A report titled “Global Heat-not-burn Tobacco Product Market” іѕ rесеntlу рublіѕhеd bу Eternal Markets. Тhе mаrkеt hаѕ bееn ѕеgmеntеd оn thе bаѕіѕ оf component, distribution channel, end-user, rеgіоnѕ аnd соuntrіеѕ. Rеvеnuе frоm thе glоbаl heat-not-burn tobacco product mаrkеt іѕ рrојесtеd tо rеасh а vаluе оf UЅ$ 54,436.5 Мn іn 2032 with a robust CAGR of 24.5% over the forecast period 2023-2032.
Industry Overview:
With the launch of newer products in the market such as electronic cigarettes there is a rise popularity of cigarettes smoking in various countries. This led to increasing interest in creating nicotine products which cause less harm than traditional cigarettes and gave rise to development of products such as “Heat-not-burn tobacco” products which are considered as evolution of traditional cigarettes. Additives are added to tobacco and the end mixture is burnt; the resulting combustion reaction releases a set of chemicals which affects the lungs and cause cardiovascular problems.
Market Dynamics:
Recent clinical trials conducted in various institutes has suggested that heat not burn tobacco devices provide similar recreational pleasure to the users and are an effective replacement of traditional cigarettes. Studies have shown that smoking impeded the functioning of lungs and hence people who are regular smokers fall in the high-risk category that may get infected easily with various viruses such as Corona, etc.
Moreover, in emerging economies such as China, the demand market for traditional cigarettes is becoming stagnant with the rise of older population which is expected to create lucrative opportunities for the market players in the coming years. The trend in innovative marketing strategies have been adopted by various companies to create consumer awareness and increase the consumption of heat-not-burn tobacco products.
The latest generation of HTP not only targets specific market segments of tobacco users, but also adopts non-traditional marketing and product distribution strategies. The marketing strategies used by tobacco companies to attract customers and increase sales include the following:
- It is scientifically not proved to reduce consumers’ health concerns by claiming that HTP is a risk-reducing product.
- Design HTP to fulfill the role of cigarettes in order to improve the user’s social image. For instance, iQOS offers different colors, limited edition designs, and increases consumer convenience by reducing odour, fast charging, and similar functions.
- Set up special retail stores to display and sell HTP brands (such as iQOS, glo), and provide call center support for consumers.
- Adopting a “bait and hook” pricing strategy, usually selling basic equipment (such as iQOS basic equipment and charging stations) at discounted prices, and charging recurring prices for refills (such as HeatSticks). Through repeated purchases, the initial conversion cost and life cycle value of consumers have been increased, thereby increasing the customer retention rate.
Industry Developments:
Year 2020: British American Tobacco p.l.c. announces that the US business of the BAT Group (BAT) has acquired the nicotine pouch product assets of Dryft Sciences, LLC (Dryft), a US-based Modern Oral nicotine product company.
Year 2019: JT launches a new flavor of tobacco sticks for Ploom S: “MEVIUS Menthol Purple for Ploom S”.
Year 2019: Imperial Brands PLC Diversifies Next Generation Product Portfolio to Provide Further Options for Future Growth.
Major Strategies adopted by key market players:
- Agreements, Collaborations, and Partnerships: 35%
- Acquisitions: 13%
- New Service Launch: _%
- Other Developments: _%
Scope of the Report:
Global Heat-not-burn Tobacco Product Market, by Type
- Tobacco Sticks
- Heating Module
- Other Accessories
Global Heat-not-burn Tobacco Product Market, by Distribution Channel
- Specialty Store
- Supermarket
- e-Commerce
Global Heat-not-burn Tobacco Product Market, by End User
- Men
- Women
Global Heat-not-burn Tobacco Product Market, by Geography
- North America
- U.S
- Canada
- Europe
- Germany
- UK
- France
- Italy
- Spain
- Russia
- Rest of Europe (RoE)
- Asia-Pacific (APAC)
- China
- Japan
- India
- Rest of APAC (RoAPAC)
- South America
- Brazil
- Argentina
- Rest of South America
- Middle East & Africa
- GCC
- Israel
- South Africa
- Rest of MEA
Competitors landscape:
- Altria Group Inc.
- British American Tobacco Plc
- Fog and Frog Technology (Shenzhen) Co. Ltd
- Imperial Brands Pl
- Japan Tobacco Inc.
- KT and G Corp.
- Mysmok Electronic Technology Co. Ltd.
- Philip Morris International Inc.
- Shenzhen Yukan Technology Co. Ltd
- VMR Products
- Other Companies