Roll-Your-Own-Tobacco Products Market Growth & Trends

The global roll-your-own-tobacco products market size is expected to reach USD 9.95 billion by 2027, according to a new report by Grand View Research, Inc., expanding at a CAGR of 4.2% from 2020 to 2027. The relatively low price associated with roll-your-own (RYO) tobacco products as compared to factory-made (FM) or packaged cigarettes is expected to be a primary factor driving the market across the globe. RYO tobacco is subject to lower taxes in a large number of nations, resulting in easy access to the product.

These products have gained significant popularity among the financially stressed smokers across the world owing to their low price. In addition, several consumers opt for the product as they believe that RYO cigarettes are less harmful than factory-made (FM) cigarettes. This assumption has been encouraging smokers to shift to RYO from packaged cigarettes.

In terms of product, the filter and paper tip segment is expected to expand at the fastest CAGR of 4.7% from 2020 to 2027. These items are gaining traction among the consumers owing to their capability of reducing the intake of tur and other harmful elements while smoking. Furthermore, introduction of flavored and eco-friendly filters and paper tips has been enhancing the consumer experience and fueling the growth of the segment.

Europe led the market in 2019 with over 55.0% share of the global revenue. Key markets of the region include U.K., Germany, France, Belgium, Netherlands, and Luxembourg. Over the past few years, the number of RYO cigarettes smokers has increased significantly in U.K. due to lower tax, lack of restrictions, and easy accessibility of the product.

Considering the rising concern about the environment among the consumers, competitors of the industry are introducing innovative and natural products and adopting eco-friendly packaging solutions to appeal to the consumers.

Roll-Your-Own-Tobacco Products Market Report Highlights

  • In terms of product, the RYO tobacco segment dominated the market with over 40.0% share of the global revenue in 2019. New product launches in the flavored categories at the global level are expected to boost the segment growth in the near future
  • North America is expected to expand at the fastest CAGR of 4.8% from 2020 to 2027 owing to increasing number of RYO smokers in U.S.
  • By distribution channel, the offline segment dominated the market in 2019 with more than 85.0% share of the global revenue as consumers prefer to purchase from physical stores as they can test the quality of the product before buying
  • The online distribution channel segment is expected to expand at the fastest CAGR of 5.8% from 2020 to 2027. This is attributed to growing popularity of online channels among consumers as convenient shopping platforms, which offer add-on benefits including cashback offers and coupons.