Menthol Cigarette Market

Menthol Cigarette Market Size:

The global menthol cigarette market size reached US$ 94.7 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 118.4 Billion by 2032, exhibiting a growth rate (CAGR) of 2.4% during 2024-2032. Shifting consumer preferences towards menthol flavors, aggressive marketing targeting young adults, regulatory dynamics, surging disposable income levels, cultural norms favoring menthol variants, and technological advancements in manufacturing are some of the factors fostering the market growth.

Menthol Cigarette Market Analysis:

• Major Market Drivers: Increasing sales of menthol cigarette is primarily attributed to the escalating number of smokers around the globe, which is one of the primary factors boosting the menthol cigarette market share. The proportion of current menthol smokers switching to menthol vaping has potential to increase minority tobacco cessation and reduce known health disparities in menthol tobacco consumption is another growth-inducing factor. Furthermore, the availability of menthol cigarettes in a range of packaging and sizes means and supporting aggressive marketing by tobacco companies are stimulating the market growth. The manufacturers are also investing heavily in research and development (R&D) and have developed capsule form of menthol, enabling smokers to crush and release menthol flavor, which is accelerating the market growth. Apart from this, the surging partnerships with tobacco companies on limited edition releases or being distributed through national chains of clubs and smoke shops are stimulating the market growth.
• Key Market Trends: The menthol cigarette market trends include the recent casualization of menthol cigarettes, which allow consumers to tailor the taste of their smoke. In addition, there is a distinct trend towards premiumization, resulting in consumers willing to pay more for top quality menthol cigarettes, which is favoring the market growth. Women prefer lighter and more stylish cigarettes, which has compelled key market players to introduce slim and ultra-slim menthol cigarettes, targeting a niche female smoking culture, which is fostering the market growth. The expanding online retailing has provided a more diverse selection of menthol products, which is another growth-inducing factor for the market. Smokers are also moving towards the use of eco-friendly packaging thereby strengthening the eco-friendly packaging market.  
• Geographical Trends: The Asia Pacific boasts a high consumption rate and hosts major tobacco companies, making it the largest segment in the menthol cigarette market. This market continues to thrive due to strong consumer loyalty and effective marketing strategies. Moreover, in the Asia-Pacific region, countries like Japan and South Korea offer significant growth opportunities, driven by rising menthol cigarette consumption among young adults and female smokers. Furthermore, the UK and Germany have also seen steady growth, fueled by the success of premium menthol brands. Europe’s market is diverse, with each country contributing uniquely to the overall landscape. However, the regulatory environment and tobacco culture in these regions significantly impact market development, with stricter regulations posing challenges to market growth.
• Competitive Landscape: The competitive landscape of the market is characterized by the presence of key menthol cigarette companies, such as Alfred Dunhill Ltd, Altria Group, British American Tobacco p.l.c., China National Tobacco Corporation, Commonwealth Brands, Inc., Essentra plc, Imperial Brands PLC, Japan Tobacco Inc., KT&G Corporation, Liggett Vector Brands LLC, Reynolds American Inc and Philip Morris International Inc.
• Challenges and Opportunities: There are a variety of challenges that affect the menthol cigarette market, such as the increasingly common skepticism surrounding tobacco use (due to health concerns), and the mounting legal and administrative barriers when it comes to restrictions and regulation. Growth in the market is restricted by the ban on menthol cigarettes in different regions, notably the EU. Consumer preferences are also influenced by health campaigns and increasing awareness of the dangers of smoking. This innovation in product offerings also represents a source of opportunity-to capture an increasing share of growth in menthol capsules. Moreover, rising disposable incomes in the emerging markets and shift in lifestyles in the emerging nations seem growth potential for players in the market.
   

Menthol Cigarette Market Trends:

Shifting Consumer Preferences

The changing consumer preferences are inclined to affect the growth of the global menthol cigarette market to a large extent. Menthol is a popular flavor because it offers a cooling sensation that many consumers believe is smoother than smoking non-menthol cigarettes, leading consumers to switch to menthols more frequently than similar products. Additionally, smokers looking to get away from regular tobacco products are lured by the novelty and flavors provided by these new products, which is boosting the market growth. With the surging number of health-conscious consumers, the demand for milder menthol cigarettes (in comparison to non-menthol) has increased, which is stimulating the market growth. 

Aggressive Marketing Strategies

The strategies used by tobacco manufacturers to market their brands and gain a foothold in the market are key factors supporting the global market growth. These companies are making huge investment in targeted advertising, sponsorships, and product placement to target on a specific consumer sector and build up brand loyalty or brand awareness. Media-driven branding techniques contribute to menthol cigarettes being perceived as popular, fashionable, and socially desirable products among young adults and females. In addition, the exclusivity of the product is further reinforced through the launch of limited-edition menthol variants as well as through innovative packaging solutions, contributing to the market growth.  

