Nicotine Replacement Therapy (NRT) Market Size, Share & COVID-19 Impact Analysis, By Type (Gums, Patches, Lozenges, Inhalers, and Others), By Distribution Channel (Hospital Pharmacy, Retail Pharmacy, and Online Pharmacy), and Regional Forecast, 2020-2027

The global nicotine replacement therapy (NRT) market size was valued at USD 2.55 billion in 2019 and is projected to reach USD 3.54 billion by 2027, exhibiting a CAGR of 4.2% during the forecast period.

According to the World Health Organization (WHO), tobacco is responsible for the death of more than 8 million people every year and is the second leading cause of global cancer deaths. This is an underlying burden on the healthcare industry to save millions of people. Therefore, to reduce tobacco consumption and help smokers get rid of the urge to smoke, nicotine replacement therapy was approved by the U.S FDA by introducing products such as nicotine gums, patches, lozenges, and others. Since then, pharmaceutical giants GlaxoSmithKline and Johnson & Johnson are actively supplying products to the world.

Nicotine products have been effective in helping people quit smoking and thus are widely used by strugglers who are trying to quit smoking. Moreover, the launch of awareness campaigns worldwide about the health benefits of quitting smoking has leveraged the market potential by influencing more population towards the prohibition of smoking.

Anti-Smoking Awareness Programs Amid COVID-19 to Aid Growth

COVID-19 is a respiratory disease prone to affect millions of people with low immunity levels. For preventive measures, health organizations such as WHO, CDC, and others have advised smokers to quit smoking. As smoking damages the lungs, it makes the person more vulnerable to the COVID-19 disease. This was proactively supported by Cipla Health Limited by initiating a campaign in April 2020 known as ‘21 Days to Quit Smoking Challenge’ by introducing them to the Nicotex gum NRT product.

In May 2020, at the World Health Assembly, many countries showed efforts in banning the sales of tobacco products as it affects the lungs making people vulnerable to the infection. This has eventually led to the increased awareness amongst the population to the nicotine replacement therapy market and its adoption. Therefore, over the coming year marking modest growth rate, the global market will witness considerable growth during the forecast period.

LATEST TRENDS

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Introduction of Smartphone Apps, and Behavioral Techniques to Drive the Market Growth

To help the smokers in smoking cessation, many companies and doctors are focused on the introduction of novel ways to tackle the problem. The latest trend in smoking cessation is the introduction of smartphone apps such as Cessation Nation, MyQuit Coach, QuitNow, SmokeFree, and many others. These apps are helping smokers in tracking their daily habits, providing tips on non-smoking, and connecting them with communities that help in quitting smoking. Moreover, many researchers are investigating ways to look into the smoker’s mind and help them quit smoking. According to the study by Westmass, engaging the population in activities that are ‘self-expanding’ can help them get rid of nicotine cravings. Such progressive trends in the nicotine industry are likely to increase the adoption rate of NRT products during the forecast period.

DRIVING FACTORS

Increasing Government/International Organizations Efforts to Promote Anti-Smoking Activities to Fuel Demand

According to the Union of International Cancer Control (UICC), tobacco consumption is anticipated to kill a billion people in the 21^st century. Tobacco consumption is the second leading cause of 22% of global cancer deaths. Such a fearful situation has helped various organizations around the world to come up with awareness campaigns and various initiatives. For instance, 31^st May every year is marked as World No Tobacco Day globally, to raise awareness among the population about the health hazards of tobacco consumption and the adoption of NRT products. Additionally, in July 2017 according to WHO, more than 2 million people enrolled in the Quit Smoking program of India in a year by adopting NRT products. Owing to initiatives by government and other organizations, growing population towards anti-smoking is likely to grab them to higher adoption of NRT products thus increasing its demand and sales.

Launch of Innovative Products to Propel Market Growth

Owing to increased burden in minimizing the number of smokers, pharmaceutical giants are focused on introduction of innovative and effective nicotine replacement therapy products. This is likely to boost the global market value by propelling higher sales and adoption. For instance, in May 2017, Glenmark Pharmaceuticals announced the launch of Kwitz, a product that helps smokers in smoking cessation within three months. Additionally, in May 2017, Cipla Health Limited launched Nicotex Nicotine Patch, as a Nicotine replacement therapy product. The transdermal patch helps in reducing the urge to smoke in smokers. Therefore, constant product launches by major companies are likely to contribute to the generation of higher market revenue during the forecast period.

RESTRAINING FACTORS

Myths Surrounding NRT to Limit Product Adoption

Inspite of the tremendous awareness about the harmful effects of smoking through awareness campaigns, television ads, flyers, and others, the rate of people willing to quit smoking is lower. According to the data from Centers for Disease Control & Prevention (CDC) in 2018, although 55.1% of the adult made a quit attempt only 7.5% of them successfully discontinued smoking. Moreover, the launch of effective NRT products and awareness among the population still leads to the lesser adoption of products. As per a research study conducted by World Health Organization (WHO), there are misconceptions in the population about the NRT products. These include that the products cannot reduce smoking habit, are not effective, have side-effects, and are expensive. Therefore, due to the circulating myths about the products, it has lowered the adoption rate eventually leading to lower sales.

