Roll-Your-Own (RYO) Tobacco Product Market Trends [2031]

Report Description

Roll-Your-Own (RYO) Tobacco Product Market Outlook 2031

The global roll-your-own (RYO) tobacco product market size was USD 31 Billion in 2022 and is likely to reach USD 44 Billion by 2031, expanding at a CAGR of 4% during 2023–2031. The market growth is attributed to the rising use of tobacco products among the younger generation.

High demand for tobacco-based products is anticipated to drive the market during the assessment period. Factors such as lower prices, better taste, and fewer adverse effects are making roll-your-own tobacco products more popular than industry-manufactured cigarettes. Additionally, individuals reported hand-rolled cigarettes to be highly customizable. This trend is especially evident in the millennial and genZ demographics.

• According to a December 2022 report published by Oxford Academic, this market is fairly niche. However, it is gaining significant momentum worldwide, especially in Europe and North America. Roll-your-own tobacco products are generally popular among young males (between the age group of 18-35 years) residing in deprived areas.

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The COVID-19 pandemic hindered the market as a result of the interrupted supply of tobacco. The global lockdown disrupted the supply chain of tobacco products. Additionally, tobacco consumption severely affects the lung performance, which led to a significant decline in the demand for tobacco and tobacco-based products during this period.

However, this negative impact was relatively short-lived. According to an October 2021 report published by the National Institutes of Health (NIH), by the end of 2020, the tobacco industry was already achieving profits.

Impact of Artificial Intelligence (AI) in Roll-Your-Own (RYO) Tobacco Product Market

Growing use of Artificial Intelligence (AI) is projected to streamline the market considerably. AI and Machine Learning are used to gather datasets from different demographics of society and customize products suited to their needs. It is used to provide accurate information about health regulations and the potential dangers of tobacco products.

For instance, Tobacco Titan by GenAI is one such AI-powered language model that is used to collect information gathered through existing datasets. This information is highly confidential and is only shared with the tobacco companies. 

Roll-Your-Own (RYO) Tobacco Product Market Dynamics

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Drivers

Growing demand for tobacco is projected to boost the market during the forecast period. Roll-your-own tobacco products are gaining momentum, owing to their relatively reasonable cost and few health risks. This is especially relevant among the young, disadvantaged youth. According to a July 2021 report published by NIH, young people believe that rolling tobacco products are more organic and less addictive as compared to traditional cigarettes.

Restraints

Easy availability of commercially manufactured cigarettes is expected to hinder the market over the coming years. Large-scale tobacco businesses that produce cigarettes dominate the market. These companies have a well-developed supply chain mechanism, hence, commercial cigarettes are much more readily available as compared to roll-your-own tobacco products. As a result, they get more customer exposure in comparison to the customizable options and are likely to restrain the market in the coming years.

Emerging Opportunities

Growing availability of datasets regarding demographics and the consumer base is projected to drive the market considerably. The ready availability of consumer data is anticipated to lead to the production of customized tobacco products. Various tobacco companies are turning to “heat not burn” technologies that heat the tobacco enough without burning it, due to the growing concerns of health and fitness. This technology is expected to minimize lung damage caused by smoking, which creates profitable prospects for the market growth.

Scope of the Roll-Your-Own (RYO) Tobacco Product Market Report

The market report includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Roll-Your-Own (RYO) Tobacco Product Market Segment Insights

Product Segment Analysis

Based on product, the roll-your-own tobacco product market is divided into tobacco products, rolling papers & tubes, tobacco injectors, and tobacco filters & tips. The tobacco products segment is expected to dominate the market during the projection period, owing to the belief that hand-rolled cigarettes have fewer adverse effects as compared to industry-manufactured cigarettes.

There is a rise in the narrative that hand-rolled tobacco is more organic and is not as addictive as regular cigarettes. This narrative is especially strong amongst the youth. Thus, a growing number of teenagers and young adults are turning to hand-rolled cigarettes over commercially manufactured ones.

The rolling paper & tubes segment is projected to expand at a high CAGR over the coming years owing to their affordable prices and ready availability. Additionally, the increasing accessibility to organic and flavored filters is drawing in a large consumer base from the younger demographics, which is projected to drive the market considerably over the forecast period.

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Distribution Channel Segment Analysis

On the basis of distribution channel, the global market is segregated into online and offline. The online segment is projected to dominate the market during the forecast period, owing to the convenient availability of tobacco-based products at attractive discounts and the facility of home delivery. Roll-your-own tobacco products are now easily accessible at significantly affordable prices, due to considerable improvements in supply chain management.

An increasing number of industries have grown their online presence considerably by digitizing the sale of products and services as well as promoting online advertising. The tobacco industry is also expected to follow this trend, thus propelling the segment.

Regional Outlook

In terms of region, the global roll-your-own tobacco product market is classified as Asia Pacific, North America, Latin America, Europe, and the Middle East & Africa. Europe is expected to dominate the market during the projection period, owing to the growing appeal of roll-your-own cigarettes in the region.

Low taxation on roll-your-own tobacco in most countries in Europe is boosting the demand for these products among lower-income households. According to a September 2020 report by the European Journal of Public Health, roll-your-own cigarettes are the second most popular means of tobacco intake, only preceded by factory-manufactured cigarettes.

The market in Asia Pacific is projected to expand at a considerable CAGR over the coming years, owing to the easy availability of tobacco. A large number of individuals in Asia Pacific is turning to hand-rolled cigarettes, due to the lack of government regulations in the production and distribution of tobacco. According to a February 2023 journal report published by Wiley, China and India accounted for a massive 49% of tobacco production in Asia Pacific in 2020.

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