market is expected to attain a valuation of USD 9,654 million in 2023 and is projected to reach USD 26,903.3 million by 2033, expanding at a CAGR of 11% during the forecast period.
The adoption of Heated Tobacco Products (HTPs) technology is driven by their potential for reduced exposure, making them a re-emerging product category. This technology's ability to heat tobacco without combustion, minimizing the release of nicotine and other chemicals, has contributed to its growth. Flavored capsule cigarettes, with a nicotine content ranging from 19% to 23% compared to conventional cigarettes, further fuel the demand for HTPs.
Research findings indicate that nicotine constitutes a significant portion (57-83%) of cigarette emissions. Comparatively, HTP products emit significantly lower levels of toxicants, at least 62% lower than conventional products. Additionally, studies have shown that smoking HTP products does not increase the risk of endothelial dysfunction, oxidative stress, or inflammation. These factors have contributed to the positive growth of the cigarette flavor capsules market.
The millennial preference has consistently driven growth in various markets, including the flavored capsules market. This trend is expected to positively influence the demand for flavored capsule cigarettes in the coming years as well.
According to a survey conducted by the United States Centre for Disease Control (CDC), approximately 3.2 million middle and high school students demonstrated a preference for flavored capsule cigarettes over regular ones. Brands have specifically targeted this age group as they are reported to be the primary users of such cigarettes. The appeal to millennials stems from the better taste, smooth inhalation experience, and a wide range of flavor options that cater to their preferences.
| Report Attribute | Details |
|---|---|
| Expected Market Value (2023) | USD 9,654 million |
| Anticipated Forecast Value (2033) | USD 26,903.3 million |
| Projected Growth Rate (2023 to 2033) | CAGR of 11% |
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The flavour capsule cigarette market was worth USD 8,588.5 million in 2018. It accumulated a market value of USD 9,282.70 million in 2022 while growing at a CAGR of 2.0% during the historical period.
Political factors determine the extent to which a government influences restrictions on tobacco products. However, legal factors include both internal and external aspects including consumer laws, safety standards, and labor laws.
For instance; there is a positive, accelerating international trend to ban menthol capsules and flavours in tobacco products that could potentially hinder growth in the market. The demand for flavour capsule cigarette is expected to grow with a CAGR of 10% while reaching USD 26,903.3 million by end of the forecast period.
Cigarette smokers, both occasional and frequent, are shifting to dual pill flavouring tobacco products to enjoy a more personalized experience. Dual pills are incorporated in carbon or tube filters. Devices having two pills provide customers with a greater flavour profile by letting them burst once for either of the flavours or twice for a mixture of both flavours.
Nevertheless, double flavour capsule cigarettes are said to produce more nicotine, carbon monoxide, and tar than traditional cigarettes. Furthermore, the double capsule flavour cigarettes last longer, rising the chances of severe lung infections by approximately 20 times. This is likely to hold back sales in the long term.
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People often smoke as a form of ‘self-medication' to alleviate stress. However, studies have shown that smoking tends to increase anxiety and tension in the long term. Relief from smoking is fleeting and is often followed by withdrawal symptoms and increased cravings.
Adults who are depressed are twice as likely to smoke. Nicotine causes the chemical dopamine to be released in the brain. However, smoking causes the brain to turn off its own mechanism for producing dopamine, resulting in a decrease in supply over time, which in turn prompts people to smoke more. Thus, such beliefs increase the frequency of smoking and consumption of flavour capsule cigarettes.
Latin America is anticipated to remain one of the more attractive markets during the forecast period, according to Future Market Insights. According to the study, Chile is expected to account for over 25% of the Latin American market in year 2023.
The country is home to numerous manufacturers, and also holds a significant share of global smokers This factor is directly linked to the frequency of smoking and consumption of capsule cigarette products in Chile.
China is amongst the fastest emergent country in the East Asia region. By 2033, it is expected to account for over 43% of flavour capsule cigarette sales, supported by a vast consumer base. The demand for flavor capsule cigarettes in the region is expected to grow with a CAGR of 4.5% from 2023 to 2033.
Increasing popularity of flavored tobacco products, particularly among millennials in China is a prime reason driving sales in the region for the foreseeable future.
According to FMI analysis, the United States accounted for a revenue share of 22.6% in 2022. The region is expected to grow with a CAGR of 4% during the forecast period. More than 18.6 million people are current smokers of menthol cigarettes in the country.
Early Age smoking has grown tremendously in recent years, especially in developed economies like the United States. Along with this, per capita consumption and expenditure for nicotine-based products have also increased.
In April 2021, the Food and Drug Administration stated that it is planning to place a ban on tobacco merchandise in the following year including menthol as a characterizing flavour in cigarettes which can restrict the market growth in the region.
India accounted for around 19% of the value share in the South Asia flavour capsule cigarette market in year 2022 and is expected to grow with a compound annual growth rate of 25.2% over forecasted period.
India is home to a large young population who are a key target demographic for manufacturers. As a result, increasing consumption of cigarettes in India heightens the prospects of flavour capsule cigarettes in the region.
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Menthol flavour cigarettes hold a dominant share in terms of value and volume accounting for around 56.2% of market share in year 2023 by value and are expected that menthol flavoured cigarettes are likely to continue their dominance. The segment is expected to grow with an impressive CAGR of 12.6% during the forecast period.
