Flavour Capsule Cigarettes Market Report

Flavour capsule cigarettes are growing more popular as it is perceived to taste better, are smoother on the throat due to low nicotine concentration, are more fun to smoke and are more appealing than non-flavoured cigarettes. The increasing demand for flavour-based cigarettes along with improved promotional techniques and new product releases by the leading market players are driving the flavour capsule cigarette market. According to the NCBI, global sales of flavoured capsule cigarettes have grown significantly over the past decade compared to menthol (non-capsule) cigarettes, which are popular in many regions.

More efforts are needed to focus on flavour and new tobacco products, that are known to attract youth. Flavour capsule smokers have higher positive smoking expectations than non-capsule smokers (e.g., reduced risk perceptions, and dietary control). Flavour capsule cigarettes are particularly appealing to women, young individuals, occasional smokers and those who have recently attempted to quit smoking. The adoption of heated tobacco product technology by manufacturers to reduce CO, HCN and other pollutants as well as millennial preference to smoke different flavoured capsules are some of the factors driving the flavour capsule cigarette market during the forecast period.

Flavour capsule cigarettes apart from having a distinct flavour, have a number of health benefits compared to traditional cigarettes. One of the reasons people prefer flavour capsule cigarettes over regular cigarettes is the clicking of the capsule while lighting the cigarette, resulting in an enhanced flavour while inhaling the smoke. Individuals often smoke as a form of 'self-medication' to relieve stress. Depressed adults are twice as likely to smoke. Nicotine causes the brain chemical dopamine to be released. Smoking also causes the brain to shut down its process of making dopamine, resulting in a decline in supply over time, prompting people to smoke more. As a result, such beliefs increase the frequency so that people smoke and consume more flavoured capsule cigarettes. The increasing number of supermarkets and hypermarkets is a major driver of the market growth. The widespread availability of online platforms with convenient payment methods in both developed and developing countries is expected to increase indirect sales in the near future.

• Continuous innovation in flavour offerings with new flavour combinations.
•  Production of flavour capsule cigarettes to offer a less intense smoking experience than traditional cigarettes.
• Premium and luxury flavour capsule cigarettes with sophisticated packaging.
• Customized flavour options for a personalized smoking experience.

The market is heavily reliant on factors such as direct or indirect taxation, economic recession or reduced budgets, all of which can have a direct impact on the conventional space and can hamper the flavour capsule cigarette market growth. According to the Centers for Disease Control and Prevention (CDC), the US Food and Drug Administration announced plans to ban menthol cigarettes and all distinguishing flavours in cigars in Apr 2021. As of Feb 2022, at least 145 US localities prohibited the sale of menthol cigarettes and other flavoured products and two cities prohibited the sale of all tobacco products. Studies have shown that smoking increases anxiety and stress over time. All these aspects are restricting the flavour capsule cigarettes market expansion. Cigarette smoking is still the biggest preventable cause of disease, disability and death in the United States.

Major companies are focusing on the launch of innovative flavour capsule cigarettes, as well as brand acquisitions and mergers to boost geographical presence and production capacity. Leading manufacturers are continuing to capitalise on consumer experience and the stability of a large product line to provide consumers with a diverse range of products to choose from. Marlboro Kretek Mint was introduced in Jan 2020 by Philip Morris International Inc. The brand line mixes the flavours of Indonesian clove and menthol to create a distinct taste. Japan Tobacco Inc. expanded its product portfolio in the United Kingdom in Mar 2020. The product line currently includes various flavour blends, that have replaced the company's previous offerings and focused on menthol capsule cigarettes.

Poda Holdings, Inc. introduced its patent-protected Heat-Not-Burn system for capsule cigarettes in Jun 2021. The design prevents cross-contamination between the heating devices and the pods, removing the need for cleaning and providing users with a convenient and enjoyable potentially lower-risk smoking experience. Republic Technologies (UK) Ltd introduced two new flavour fusion cards for use in its Swan cigarette filters brand for roll-your-own tobacco and cigarette smokers in January 2021.

The United States is expected to retain a significant share of the North American market as smoking among teenagers has increased significantly, particularly in developed countries like the U.S. Also, there has been an increase in per-capita expenditure and consumption of nicotine-based products. According to the FDA, more than 18.6 million Americans smoke menthol-flavoured cigarettes. Latin America is expected to be one of the most attractive markets during the forecast period. Flavour capsule cigarettes are becoming increasingly popular in many countries, including Mexico.

As per an NCBI study, more Mexican adult smokers choose brand types with capsules (60%) than without capsules (40%), Flavoured capsule use is strongly correlated with menthol cigarette use and the perceived taste of the capsules ranges widely. Flavour capsule cigarettes are estimated to account for more than a quarter of the Chile cigarette market, where a flavour ban has been considered but effectively defeated by the industry. The country is home to many manufacturers and a significant proportion of the world's smokers. This aspect is closely related to the prevalence of smoking in Chile and the use of flavoured capsule cigarettes. The growing popularity of flavoured tobacco products, particularly among Chinese millennials, is a major factor driving demand in the Asia-Pacific region. India has a huge young population, which is an important target demographic for manufacturers. As a result, rising cigarette usage in India raises the chances for flavour capsule cigarettes in the region.

The report provides a detailed overview of the flavour capsule cigarette market insights in regions including North America, Latin America, Europe, Asia-Pacific, Oceania, and the Middle East and Africa. The country-specific assessment for the flavour capsule cigarettes market has been offered for all regional market shares, along with forecasts, market scope estimates, price point assessment, and impact analysis of prominent countries and regions. Throughout this market research report, Y-o-Y growth and CAGR estimates are also incorporated for every country and region, to provide a detailed view of the flavour capsule cigarettes market. These Y-o-Y projections on regional and country-level markets brighten the political, economic and business environment outlook, which are anticipated to have a substantial impact on the growth of the flavour capsule cigarettes market. Some key countries and regions included in the flavour capsule cigarettes market report are as follows:

• Flavour capsule cigarettes market detailed segments and segment-wise market breakdown
• Flavour capsule cigarettes market dynamics (Recent industry trends, drivers, restraints, growth potential, opportunities in flavour capsule cigarettes industry)
• Current, historical and forthcoming 10 years market valuation in terms of flavour capsule cigarettes market size (US$ Mn), volume (Units), share (%), Y-o-Y growth rate, CAGR (%) analysis
• Flavour capsule cigarettes market demand analysis
• Flavour capsule cigarettes market pricing analysis over the forecast period (by key segment and by region)
• Flavour capsule cigarettes market regional insights with region-wise market breakdown
• Competitive analysis – key companies profiling including their market share, product offerings, and competitive strategies.
• Latest developments and innovations in the flavour capsule cigarettes market
• Regulatory landscape by key regions and key countries
• Supply chain and value chain analysis in the flavour capsule cigarettes market
• Flavour capsule cigarettes market sales and distribution strategies
• A comprehensive overview of the parent market
• A detailed viewpoint on the flavour capsule cigarettes market forecast by countries
• Mergers and acquisitions in the flavour capsule cigarettes market
• Essential information to enhance market position
• Robust research methodology