Heated Tobacco Products Market: Global Industry Analysis and Forecast (2024-2030)

Heated Tobacco Products Market Overview:

Heated tobacco products (HTPs) are tobacco products that require the use of an electronic device to heat an insert or pod of compressed tobacco (tobacco insert). Inserts come in Flavors including menthol, vanilla, and a variety of fruit Flavors.

 

The research report encompasses the prevailing trends embraced by major manufacturers in the Heated Tobacco Products HTPs Market, such as the adoption of innovative technologies, government investments in research and development, and a growing emphasis on sustainability. The report also provides detailed information on the competitive landscape, which includes the market position and market share of the key players operating in the HTPs market.

 

Additionally, the report provides an in-depth analysis of the current and future trends in the HTPs market. It also offers a wide-ranging analysis of the key market segments, regional landscape, and value chain of the HTPs market and includes strategic recommendations for the success of the HTPs market. The report provides an overview of the different types of HTPs and their respective product offerings in the market. The information helps to identify the key product segments and understand the market potential in different regions.

 

• The HTP market is currently dominated by three tobacco companies such as Philip Morris International (PMI), Japan Tobacco International (JTI), and British American Tobacco (BAT). The leading brand, iQOS by PMI, is currently sold in over 40 countries.

 

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Heated Tobacco Products Market Dynamics:

Rising Health Concerns to Drive the Growth of Heated Tobacco Products Market

The health risks related to cigarettes are expected to drive the adoption of the heated tobacco Product Market. Cigarette smoking is associated with a heightened risk of lung cancer, heart disease, and numerous other respiratory and cardiovascular health issues while chewing tobacco increases the risk of gum disease and health problems. Rising demand for less harmful alternatives to traditional cigarettes, growing product innovations by manufacturers, and high demand by the young population followed by companies’ initiatives to increase production are factors propelling the growth of Heated Tobacco Products.

 

E-cigarettes and Alternative Tobacco Products Impact Heated Tobacco Market Growth

The rising acceptance of e-cigarettes is expected to restrain the adoption of HTPs and hinder the growth of the market. E-cigarettes do not contain tobacco and consist of relatively lesser amounts of harmful agents than conventional tobacco products. Such benefits are expected to increase the adoption of e-cigarettes and hinder the growth of the global heated tobacco products market.

 

The rising popularity of alternative tobacco products such as E-cigarettes, chewing tobacco, water smoking, dissolvable tobacco, etc is also restraining the Heated Tobacco Products Market. Chewing tobacco is usually a highly fermented and liquored form of tobacco that is designed to be chewed, not smoked. It’s supplied in long strands of very coarsely shredded leaves, or the form of rolls, sticks, strips, cubes, and blocks.

Heated Tobacco Products Market Segment Analysis:

By Product Type, Tobacco sticks, also known as heated tobacco units. The units of tobacco are inserted into a heated tobacco device. The device warms the tobacco unit without combustion, allowing the user to draw on it to enjoy the flavor of heated tobacco. Philip Morris International (PMI) offers a range of tobacco sticks manufactured for exclusive use with each of the heated tobacco holders. Capsule heat sticks are a key innovation for KT&G’s attempt to attain market share for its HTPs in Korea. IQOS heat sticks (HEETS) include a variety of flavors (tobacco, menthol, bubble gum, and lime), and no IQOS heat sticks include capsules. IQOS is authorized by the FDA for sale in the U.S. In January 2023, the FDA authorized three new versions of the HeatSticks in “Sienna,” “Bronze,” and “Amber.

 

• In October 2023, similarly to PMI, BAT announced that it had launched a new non-tobacco stick for glo, called veo, made with Rooibos tea leaves, and infused with nicotine and flavors

Heated Tobacco Products Market Regional Analysis:

North America held the largest share in 2023 of the Heated Tobacco Products Market. Heated Tobacco Products are new in the United States. The U.S. Food and Drug Administration (FDA) has authorized only IQOS and Eclipse heated tobacco products for sale in the country. Sales of other heated tobacco products are growing globally. In 2023, 1.0% of U.S. middle and high school students, combined, reported having used heated tobacco products. 40,000 US adults found that over 8% were aware of HTPs, but only 0.5% using them.

 

• Canada, Belarus, Moldova, and Georgia have legislated to include HTPs within their tobacco control laws so that both cigarettes and heating devices are covered by advertising bans, smoke-free laws, and, for Canada, the plain packaging law

 

HTPs are available in at least 57 countries across Europe, North and South America, Eurasia, and East Asia. The market for HTPs in Africa and the Middle East is small but growing. Asia Pacific is the fastest-growing region in the Heated Tobacco Products Market.  Japan has the highest prevalence of heated tobacco product use and is the country where heated tobacco products have captured the highest share of the tobacco market, allowing us to evaluate the real-world effects of HTPs on the combustible tobacco market. Japan Tobacco decided to spend 300 billion ($2.25 billion) in the next three years to boost its heated tobacco stick products, with 200 billion pegged for marketing the sticks outside of Japan.

 

BAT, PMI, and JTI have used Japan, and to a lesser degree South Korea, as trial markets for their HTPs. Both tobacco markets are dominated by companies that were former state monopolies, Japan Tobacco and Korea Tomorrow & Global Corporation (KT&G), with PMI in second place in both cases. Both had very high smoking rates and a preference for low-tar brands, which may make alternatives more appealing

Heated Tobacco Products Market Competitive Analysis:

1. In 2023, KT&G entered a fifteen-year partnership agreement with PMI to expand its lil HTP line in the global market. PMI is also licensed to market lil SOLID 1.0 and lil SOLID 2.0.
2. In September 2023, PMI announced that it had developed a product for IQOS devices called LEVIA containing “non-tobacco substrate infused with nicotine and tobacco, menthol and fruit flavorings.4960 It appeared that this was developed to circumvent regulations that apply to heat sticks containing tobacco, specifically bans on flavors.

 

Heated Tobacco Products Market Scope:

Heated Tobacco Products Market
Market Size in 2023	USD 24.12 Bn.
Market Size in 2030	USD 455.7 Bn.
CAGR (2024-2030)	52.17 %
Historic Data	2018-2022
Base Year	2023
Forecast Period	2024-2030
Segments	By Product Type           Stick Leaf
	By Distribution Channel Online Retail stores
Regional Scope	North America- United States, Canada, and Mexico Europe – UK, France, Germany, Italy, Spain, Sweden, Russia, and Rest of Europe Asia Pacific – China, India, Japan, South Korea, Australia, ASEAN, Rest of APAC Middle East and Africa - South Africa, GCC, Egypt, Rest of the Middle East and Africa South America – Brazil, Argentina, Rest of South America

 

Heated Tobacco Products Market Key Players:

1. Philip Morris International - United States
2. British American Tobacco - United Kingdom
3. Imperial Brands - United Kingdom
4. Japan Tobacco International - Switzerland
5. Altria Group - United States
6. PMFTC Inc. (Philip Morris Fortune Tobacco Corporation) - Headquarters: Manila, Philippines
7. Korea Tobacco & Ginseng Corporation - South Korea
8. Taiwan Tobacco & Liquor Corporation - Taiwan
9. JUUL Labs - United States
10. PAX Labs - United States
11. Japan Tobacco Inc. - Japan