Regulatory Landscape

The regulatory landscape of the global menthol cigarette market shapes different regional dynamics, as the rules and policies are different in each region. For instance, in 2022, the Food and Drug Administration (FDA) announced that the agency will propose product standards within the next year to ban menthol as a characterizing flavor in cigarettes and ban all characterizing flavors (including menthol) in cigars. Countries around the world have implemented measures to stem the use of tobacco, from prohibiting additives, to controlling advertising and promotions, to increasing taxes on tobacco products. These regulations often target menthol cigarettes specifically due to their perceived attractiveness to younger demographics and potential health risks associated with menthol flavoring.

Menthol Cigarette Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2024-2032. Our report has categorized the market based on the capsule type, end-user, size, and distribution channel.

Breakup by Capsule Type:

• Single Capsule Menthol Cigarette
• Double Capsule Menthol Cigarette
   

Single capsule menthol cigarette accounts for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the capsule type. This includes single capsule menthol cigarette and double capsule menthol cigarette. According to the report, single capsule menthol cigarette represented the largest segment.

The single capsule menthol cigarette segment is driven by the increasing demand for customizable smoking experiences among consumers seeking novelty and variety in their tobacco consumption. This segment offers smokers the ability to control the intensity of menthol flavor by crushing the capsule within the filter, providing a tailored sensory experience with each puff. Additionally, the convenience and portability of single capsule menthol cigarettes appeal to on-the-go consumers who prioritize convenience and flexibility in their smoking habits. Furthermore, the perception of single capsule menthol cigarettes as a modern and innovative product aligns with evolving consumer preferences for novel and trendy tobacco products, particularly among younger demographics and urban populations. Moreover, the segment's growth is fueled by aggressive marketing strategies employed by tobacco companies, which highlight the customizable nature and unique selling points of single capsule menthol cigarettes through targeted advertising campaigns and product promotions.

Breakup by End-User:

• Male
• Female
   

Male accounts for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the end user. This includes male and female. According to the report, male represented the largest segment.

The male segment in the menthol cigarette market is driven by several key factors, such as the increasing demand for menthol cigarettes among male smokers is propelled by the desire for a refreshing and invigorating smoking experience. Menthol's cooling sensation provides a unique sensory satisfaction, particularly favored by male smokers who seek a more enjoyable and gratifying smoking ritual. Additionally, the male segment is influenced by social factors, including peer influence and societal norms, which contribute to the widespread acceptance and popularity of menthol cigarettes among male smokers. The perception of menthol cigarettes as a symbol of masculinity and sophistication further reinforces their appeal to this demographic, fostering a sense of identity and belonging within male smoker communities. Moreover, the availability of a wide range of menthol cigarette brands and variants tailored to different taste preferences and intensity levels caters to the diverse preferences of male smokers, allowing them to choose products that align with their individual preferences and lifestyles.

Breakup by Size:

• King Size
• 100s
• Others
   

King size accounts for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the size. This includes king size, 100s, and others. According to the report, king size represented the largest segment.

The king-size segment in the menthol cigarettes market is driven by several key factors, such as the increasing demand for value and convenience among consumers fuels the growth of this segment. King-size cigarettes offer smokers a longer-lasting smoking experience, providing better value for money compared to standard-sized cigarettes. Additionally, the larger size appeals to heavy smokers who seek a more substantial nicotine hit and prolonged satisfaction from each cigarette. Moreover, the king-size segment is driven by the rising popularity of menthol-flavored cigarettes among young adults and women. Menthol's perceived cooling sensation and smoother smoke experience make it a preferred choice for many smokers, driving demand for menthol variants in larger sizes. Furthermore, the segment benefits from the strategic marketing efforts of tobacco companies, which promote king-size menthol cigarettes through targeted advertising campaigns and product innovations. These companies capitalize on consumer preferences and trends, leveraging the allure of menthol to capture a larger share of the market.

Breakup by Distribution Channel:

• Supermarkets
• Hypermarkets
• Online Retailers
• Others
   

The report has provided a detailed breakup and analysis of the market based on the distribution channel. This includes supermarkets, hypermarkets, online retailers, and others.

The supermarket segment is driven by the increasing consumer demand for convenience, variety, and competitive pricing. Supermarkets offer a one-stop shopping experience, catering to diverse consumer needs with a wide range of products under one roof. The convenience factor, coupled with the availability of fresh produce, packaged goods, and household essentials, attracts busy shoppers looking to streamline their shopping trips. Additionally, supermarkets leverage economies of scale to negotiate favorable pricing with suppliers, allowing them to offer competitive prices and discounts to customers. Furthermore, the proliferation of supermarket chains and the expansion of store networks into suburban and rural areas contribute to market growth, enhancing accessibility for consumers across diverse demographics and geographic regions.

