Industry Insights
The global nicotine replacement products market was estimated at USD 2.28 billion in 2017 and is expected to grow at a CAGR of 3.95% from 2017 to 2025. The rising dependence on nicotine coupled with the increasing awareness of smoking cessation will drive the growth and acceptance of de-addiction therapies over the forecast period.
Also, the promotion of anti-smoking campaigns by several market players and consistent introduction of smoking cessation products such as gums, lozenges among others is expected to further fuel the market growth. The combination of these products along with effective quit programs enhances the chances of quitting smoking.
As per the research studies published in the British Medical Journal, has emphasized the significance of smoking cessation aids and are being considered to be the most efficient tobacco addiction control methods. As per the Cancer Trends Progress Report published by the National Cancer Institute, in 2017 more than 60% of adults aged 18 years and older attempted to quit smoking for at least a day and more extended. Hence, increasing consumer willingness to quit smoking will fuel the market growth in the coming years.
The global nicotine replacement products market is driven majorly by the increasing prevalence of illness such as lung cancer, cardiac diseases, and respiratory disorders. This, in turn, is caused due to the rising consumption of tobacco in various forms that imposes a substantial public health burden across the globe. For instance, as per the data enumerated by Tobacco Atlas, every year more than 7.1 Billion deaths are caused due to the occurrence of smoking-related diseases worldwide. With an aim to control the death rates by curbing down the addiction, replacement products are made easily accessible as OTC supplies in the market.
Significant interventions by the government at a macro level such as an increase in tobacco tax, smoking restrictions in public places, ban on tobacco advertisements and promotions, and increasing awareness programs highlighting the consequences are favoring the market demand across the globe. Introduction of over the counter tobacco replacements, with an aim to reduce the urge to smoke, is supporting the growth of these products. Market players are rigorously introducing several variants of gums and lozenges with fewer side-effects ensuring enhanced accessibility will help the market growth over the forecast period.
Segmentation by Type
• Chewing Gums
• Lozenges
• Patches
Chewing gums held the maximum share among other tobacco replacement products, thereby accounting for about 49% in 2017 in the global market. Besides providing therapeutic effects, the chewing gums are accessible at an affordable price, thus prompting the increasing acceptance of these products. Moreover, the availability of flavor induced gums is also driving the demand for such products. For instance, Nicorette Gums are available in various flavors such as ice mint, fruit, spearmint, cinnamon, and others. Some of the popular gum brands include Habitrol, Nicotrol, and Nicotinell.
Nicotine patches are also gaining significant demand among the consumers due to its easy application. Transdermal patches are medicated adhesive covers that deliver a specific amount of nicotine in the bloodstream at a lower level. These products are beneficial for people who are discreetly dealing with withdrawal symptoms as they are not required to carry or consumed actively. Nicotine patches market is expected to grow at CAGR of 4.02% from 2017-2025.
Segmentation by Distribution Channel
• Supermarket and hypermarket
• Pharmacies
• Online
In 2017, pharmacies segment was the major revenue generator with a share of 59.7% in the global nicotine replacement products market. Reason being the high assurance of safety standards and consumer trust rendered by this distribution channel. The sales of tobacco replacement products in most of the countries is limited to pharmacy stores only. With the trend of keeping well-informed pharmacists and general physicians in the stores, the sales of such products are likely to increase during the forecast years.
The online sales distribution channel is expected to record significant growth in the next few years. The increasing number of internet users, ease of access, fast-paced lifestyle, 24/7 availability, convenience and numerous options to choose from constitute some of the factors expected to drive sales of these products through online medium. Moreover, discussion portals, discounts & offers on products and various promotion strategies will fuel online sales of nicotine replacement products over the forecast period.
Segmentation by Region
• North America
• U.S.
• Europe
• Germany
• UK
• Asia Pacific
• India
• China
• Central and South America
• Middle East and Africa
Asia Pacific is expected to register the highest CAGR of about 4.54% in the global market Stringent regulations formulated against smoking in India and China, is expected to drive demand for increasing acceptance of replacement products.
Chronic diseases are expected to add up to the disease burden, thereby rising to approximately 73% by 2020. This increase is supposed to be rapid especially in developing countries. For instance, in India, the number of deaths due to chronic causes every year is anticipated to almost double, thereby reaching to approximately 8 Billion in 2020. With an aim to control the death scenarios and prevent chronic diseases, the acceptance of nicotine replacement product market is likely to increase in India over the next few years.
Competitive landscape
The market is consolidated with three major players accounting for more than 65% of the global share. Johnson & Johnson, Inc., GlaxoSmithKline plc, Perrigo Co. plc are three major players operating in this market. Other significant players include Pierre Fabre SA, Laboratoires, Cipla Ltd., British American Tobacco Plc, Alchem International Pvt. Ltd., Perrigo Company plc, and Fertin Pharma. Cipla’s Nicotex brand continued to lead the replacement products and smoking cessation measures in 2018. The market players are ensuring enhanced accessibility of the products by distributing their products through both online and offline channels.
