Markets

Swedish Match is a global company, with strong local brands. Swedish Match also has international brands, such as General snus and Cricket lighters. The Company’s largest markets are in Scandinavia and the US.

Market positions

 

Shipment volumes

Swedish Match shipment volumes20162015
Snus, million cans241.3236.3
Moist snuff, million cans131.4132.1
Cigars, million sticks1,4721,256
Chewing tobacco, thousand pounds6,7097,390
Matches, billion sticks72.073.1
Lighters, million units399.2402.9

 

Snus in Scandinavia

The Scandinavian snus market is estimated to have amounted to slightly more than 375 million cans in 2016, up by approximately 4 percent from previous year.1) Consumption has been migrating from traditional loose products to pouch products, which at the end of 2016 accounted for approximately 80 percent of volumes in Scandinavia.1)

1) Swedish Match estimates of can volume using Nielsen data (excluding tobacconists), full year 2016.

Snus and moist snuff in the US

The moist snuff market in the US is concentrated in the southern and mid-Atlantic states. In 2016, the market is estimated by Swedish Match to have grown by approximately 3 percent, to approximately 1.5 billion cans, with the pouch segment growing more rapidly than the overall market and accounting for approximately 15 percent. The snus market segment is relatively new and accounts for less than 5 percent of the overall snus and moist snuff market.

Cigars in the US

Swedish Match estimates that the US mass market cigar market grew by approximately 5 percent in volume terms in 2016 and amounts to more than 6.5 billion cigars excluding little cigars1) (a segment in which Swedish Match does not participate). The market is highly competitive with extensive activity for low priced and promotional products. In addition to participating in the homogenized tobacco leaf segment, Swedish Match participates in the natural leaf segment, a smaller but growing segment in which the Company holds the leading position.

1) Little cigars are typically filter tipped and packaged in packs of 20 (similar to cigarette packaging).

Chewing tobacco in the US

The US chewing tobacco market is in a long term state of volume decline. It is estimated that the market declined by approximately 5 percent in 2016. However, the decline was more pronounced in the premium segment where Swedish Match has a leading position. In this segment, the decline was in excess of 9 percent. The industry must continuously strive to reduce costs and address pricing in order to maintain profitability in this market. One area of growth however has been for products sold in a larger bulk pack format, often called ‘big bags’.

Lights worldwide

Lights products have been used for a variety of occasions. The market for traditional match products has been declining in most markets over the past decade while lighter use has shown growth in some markets, most notably in Asia.