Our 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.
Shipment volumes
| Swedish Match shipment volumes | 2018 | 2017 |
|---|---|---|
| Snus, Scandinavia1) | 263.4 | 247.6 |
| Moist snuff, US | 126.3 | 127.4 |
| Snus and nicotine pouches, outside Scandinavia1) | 25.2 | 13.2 |
| Cigars, million of sticks | 1.703 | 1.629 |
| Chewing tobacco, thousands of pounds (excluding contract manufacturing) | 6.093 | 6.341 |
| Matches, billion sticks | 64.5 | 65.0 |
| Lighters, million units | 333.9 | 368.1 |
1) Includes snus volumes from date of acquisition for V2 Tobacco (August 31, 2017) and Gotlandssnus (August 22, 2018).
Snus and pouch products without tobacco in Scandinavia
The Scandinavian snus market is estimated to have amounted to more than 430 million cans in 2018, up by approximately 6 percent from previous year.1) Consumption has been migrating from traditional loose products to pouch products, which at the end of 2018 accounted for more than 85 percent of volumes in Scandinavia.1)
Swedish Match holds the leading position in Scandinavia with Sweden being the largest market. The segment for nicotine pouch products has been growing in both Sweden and Norway2). The Scandinavian market also includes pouch products with neither nicotine nor tobacco.
Competition snus, Sweden1)
| Competition snus, Sweden | Percent |
|---|---|
| Swedish Match | 63 |
| Imperial Brands | 17 |
| BAT | 12 |
| Japan Tobacco International | 7 |
| Others | 2 |
Competition snus, Norway1)
| Competition snus, Norway | Percent |
|---|---|
| Swedish Match | 51 |
| Imperial Brands | 40 |
| BAT | 8 |
Snus consumption by price segment, Sweden1)
| Snus consumption by price segment, Sweden | Percent |
|---|---|
| Premium | 54 |
| Value | 46 |
Snus consumption by price segment, Norway1)
| Snus consumption by price segment, Norway | Percent |
|---|---|
| Premium | 100 |
1) Swedish Match’s estimates using Nielsen data (excluding tobacconists for Sweden), full year 2018.
2) In Norway, nicotine pouch products contain a small amount of tobacco.
Snus and nicotine pouches without tobacco outside Scandinavia
The main market for Swedish snus and nicotine pouches without tobacco outside Scandinavia is the US. The US snus category in recent years has shown growth and in 2018 was estimated by Swedish Match to be around 60 million can market. Swedish Match holds the number 3 position in this market. Swedish Match is currently also active in the snus markets in Canada and Malaysia. A relatively new product category in the US is nicotine pouches without tobacco. This category is small, but is growing at a rapid pace and the market size in 2018 is estimated to have been more than 13 million cans.
Competition snus, the US1)
| Competition snus, Sweden | Percent |
|---|---|
| Swedish Match | 10 |
| BAT (Reynolds American) | 78 |
| Altria (USSTC) | 13 |
1) Swedish Match and industry estimates, full year 2018, on a can equivalent basis.
Moist snuff in the US
The moist snuff market in the US is concentrated in the southern and mid-Atlantic states. In 2018, the market is estimated by Swedish Match to amount to more than 1.5 billion cans, with growth in the pouch segment offsetting declines for loose products. The pouch segment accounts for approximately 17 percent of the total moist snuff market. Swedish Match holds the number 3 position for moist snuff in the US.
Competition moist snuff, the US1)
| Competition snus, Sweden | Percent |
|---|---|
| Swedish Match | 8 |
| Others | 92 |
Consumption moist snuff by format, the US1)
| Moist snuff consumption by format, the US | Percent |
|---|---|
| Loose | 83 |
| Pouches | 17 |
1) Swedish Match and industry estimates, full year 2018, on a can equivalent basis.
Cigars in the US
Swedish Match estimates that the US machine made (mass market) cigar market, excluding little cigars1) (a segment in which Swedish Match does not participate), grew by approximately 4 percent in volume terms in 2018 and amounts to approximately 7.5 billion cigars. The market is highly competitive with extensive activity for low priced and promotional products. Swedish Match is the largest participant in the natural leaf segment and also participates in the larger homogenized tobacco leaf segment. For the total market of mass market cigars in the US, Swedish Match estimates that it holds the number 2 position based on actual shipments.
Competition mass market cigars, the US2)
| Competition mass market cigars, the US | Percent |
|---|---|
| Swedish Match | 23 |
| Swisher | 36 |
| Imperial Brands (ITG Brands) | 13 |
| Altria (Middleton) | 23 |
| Others | 6 |
Consumption mass market cigars, the US2)
| Consumption mass market cigars, the US | Percent |
|---|---|
| HTL small | 37 |
| HTL value | 9 |
| Natural leaf small | 17 |
| Natural rolled leaf | 10 |
| Pipe cigars | 25 |
| Others | 2 |
1) Little cigars are typically filter tipped and packaged in packs of 20 (similar to cigarette packaging).
2) Swedish Match and industry estimates for mass market cigars excluding little cigars, full year 2018.
Chewing tobacco in the US and Europe
Swedish Match sells chewing tobacco in the US, as well as chew bags and tobacco bits in certain European markets. The US chewing tobacco market is in a long term state of volume decline and it is estimated that the market declined by approximately 5 percent in 2018. Swedish Match holds the leading position for chewing tobacco in the US. Within the premium segment, where Swedish Match has a leading position, the decline was more pronounced and is estimated by Swedish Match to have been approximately 10 percent. During the year, Swedish Match has been gaining share in both the premium and value segment with slower than industry volume declines.
In Europe, the market for chew bags is small, but growing. Denmark is one of the larger markets and is estimated by Swedish Match to amount to more than 2 million cans. After acquiring V2 Tobacco during 2017 and Oliver Twist in 2018, Swedish Match has broadened its geographical footprint for its chewing products. The competitive landscape within this category has seen new players in the market during recent years.
Significant markets for chew bags in Europe
Germany
Denmark
Switzerland
Slovenia
Czech Republic
Competition chewing tobacco, the US1)
| Competition chewing tobacco, the US | Percent |
|---|---|
| Swedish Match | 40 |
| National Tobacco | 28 |
| Swisher | 19 |
| BAT (Reynolds American) | 13 |
Consumption chewing tobacco, the US1)
| Consumption chewing tobacco , the US | Percent |
|---|---|
| Premium | 46 |
| Value | 54 |
1) Swedish Match and industry estimates, full year 2018.
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. Lighter use has shown growth in some markets, most notably in Asia. Swedish Match has a strong presence in Latin America, especially for matches in Brazil, as well as in large parts of Europe and Asia Pacific.
Competition
Match competition varies widely between markets. Lighter competitors include Bic, Tokai, Flamagas, and a number of other smaller manufacturers.
