Smokeless Tobacco Use Sees Upward Trend

HONG KONG --Smokeless tobacco products are continuing to grow in popularity, even at a time when the cigarette market appears to be contracting.

According to an industry report released by World Street Fundamentals, the smokeless tobacco market has been growing between 2 and 3 percent every year since 2003. Smokeless products include moist snuff, chewing tobacco and dry snuff. The competition between the smoked (including cigarettes, cigars and roll-your-own) and the smokeless tobacco markets has been heating up as companies have begun to market smokeless tobacco as an alternative to cigarettes in situations where adult tobacco users cannot or choose not to smoke. Changing consumer mindsets, government regulation and taxation will continue to be an ever-present influence on tobacco sales, resulting in widespread shifts within the marketplace, the report stated.

In the report, World Street Fundamentals highlights two national tobacco manufacturers: Reynolds American Inc. and Star Scientific Inc. Reynolds American was highlighted for its two business segments: RJR Tobacco, which includes Camel and Pall Mall cigarette brands, and Conwood, which includes its moist snuff brand. Star Scientific was highlighted for its proprietary technology for producing low-TSNA tobacco, which is used in its dissolvable smokeless products Ariva and Stonewall.