Synthetic Nicotine Market Outlook
The global synthetic nicotine market size was valued at USD 562.7 Million in 2020 and is projected to reach USD 2,984.9 Million by 2028, expanding at a CAGR of 23.4% during the forecast period, 2021-2028. Synthetic nicotine, also known as "tobacco-free nicotine," is a chemical version of nicotine made by the human hand, not from tobacco. Synthetic nicotine products were not made from tobacco leaves in the laboratory.
Synthetic nicotine has been available since 2016 and its popularity has grown recently. It has the same chemical structure as tobacco nicotine (C10 H14 N2 or 10 carbon atoms, 14 hydrogen atoms, and 2 nitrogen atoms). It is designed to mimic the positive and negative effects of natural nicotine.
At least for small vapor-breathing companies in the vapor-breathing market, synthetic nicotine has the potential to pave the way for the future. The e-cigarette industry may be able to obtain FDA approval for the production of disposable items containing synthetic nicotine.
Synthetic Nicotine Market Dynamics
The growing acceptance of synthetic nicotine is the primary factor driving market growth and development. Despite occupying a niche in comparison to tobacco-derived nicotine (TDN), the synthetic nicotine (SN) phase has expanded in recent years. Next Generation Labs (NGL), a California-based producer of bulk R, R-S, and S nontobacco-derived nicotine-based, recently announced a doubling of its annual production capacity to meet rising demand.
Demand for TNF products is increasing in the United States and South Korea due to orders from manufacturers of steam products and device cartridge fillers. The combination of these factors is expected to drive the market over the forecast period.
Increasing users for E-cigarette. E-cigarettes are gaining popularity among people trying to quit smoking. Puff Bar Disposable E-cigarette and Oral Nicotine Products NIIN, Bidi Pouches, and Rush are just a few of the new products on the market that promote synthetic or laboratory-made non-tobacco nicotine and drive the growth of the orthokeratology lens market.
In addition, communities that allow the sale of such products near schools have higher tobacco consumption rates among young people. This increases the importance of e-cigarette that is expected to market during the forecast period.
With the increasing use of smartphones, laptops, and tablets by children and adults, the risk of eye Oral nicotine pouches, whether synthetic or natural, are becoming increasingly popular among the youth population for vaping. Both vaping and smoking are delivered ultrafine particles, volatile organic compounds, and other cancer-causing chemicals in addition to synthetic nicotine.
Increasing use of synthetic nicotine in medical applications. All forms of NRT (transdermal patches, chewing gum, nasal drops, inhalers, and sublingual / troche tablets) on the market increase the chances of successful smoking cessation. A nicotine patch is a device that delivers nicotine through the skin into the bloodstream. It is used to help smokers avoid nicotine cravings.
Increasing the use of synthetic nicotine in all medical applications such as transdermal patches, dietary supplements, gums, nasal drops, and inhalers is expected to drive the synthetic nicotine market in the future. Synthetic nicotine, production, and raw materials are all becoming more expensive.
As a result, the high cost of producing synthetic nicotine is one of the major factors that may impede market growth over the forecast period. The main disadvantage of synthetic nicotine is its high production cost. Furthermore, longer production times, more labor-intensive production methods, and the need for higher-priced raw materials all add to the price.
Furthermore, strict regulations governing the safety of people exposed to hazardous chemicals and biological agents are expected to impede the market growth. As a result, these factors are limiting market growth at a specific time.
The increasing adoption of multi-channel presence by key industries such as NGL, NIIN, and Chemnovatic is expected to provide opportunities for growth and customer expansion. Online platforms and e-commerce channels help a company's growth and revenue generation. Processors are collaborating with retailers to distribute their products and increase their consumer base.
Many businesses are increasing their use of synthetic nicotine. For example, the NGL company continues to expand its collaborations with device manufacturers such as Vapeix, which provides dedicated open and closed system devices for use with synthetic and nicotine-free e-liquids, which is expected to drive synthetic nicotine growth during the forecast period.
Synthetic Nicotine Market Segment Insights
Purity Type Segment Analysis
Based on purity type, the Global Synthetic Nicotine Market is segmented into >99.5% purity, >99% purity segment. The >99.5% purity segment is anticipated to hold a substantial share of the market and is expected to grow at a substantial CAGR during the forecast period. It is of the highest quality and the unencoded nicotine solution in tobacco is more than 99.5% pure and therefore exceeds the nicotine requirements of pharmaceuticals.
Applications Segment Analysis
Based on application, the Global Synthetic Nicotine Sales market is segmented into e-cigarettes, drugs, and others. The e-cigarettes segment is anticipated to hold a significant share of the market and is expected to grow at a substantial CAGR during the forecast period.
Owing to the primary driver of segment growth is the teen population's increasing preference for e-cigarettes. Disposable e-cigarettes and nicotine gum from Puff Bar NIIN, Bidi Pouches, and Rush are just a few of the new synthetic nicotine products on the market.
Distribution Channels Segment Analysis
Based on Distribution Channels, the Global Synthetic Nicotine Sales Market is segmented into Online and Offline. The offline segment is expected to hold a significant share of the market, due to Offline sales dominating the global market. Furthermore, manufacturers are forming alliances with regional distributors to establish a strong supply and distribution chain.
Synthetic Nicotine Market Regional Analysis
Based on regions, the global synthetic nicotine market is separated into North America, Asia Pacific, Europe, Latin America, and Middle East & Africa. North America accounted for a substantial share of the market in 2020 and is anticipated to expand at a high CAGR in the forecast period of 2021 to 2028.
Due to the growing demand for young people, synthetic nicotine in E-cigarettes or "vaping" is gaining popularity as an alternative to cigarette smoking. The market is expected to grow due to increased supply chain advancement and the rising prevalence of smoking addiction in the region.
The market in Europe and Asia Pacific is predicted to hold a sizeable share of the market during the forecast period, owing to the expansion of the pharmaceutical industry and the rise of electronic, strong market players in the synthetic nicotine market, which is driving the market in the region.
Growing synthetic nicotine manufacturing plants in the laboratory, rising consumer preference for alternative smoking such as e-cigarettes, vaping, and smokeless smoking, and rising demand for synthetic nicotine in China and India, and expanding at a considerable CAGR during the forecast period.
Key Benefits for Industry Participants & Stakeholders
- In-depth Analysis of the synthetic nicotine Market.
- Historical, Current, and Projected Market Size in terms of Value.
- Potential & Niche Segments and Regions Exhibiting Promising Growth Covered
- Industry Drivers, Restraints, and Opportunities Covered in the Study
- Recent Industry Trends and Developments
- Competitive Landscape & Strategies of Key Players
- Neutral Perspective on global synthetic nicotine Market Performance
- North America
- Latin America
- Rest of Latin America
- Rest of Europe
- Asia Pacific
- South Korea
- South East Asia (SEA)
- Rest of Asia Pacific (APAC)
- Middle East & Africa (MEA)
- Saudi Arabia
- South Africa
- Rest of Middle East & Africa (MEA)
Key Market Players Profiled in the Report
Next Generation Labs LLC, Chemnovatic, Hangsen International Group Ltd., Zanoprima Lifesciences, Nudenicotine, Hubei Heno Biological Engineering Co., Ltd., and NIIN LLC. These players are key manufacturers in the global synthetic nicotine market.
To increase demand for synthetic nicotine product applications, the players are implementing key strategies such as product development, mergers and acquisitions, geographical expansion.