Menthol Cigarette Market Analysis Report By Capsule, By End User, By Region And Segment Forecasts From 2019 To 2025

Industry Insights

The global menthol cigarette market size was worth USD 80.0 billion in 2018. The market is expected to grow at a CAGR of 3.1% over the forecast period, 2019 to 2025. Menthol's ability to offer fresh, anesthetic effects and the cooling effect is generating a huge appeal among the younger generation and thereby driving the market growth. Menthol is known to make the cigarette smooth for inhaling by reducing the smoke’s harness, thus making it popular among beginners and women smokers.

There has been a considerable rise in the number of menthol cigarette smokers owing to growing intolerance and irritation from non-menthol products. Growing demand for flavor-based cigarettes further proliferates the sales of menthol cigarettes. Moreover, a large number of occasional smokers and smokers willing to quit smoking prefer menthol flavor as they find it mild and less harmful. Additionally, matured menthol smokers are seeking a comparatively higher concentration of menthol to get relief against dryness, burn, and irritation in the throat caused due to non-menthol cigarettes.

Menthol flavor attracts many millennials smokers including women as it provides a refreshing smell while smoking. It has been found that the number of people smoking menthol cigarettes is constant while non-menthol cigarette smokers have reduced in number over the past few years. Menthol tends to increase the addictive substance in the human body while decreasing the metabolism of nicotine, thus making it difficult to quit. All these aforementioned factors are expected to supplement the menthol cigarettes market growth over the forecast period.

However, the proposal for the potential ban by the FDA on menthol cigarettes is expected to adversely affect market growth. This ban is expected to increase the black and illicit marketing of menthol flavor-based cigarette. Apart from banning the menthol flavor in few regions, governments across the globe are continuously increasing the taxes on tobacco products. Governments’ aims behind increasing the taxes are to reduce cigarette consumption. These factors are likely to hinder the growth of the market.

Capsule Insights

Based on the capsule type, the market is categorized into a double capsule and a single capsule. Among them, a single capsule held the largest market share with 88.8% in 2018. In a single capsule, consumers can easily change the flavor strength by compressing the filter inside. The introduction of innovative products in this segment has enabled smokers to press the capsule as they need. Such capsule allows consumers to smoke either flavor or non-flavor cigarettes, thus attributing to the market growth.

On the other hand, a double capsule is likely to exhibit a CAGR of 3.3% during the forecast period. This capsule type is available in two flavors, thus providing an option to consumers to feel the taste of two different flavors. Growing demand for this flavor among young and women consumers is expected to fuel the market growth. Further, matured menthol smokers who are more inclined toward flavor and taste are increasingly opting for double capsule menthol cigarettes.

End-User Insights

Among different end-users, the male segment accounted for 57.3% of the menthol cigarettes market share in 2018. In this segment, younger generations are the major contributors to the overall consumption of menthol cigarettes. Among all smokers from high schools, 54.5% smoke menthol cigarettes while this number is 48.4% among all middle school students.

Growing demand for flavor-based and refreshing cigarettes among males is attributing to the growth of this segment. Nearly 90% of all African American cigarette smokers prefer menthol cigarettes in the United States while only 26% of white smokers prefer menthol flavor.

On the other hand, the female segment is likely to grow at a CAGR of 2.9% during the forecast period. Female accounts for a significant number of smokers in Europe, North America, and South America. Females accounted for 57.5% of the share in Europe in 2018. Overall, nearly 40% of the women prefer menthol flavor while only 31% of men prefer menthol flavor to non-menthol cigarettes.

Regional Insights

The Asia Pacific occupied the largest share with 64.2%, in 2018. The region is projected to grow at the fastest growth rate throughout the forecast period. In the Asia Pacific, China alone held nearly 50% of the market share. Increasing purchasing power and the introduction of new products are attributing to the growth of China. Nearly 300 new products were introduced in the Chinese market from 2016 to 2017. Male smokers held 52.2% of the market share while females contributed to 47.8% of the market share in China, in 2018.

On the other hand, Central and South America are expected to grow at a significant CAGR of 3.2% over the forecast period. Growing demand for single as well as double capsule products owing to their smoothness is driving the demand in the region. Female smokers prefer menthol flavor to males in Central &South America thus, this segment is expected to grow at a faster rate during the forecast period.

Menthol Cigarette Market Share Insights

Key players operating the market are Imperial Brands plc, Alfred Dunhill, Commonwealth Brands, Lorillard Tobacco, Tobacco & Ginseng Corporation, Philip Morris International Inc., Korea Tobacco & Ginseng Corporation, and Imperial Brands plc among others. Companies are focusing on strategic measures like a new product launch, merger & acquisition to strengthen their hold in the market.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels, and provides an analysis of the latest industry trends in each of the sub-segments from 2015 to 2025. For the purpose of this study, Million Insights has segmented the global menthol cigarette market report on the basis of the capsule, end-user, and region:

• Capsule Outlook (Revenue, USD Million, 2015 - 2025)
    • Single Capsule
    • Double Capsule

• End User Outlook (Revenue, USD Million, 2015 - 2025)
    • Male
    • Female

• Regional Outlook (Revenue, USD Million, 2015 - 2025)
    • North America
        • U.S.
    • Europe
        • Russia
        • Germany
    • the Asia Pacific
        • China
        • Indonesia
    • Central & South America
        • Brazil
    • Middle East & Africa
        • South Africa