Nicotine Replacement Therapy Market Profile
The global nicotine replacement therapy market was valued at $44.2 billion in 2022, according to Grand View Research. This market has grown in recent years due to heightened awareness about the dangers of smoking. In the US, for example, the Centers for Disease Control and Prevention reported in November 2019 that smoking has reached an all-time low, with just 13.7% of the population smoking cigarettes (that number was 20.9% in 2005). People are increasingly turning to devices like electronic cigarettes and other therapies to help wean them off cigarettes.
Though there are now hundreds of companies selling these products, the leading nicotine replacement therapy market players include US-based companies DuraSmoke, Vapor Group Inc., and Victory Electronic Cigarettes Corp.; UK-based companies Imperial Brands and Nicocigs Ltd.; Japan-based company Japan Tobacco; and India-based company Glenmark Pharmaceuticals.
The nicotine replacement therapy market is expected to reach a value of $147.9 billion by 2028. That amounts to an over 230% increase in value in the next seven years. The report predicts that the market will expand at a compound annual growth rate (CAGR) of 16.3% from 2021 to 2028, which is a significant number.
Reasons for Growth
This projected market growth is based on a number of factors, like the continuation of a broad turn away from smoking. The use of ecigarettes to stop smoking, for example, increased to 20% in 2018 from 13% in 2016 among people aged 45 to 54 years, according to the report. The report also draws on research that shows 5% to 9% of smokers tend to use nicotine patches even after they finish the therapeutic period of 12 weeks. Demand for these therapies is expected to continue due to their relatively high success rates.
Furthermore, nicotine replacement therapy market expansion will be driven by technological advancement among major players. “The [ecigarette] market is changing with newer innovations that are more efficient, have a longer battery life, and are rechargeable,” explains the report. The report also references the development of “sleek and easy-to-use, socially acceptable” ecigarettes — like those developed by Juul and MYLÉ — which have, in the words of the report, brought about a “revolution.” Though it has faced some difficulties in terms of market regulations, Juul is still valued at over $10 billion.
About the Author
Jemima is a journalist who enjoys reporting on business, particularly small business and entrepreneurship.