Young people who smoke menthol cigarettes are estimated to be 80% more likely than those who smoke conventional cigarettes to become lifelong smokers, which makes menthol dominant in the market.
Menthol also reduces nicotine's irritating effects by desensitizing receptors, reducing the harshness of smoking resulting in greater systemic nicotine exposure and addiction.
Single capsules are estimated to dominate and account for over 69% of the market by 2033. The innovation of capsule cigarettes has contributed to their increased attraction among customers, particularly among younger individuals.
Due to the physical response to bursting the capsule, the sound associated with the capsule popping, and the resulting shift in flavour and aroma, these items are also considered to have multimodal appeal. It has been deemed desirable that smokers had the ability to adjust their sensory experience at their leisure.
The economy price range segment is expected to dominate the market and account for over 74% of the market by 2023. The segment is expected to grow with a significant CAGR of 15.4% during the forecast period.
Economy segments account for a larger share of the market owing to higher appeal among the low- and middle-class consumer demographic. Also, most new smokers are young, which is especially true in price-sensitive countries.
The indirect sales segment is expected to contribute a revenue share of more than 67% in the year 2023 and is expected to grow with a compound annual growth of 14.2% from 2023 to 2033.
Increasing number of supermarkets and hypermarkets is a key reason for growth of this segment. The extensive reach of online platforms with convenient payment methods in developed and developing countries is likely to boost indirect sales in the near future.
Start-ups are crucial in identifying growth opportunities, including the Flavour capsule cigarette market. They effectively translate inputs to outputs and adapt to market uncertainities, contributing to the industry's expansion. Some start-ups are expected to drive growth in the flavour capsule cigarette market.
The market for flavor capsule cigarettes is highly competitive, with numerous prominent industry players making substantial investments in their production.
The key industry players are Benson & Hedge, Bohem Café, Camel Double, Chesterfield, Craven a Click, Davidoff, Dunhill, Esse, Fortune Tribal, Harmony, Hollywood, Imperial Tobacco (Winston), Insignia, ITC (Gold flake), Kent, L&M, Lucky Strike, Marlboro, Pall Mall.
Prominent market players are implementing organic growth strategies such as acquisitions, mergers, partnerships, and collaborations to strengthen their product portfolios. This concerted effort is anticipated to drive the growth of the global flavor capsule cigarette market.
| Report Attribute | Details |
|---|---|
| Market Value in 2023 | USD 9,654 million |
| Market Value in 2033 | USD 25,206.3 million |
| Growth Rate | CAGR of 10% from 2023 to 2033 |
| Base Year for Estimation | 2022 |
| Historical Data | 2018 to 2022 |
| Forecast Period | 2023 to 2033 |
| Quantitative Units | Revenue in USD million and CAGR from 2023 to 2033 |
| Report Coverage | Revenue Forecast, Volume Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends, and Pricing Analysis |
| Segments Covered | Flavor, Product Type, Price Range, Distribution Channel, Region |
| Regions Covered | North America; Latin America; Europe; Asia Pacific; Middle East & Africa |
| Key Countries Profiled | United States, Canada, Brazil, Mexico, Germany, United Kingdom, France, Spain, Italy, India, China, Japan, Malaysia, Singapore, Thailand, South Korea, Australia, New Zealand, GCC Countries, South Africa, Israel |
| Key Companies Profiled | Benson & Hedge; Bohem Café; Camel Double; Chesterfield; Craven a Click; Davidoff; Dunhill; Esse; Fortune Tribal; Harmony; Hallywood; Imperial Tobacco (Winston); Insignia; ITC (Gold Flake); Kent; L&M; Lucky Strike; Marlboro; Pall Mall |
| Customization & Pricing | Available Upon Request |
The overall industry size is estimated to be around USD 9,654 million in 2023.
The global demand is expected to soar at 11% CAGR till 2033.
Based on flavour, the overall market is segmented into menthol, clove, and fruit.
The United States accounted for 22.6% of global market in 2022.
Benson & Hedge, Bohem Café, and Camel Double are the top companies.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Flavour 5.1. Menthol Flavoured 5.2. Clove Flavoured 5.3. Fruit Flavoured 5.4. Others 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Product Type 6.1. Single Capsule 6.2. Double Capsule 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Price Range 7.1. Economic 7.2. Premium 8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Distribution Channel 8.1. Direct sales 8.2. Retail sales 8.2.1. Modern Trade 8.2.2. Specialty Stores 8.2.3. Convenience Stores 8.2.4. Online Retailing 9. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 9.1. North America 9.2. Latin America 9.3. Europe 9.4. Asia Pacific 9.5. MEA 10. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. Asia Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. MEA Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 15. Key Countries Market Analysis 16. Market Structure Analysis 17. Competition Analysis 17.1. Benson & Hedge 17.2. Bohem Café 17.3. Camel Double 17.4. Chesterfield 17.5. Craven a Click 17.6. Davidoff 17.7. Dunhill 17.8. Esse 17.9. Fortune Tribal 17.10. Harmony 17.11. Hallywood 17.12. Imperial Tobacco (Winston) 17.13. Insignia 17.14. ITC (Gold Flake) 17.15. Kent 1716. L&M 17.17. Lucky Strike 17.18. Marlboro 17.19. Pall Mall 18. Assumptions & Acronyms Used 19. Research Methodology
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Flavour Capsule Cigarette Market
