Our product categories and markets
For more than 20 years, Swedish Match has been at the forefront of change. While other large global tobacco companies still rely on cigarettes for the vast majority of their business models, Swedish Match decided long ago to take a different route.
The markets in which Swedish Match engages, and the market segments in which Swedish Match competes, reflect the Company’s intentional and longlasting evolution of its portfolio of products, in harmony with changing consumer trends, in line with a strategy that contributes to the vision of a world without cigarettes.
The largest contributor to both revenues and profits falls within the Swedish Match portfolio of smokefree products, which runs the range from more traditional offerings, such as moist snuff and chewing tobacco in the US, to more modern forms of snus in Scandinavia, to nicotine pouches which are becoming increasingly available in a number of countries. In the US, Swedish Match also sells machine made cigars, which has historically played an important part of the overall product portfolio, providing opportunities for income growth, while also providing support for our entire portfolio of products on the US market. Swedish Match also participates in the markets for other products, such as matches and lighters for household and other uses, sold in many countries throughout the world.
- The global tobacco market is composed of smoking tobacco products, such as cigarettes, cigars, and pipe tobacco, as well as smokefree tobacco products, such as snus, moist snuff, and chewing tobacco.
- The largest segment of the global tobacco market is cigarettes, accounting for more than 85 percent of all tobacco consumed globally.1) With no cigarettes in its portfolio and vision of a world without cigarettes, Swedish Match stands apart.
- Modern smokefree products, including nicotine pouches, provide an attractive alternative to cigarettes. Other examples of cigarette alternatives, both with and without tobacco, include e-cigarettes, vaping products and heat-not-burn devices.
- In the US, the dominant forms of smokefree products are moist snuff and chewing tobacco, while snus is a niche category.
- In the US, the nicotine pouch category is rapidly growing and accounted for more than 30 percent of smokefree pouch volumes (measured in cans) in 2020.2)
- In Scandinavia, the dominant form of smokefree is snus, while nicotine pouches are an increasingly important and rapidly growing category.
- Outside of the US and Scandinavia, snus is only available in a limited number of countries. The sale of snus is banned within the European Union and certain other markets. Nicotine pouches are becoming more widely available in a number of countries, including EU member states.
- Other smokefree products include chewing products such as chew bags and tobacco bits, which are available in a number of European countries.
- The US machine made cigar market grew to exceed 8 billion sticks in 2020.
- The global match market is dependent upon strong local brands and the category is declining in most countries. The market for premium disposable lighters is declining in many western countries while growing in certain other markets.
1) Source: Euromonitor.
2) Based on MSA distributor shipments and include nicotine pouches, snus and moist snuff pouches, full year 2020.