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.
|Swedish Match shipment volumes||2017||2016|
|Moist snuff, US||127.4||131.4|
|Snus and nicotine pouches, outside Scandinavia1)||13.2||7.8|
|Cigars, million of sticks||1.629||1.472|
|Chewing tobacco, thousands of pounds||6.341||6.709|
|Matches, billion sticks||65.0||72.0|
|Lighters, million units||368.1||399.2|
1) Includes V2 Tobacco snus volumes from date of acquisition.
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.
1) Swedish Match and industry estimates, full year 2016, on a can equivalent basis.
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).
2) Swedish Match and industry estimates for mass market cigars excluding little cigars, full year 2016.
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’.
1) Swedish Match and industry estimates, full year 2016.
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.
Match competition varies widely between markets. Lighter competitors include Bic, Tokai, Flamagas, and a number of other smaller manufacturers.