The Future of Inhalation

Delivery

This report comes in PPT.

Key Findings

High value but in a narrow, vulnerable space

Inhalation is a long-established, ubiquitous delivery mechanism with a total market of close to USD1 trillion. However, the majority of this value derives from the cigarettes category which is under existential threat with other uses, such as medicinal, currently smaller and more focused.

Potential to capture share of new occasions and needs

The benefits of inhalation - fast, effective delivery - mean that future iterations of these products could compete for consumption moments that they currently do not address, including energy, pain relief and functional wellness.

Stakeholders must balance competing drivers

There are several competing dynamics that are at the core of inhalation’s evolution, such as the need to maximise efficacy and satisfaction while minimising health impact. Brand owners must prepare to navigate these tensions through innovation, communications and informed positioning.

Evolution of regulation central to inhalation’s fate

Due to inhalation’s controversial history and the fact that it will continue to be used to deliver functional substances, regulation (and its enforcement) sits at the heart of its prospects and place in society and will determine its prevalence, character and the ongoing levels of illicit use.

But innovation will be a key defensive and growth lever

The key counterbalancing force for inhalation stakeholders will be innovation, which has already created viable alternatives to the cigarette and which will need to mitigate public and regulatory concerns while maximising appeal to existing and new inhalation consumers.