The hypermarket segment is driven by the increasing consumer preference for bulk purchases, value-for-money offerings, and a comprehensive product assortment. Hypermarkets combine the features of supermarkets and department stores, offering a vast selection of groceries, electronics, apparel, and household items under one expansive roof. The appeal of hypermarkets lies in their ability to provide a one-stop shopping destination for consumers seeking convenience and cost savings. By offering bulk discounts, promotional deals, and exclusive private-label brands, hypermarkets attract price-conscious shoppers looking to maximize their purchasing power. Moreover, the spacious layout and ample parking facilities of hypermarkets enhance the shopping experience, allowing customers to browse leisurely and explore a wide range of products in a single visit. The strategic location of hypermarkets in high-traffic areas and their extended operating hours further contribute to their popularity among busy urban consumers seeking convenience and accessibility.

The online retail segment is driven by the increasing adoption of e-commerce platforms, digitalization trends, and shifting consumer shopping behaviors. Online retailers offer unparalleled convenience, allowing consumers to browse, purchase, and receive products from the comfort of their homes or on-the-go via mobile devices. The convenience of doorstep delivery, hassle-free returns, and personalized recommendations enhance the overall shopping experience, driving customer satisfaction and loyalty. Furthermore, the availability of diverse payment options, secure transactions, and advanced logistics infrastructure ensure smooth order fulfillment and timely delivery, fostering trust and confidence among online shoppers.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

Asia Pacific leads the market, accounting for the largest menthol cigarette market share

The market research report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, Asia Pacific accounted for the largest market share.

The Asia Pacific market is driven by the increasing consumer preference for menthol-flavored cigarettes, influenced by cultural norms and smoking traditions prevalent in many countries across the region. Menthol cigarettes are often perceived as offering a smoother smoking experience and a refreshing sensation, aligning well with the preferences of Asian consumers who value sensory satisfaction in their tobacco products. Furthermore, the region's large and diverse population, particularly in countries like China and India, presents a vast market opportunity for menthol cigarette manufacturers to capitalize on. Additionally, the Asia Pacific market is characterized by rapid urbanization and rising disposable incomes, particularly among the middle-class demographic, which further fuels the demand for menthol cigarettes as consumers seek affordable luxury and indulgence. Moreover, the regulatory landscape in the Asia Pacific region, while increasingly stringent in some countries, may still be relatively favorable towards menthol cigarettes compared to Western markets, allowing for continued growth and market penetration.

Competitive Landscape:

• The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the major market players in the menthol cigarette include Alfred Dunhill Ltd, Altria Group, British American Tobacco p.l.c., China National Tobacco Corporation, Commonwealth Brands, Inc., Essentra plc, Imperial Brands PLC, Japan Tobacco Inc., KT&G Corporation, Liggett Vector Brands LLC, Reynolds American Inc, Philip Morris International Inc., etc.
  
  (Please note that this is only a partial list of the key players, and the complete list is provided in the report.)
   
• Key players in the menthol cigarette market are actively engaged in various strategies to maintain their market share and capitalize on emerging opportunities. These companies are continuously innovating their product offerings, introducing new menthol-infused cigarette variants, and enhancing existing formulations to meet evolving consumer preferences and regulatory requirements. Furthermore, key players are expanding their global presence through strategic partnerships, acquisitions, and distribution agreements to gain access to new markets and distribution channels. In response to increasing health concerns and regulatory pressures, some companies are also exploring alternative nicotine delivery systems, including electronic cigarettes and heated tobacco products, to diversify their product portfolios and cater to a broader range of consumer preferences. Moreover, sustainability and corporate social responsibility initiatives are gaining prominence among key players, with efforts focused on reducing environmental impact, improving supply chain transparency, and addressing social issues related to tobacco cultivation and production. 

Menthol Cigarette Market News:

• In 2022: Altria Group entered into a significant agreement with Philip Morris International (PMI) to transfer exclusive U.S. commercialization rights of the IQOS Tobacco Heating System to PMI. This agreement, valued at approximately $2.7 billion, will allow Altria to allocate resources toward their vision of moving beyond smoking.
• In 2024: Philip Morris International announced the global launch of a new menthol variant of its IQOS ILUMA device, which uses induction heating technology for a more consistent tobacco experience without combustion. This product launch is part of PMI's strategy to transition away from combustible cigarettes and provide adult smokers with safer alternatives. PMI's goal is to generate over 50% of its net revenues from RRPs by 2025​.

Menthol Cigarette Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the menthol cigarette market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global menthol cigarette market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the menthol cigarette industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.