SEGMENTATION

By Type Analysis

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Gums to Grow at Faster Pace

Based on product type, the market for nicotine replacement therapy is classified into gums, patches, lozenges, inhalers, and others. Gums dominated the product type segment in 2019 accounting for the highest market share. The factor attributable to the dominance is higher sales of nicotine gums. Nicotine gums are available over-the-counter without a prescription and help reduce nicotine cravings. Therefore, as the gums are easily available they are highly preferred subsequently increasing the sales of the product. For example, in May 2018, Cipla’s Nicotex announced the partnership with BEST (Brihanmumbai Electricity Supply and Transport Undertaking) on the World’s No Tobacco Day. The partnership has enabled Nicotex to train a large number of doctors, nurses, and pharmacies to spread awareness on the right dosage of NRT products to help quit tobacco by the BEST employees and passengers.

 Nicotine patches hold the second position in the market owing to its effectiveness in reducing the urge to smoke. Manufacturers are highly focused on introducing nicotine patches which are likely to boost the sales of the NRT products. Moreover, NRT products such as lozenges, inhalers, and sprays are useful in prohibiting smoking. Therefore, rising awareness among the population is anticipated to increase the sales of the product during the forecast period.

By Distribution Channel Analysis

Retail Pharmacies to Register a Higher CAGR

In terms of the distribution channel, the market is segmented into hospital pharmacy, retail pharmacy, and online pharmacy.

The hospital pharmacy is expected to have a dominant share in the market during the forecast period. The dominance is attributable to an increase in hospital stays of patients suffering from chronic diseases such as cancer, lung cancer, respiratory disease, strokes, etc., due to excessive smoking habits. This has led to increased sales of NRT products to spread awareness about the importance of prohibiting smoking.

During the forecast period, retail pharmacies are expected to emerge as the fastest-growing segment owing to the smokers’ preference in purchasing NRT products from the nearby retail stores. Additionally, the issuance of guidelines to the pharmacies by the government is anticipated to contribute to driving the population towards adoption of NRT products. For instance, National Institute of Health and Clinical Excellence (NHS) of England has drafted guidelines for pharmacists to help smokers quit tobacco smoking.

REGIONAL INSIGHTS

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Regionally, the nicotine replacement therapy market is fragmented by North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

North America and Europe together account for the majority share of the market at about 80%. The market size in North America stood at USD 1.18 billion in 2019. The dominance of this region is attributable to the highest retail sales of NRT products in U.S and Canada. The rate of smokers that are practicing prohibition of smoking is increasing in the region, and hence the demand for NRT products such as gums, inhalers, etc., is higher. Additionally, smoking cessation rates in the U.S are higher than in other countries, which have led to the increasing sales of NRT products. According to the Center of Disease Control & Prevention (CDC) survey, approximately 68% of the U.S population has decided to quit smoking. Therefore, this is anticipated to raise the sales of the products in the coming years. Moreover, gums are dominantly used in the U.S to get rid of smoking than other products in the market.

The market in Europe holds the second position owing to the growing sales of products in European countries such as the U.K, Germany, etc. Furthermore, the government in the region is strongly focused on implementing initiatives for ‘quit smoking’. For instance, the government of the U.K is keen on spreading awareness among the population by regularly updating articles about the benefits of quitting smoking on its portal.

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The market in the Asia Pacific is expected to exhibit healthy growth owing to the growing awareness among the population about the side effects of smoking coupled with robust government support in prohibiting tobacco consumption in the region. For instance, the Times of India published an article in March 2020 about ‘Quit Smoking’ wherein the awareness regarding NRT products was also stated. Latin America & the Middle East & Africa accounted for a comparatively lower share owing to the presence of a huge untapped market for the NRT products and lesser awareness about the importance of quitting tobacco consumption.

KEY INDUSTRY PLAYERS

The global market for nicotine replacement therapy is a conserved market by having two leading players GlaxoSmithKline and Johnson & Johnson Inc. accounting for approximately 80% of the share. GSK’s vast portfolio of NRT products such as NicoDerm CQ Patch, Nicorette Gum, Lozenges available in various dosages and flavors have contributed to the dominance. GSK’s strong distribution channel and reliable brand presence among the population have led to its higher revenue generation. J&J having products such as sprays, gums, inhalers, and the patch is also the leading player in the market.

Other players such as Pfizer, Perrigo Company plc, and Cipla have considerable shares in the global market. Launching campaigns to stop smoking and raising awareness about the adoption of NRT products by the companies is helping in increasing their sales. Therefore, leveraging the market value.

LIST OF KEY COMPANIES PROFILED:

• GlaxoSmithKline plc (U.K, Europe)


• Johnson & Johnson Inc (New Jersey, U.S)


• Perrigo Company plc (Ireland, Europe)


• Pierre Fabre SA, Laboratories (France, Europe)


• Pfizer Inc. (New York, United States)


• Cipla Limited (Mumbai, India)


• British American Tobacco Plc (U.K, Europe)


• Other Players

KEY INDUSTRY DEVELOPMENTS:

• May 2020 – Cipla Health’s smoking cessation brand Nicotex announced the collaboration with Karnataka and Goa governments to provide nicotine replacement therapy to the frontline workers.


• July 2019 - PL Developments expanded its NRT space by collaborating with Teva’s U.S OTC products.

REPORT COVERAGE

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The nicotine replacement therapy market research report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and leading applications of the product. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the advanced market over recent years.

Report Scope & Segmentation