The competition on the Swedish market for snuff is getting tougher as newcomers challenge giant tobacco company Swedish Match.

Swedish Match, tobacco producer founded in 1917 by the “Match-king” Ivar Kreuger, is facing harder competition on the Swedish market for snuff as new players enter the stage.

Swedish snus, a moist powder tobacco product that you consume by placing it under the lip, is banned in all EU countries except Sweden. It's also commonly used in Norway and the US.

During April – May Swedish Match’s market share fell 0.7 percent to 86.3 percent compared to the measuring previous period February – March, new figures from research firm AC Nielsen shows.

“This is a trend that’s been going on for some time. I think Swedish Match is worried, but they still have a dominant position”, said Mikael Holm, analyst at Swedbank, to The Swedish Wire.

Meanwhile BAT/Fiedler & Lundgren stepped up its market share from 9.7 percent to 10.4 and Japan Tobacco to 1.5 percent, the business newswire Direkt writes. Imperial Tobacco kept its 1.7 percents market share.

Swedish Match’s General is still the largest brand with more than a quarter of the Swedish market.

While exclusive high-price brands have emerged at the Swedish snuff market, the trend with low-price products increase. Swedish Match’s share of the low-price market was only 53 percent while BAT increased to almost 39 percent.

“Swedish Match has lost ground due to the low-price market where they don’t have the same dominance as with premium products”, said Mikael Holm who believes that the prices are about to go up.

“This is a market with low elasticity. It’s possible to raise prices without losing market shares. If Swedish match increase the price tag on low-price products the competitors are likely to follow”.

During this year’s first quarter Swedish Match increased its sales with 25 percent and operating profit was up 55 percent to 846 million kronor (€80 million). Almost half of the profit came from snuff sold in Sweden, Norway and the US.

“The total market in the US is growing and Swedish Match is taking market shares. In the US they are challengers”, Mikael Holm said.