Nicotine Replacement Therapy Market Size, Share, Trends, Growth and Forecast 2028

Industry Perspective:

The nicotine replacement therapy market size was worth USD 44.5 billion in 2021 and is estimated to grow to USD 103.4 billion by 2028, with a compound annual growth rate (CAGR) of approximately 15.1% over the forecast period. The report analyzes the nicotine replacement therapy market's drivers, restraints/challenges, and their effect on the demands during the projection period. In addition, the report explores emerging opportunities in the nicotine replacement therapy market.

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Nicotine Replacement Therapy Market: Overview

The use of nicotine patches, inhalers, gums, sprays, and lozenges by smokers that are free of the harmful substances found in tobacco is known as nicotine replacement therapy. Nicotine replacement therapy involves drugs that supply nicotine at a low dose as opposed to smoking, which contains a large amount of nicotine and consequently leads to lung cancer, asthma, and other chronic issues. By reducing or eliminating tobacco use, nicotine replacement treatment lowers the frequency and potency of cravings. Technological improvements and the rise in nicotine replacement treatment (NRT) use encourage the practice of nicotine replacement therapy. Growing public awareness of smoking's harmful effects is a major market driver. The number of smokers is increasing and has topped 1.1 billion individuals worldwide. People are choosing smoking cessation therapies as a result of government measures, including the "affordable care act," insurance rules, and campaigns to raise knowledge of the harmful effects of smoking on health through counseling. More people have been moving to cutting-edge goods due to ongoing technological developments in the field of nicotine replacement therapy. NRT adoption is anticipated to be sped up by innovations like heat-not-burn products, sweetened chewing gum, and lozenges. However, one of the most significant barriers to the market's expansion is the ban on e-cigarettes.

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COVID-19 Impact:

The COVID-19 outbreak has somewhat impacted sales of NRT products. Health agencies like WHO, CDC, and others have recommended smokers give up smoking as a preventive precaution. The lungs are harmed by cigarette smoke, which increases a person's susceptibility to COVID-19. Higher product uptake can be attributed to the populace's growing understanding of the negative consequences of tobacco smoke. The restriction on online sales and the elimination of the ability for consumers to purchase NRT products was first enforced in France. This was mostly done to stop people from stockpiling goods after hearing that nicotine can help fight the COVID-19 virus. The global market will therefore experience significant expansion over the upcoming year, marking a modest growth rate.

Key Insights

• The global nicotine replacement therapy market is expected to grow at a CAGR of 15.1% over the forecast period. 
• In terms of revenue, the global nicotine replacement therapy market size was valued at around USD 23.10 million in 2021 and is projected to reach USD 84.38 million by 2028. 
• One major factor driving the growth of the global market for nicotine replacement therapy is the rising awareness against smoking worldwide.
• In 2021, the offline segment's revenue share was 83.9%, which was the highest.
• In 2021, e-cigarettes had the biggest market share of 52.1%.
• North America held a considerable market share in 2021.

Nicotine Replacement Therapy Market: Growth Drivers

Growing understanding of the adverse effects of smoking is driving the market growth

Growing public knowledge of smoking's detrimental consequences is anticipated to be a key market driver. Over 1.1 billion people smoke around the world. Government programs like the "affordable care act," insurance requirements, and campaigns to increase knowledge of the detrimental effects of smoking on health through counseling are all contributing to the rise in the use of nicotine replacement therapies. Favorable reimbursement policies will also accelerate the global nicotine replacement therapy market's expansion.

Nicotine Replacement Therapy Market: Restraints

Myths about NRT that suppress product adoption restraints the market demand

The number of persons who want to stop smoking is decreased despite the widespread understanding of the negative effects of smoking spread via awareness programs, television advertisements, fliers, and other means. Additionally, product uptake remains low despite the introduction of successful NRT treatments and increased public awareness. According to a study by the World Health Organization (WHO), there are myths concerning these products. These include the products' inability to stop smoking, ineffectiveness, adverse effects, and high cost. As a result, the fallacies currently spreading about the items have reduced their adoption rate, resulting in lower sales.

Nicotine Replacement Therapy Market: Opportunity

Technological progress is boosting opportunities in the market

People are switching to more advanced goods due to ongoing technological advancements in the market for nicotine replacement therapy. It is predicted that innovations like heat-not-burn products, flavored chewing gum, and lozenges would help NRT become more widely accepted. Tobacco industry behemoths like British American Tobacco have created safer, smokeless substitutes. These advancements differ from conventional cigarettes in that they are recognized by society and have a range of effectiveness, encourage consumer adoption, and boost global nicotine replacement therapy market growth. In the upcoming years, this will open up new market prospects. 

Nicotine Replacement Therapy Market: Segmentation

The global nicotine replacement therapy market has been segmented on the basis of product, distribution channels, and region.

Based on product, the worldwide nicotine replacement therapy market is segmented into inhalers, gum, transdermal patches, sublingual tablets, lozenges, e-cigarettes, and heat-not-burn tobacco products. In 2021, e-cigarettes had the most significant market share of 52.1%. The market growth is projected to be further fueled by the growing knowledge that e-cigarettes are safer than traditional cigarettes, particularly among the younger generation. The vendors' wide range of customization options, including temperature control and nicotine doses, is anticipated to help the product demand. Additionally, growing e-cigarette technologies like pod systems and squonk mods have gained popularity and user adoption in recent years.

The worldwide nicotine replacement therapy market is segmented as offline and online based on distribution channels. In 2021, the offline segment's revenue share was 83.9%, which was the highest. The segment growth is supported by the accessibility of NRT items such as transdermal patches, gels, gums, e-cigarettes, and heated tobacco products in retail chains like Walgreens and Walmart Stores, Inc. Additionally, the affiliations between hospitals and these chains help the business expand.

Recent Developments

• In July 2021, Philip Morris International Inc paid USD 813.1 million to acquire Fertin Pharma from private equity firm EQT. Products from Fertin Pharma include chewing gums, tablets, and powders that have pharmacological and nutraceutical uses and aid in the hazardous cessation of cigarette smoking.

Nicotine Replacement Therapy Market: Regional Landscape

North America dominated the nicotine replacement therapy market in 2021

The prevalence of smoking-related ailments and the rise in pro-smoking government measures, along with rising e-cigarette and heated tobacco acceptance, are anticipated to have a beneficial effect on the development of the North American market. This area dominates with the most prominent retail sales of NRT goods in the U.S. and Canada. The number of smokers in the area who adhere to the smoking ban is rising, which has resulted in a more robust demand for products like gum, inhalers, etc. Additionally, the United States has higher smoking cessation rates than other nations, which has resulted in rising sales of these goods. Approximately 68% of Americans have decided to stop smoking, according to a survey conducted by the Centers for Disease Control and Prevention (CDC). As a result, it is projected that this will increase product sales in the years to come. Additionally, gums are more commonly used in the U.S. than other treatments on the market to quit smoking.

Report Scope:

Nicotine Replacement Therapy Market: Competitive Landscape 

• Cipla Inc.
• Pfizer Inc.
• Johnson & Johnson Services
• British American Tobacco p.l.c.
• Philip Morris Products S.A. (Altria Group)
• Imperial Brands
• Glenmark
• Japan Tobacco Inc.

Global Nicotine Replacement Therapy Market is segmented as follows:

By Product  

• Nicotine Replacement Therapy
• E-cigarettes
• Heat-not-burn Tobacco Products

By Distribution Channel

• Offline
• Online

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa