Heat-Not-Burn Tobacco Products Market Report

The market for heat-not-burn tobacco products is fuelled by rising tobacco product demand and increased awareness regarding the use of no-smoke tobacco products. Also, increased investment in research and development is driving the expansion of the market. The heat-not-burn tobacco products market is fuelled by the continuous decline in traditional cigarette demand and increased preference for potentially reduced-risk products (RRPs). Heat-not-burn tobacco products use convective and radiant heat instead of burning tobacco, as a result, the products contain less nicotine; although the cost-effectiveness of heat-not-burn tobacco products will provide significant growth opportunities to market participants. The market for heat-not-burn tobacco products is expanding as a result of rising cigarette taxes and prohibitions in several countries as well as rising awareness of the harmful side-effects of burning tobacco. The adoption of heat-not-burn tobacco products is anticipated to be influenced by the health risks associated with smoking cigarettes and chewing tobacco, especially among the young population.

Heat-not-burn tobacco products emit nicotine-containing vapour and may be used multiple times, making it popular among youngsters who are unwilling to spend a lot of money on multiple purchases. As a result, heat-not-burn tobacco products can be utilised for a longer duration. Furthermore, technological advancements have resulted in the invention of heat-not-burn tobacco products that produce massive amounts of vapour and are gaining popularity among enthusiasts. Heat-not-burn tobacco products pose a lower risk of harm to smokers who switch to those products than smoking regular cigarettes. Such factors are anticipated to accelerate the use of heat-not-burn tobacco products among individuals. Growing online sales and manufacturer's promotional strategies are expected to drive the heat-not-burn tobacco products market in the coming years. Philip Morris International Inc., for instance, used TV programmes to promote heat-not-burn tobacco products in Japan. Heat-not-burn tobacco products are promoted as a brand and as a reduced-risk product by the company, and the most popular products in the market are BAT's Glo, iQOS, Ploom TECH and iFuse. Moreover, the company's extensive promotional, advertising and research and development activities are boosting the expansion of the market.

• Heat-not-burn tobacco products with enhanced performance and experience.
• High investments in R&D to enhance the performance of heat-not-burn products.
• Heat-not-burn products with a wide range of flavors and nicotine strengths.
• Emphasis on sustainability in the production and disposal of heat-not-burn products.

The increasing popularity of e-cigarettes is anticipated to limit the use of heat-not-burn tobacco products, thus, hampering market growth. Additionally, strict regulations implemented by governments in countries such as Australia, the United States, and Germany have restricted market expansion. Some countries have banned the sale and distribution of tobacco products, which has resulted in a negative impact on the market and has limited the market growth. According to the WHO, heat-not-burn tobacco products contain chemicals that are not found in cigarette smoke and may have health consequences. Furthermore, these compounds are highly volatile and some of the toxic substances identified in their emissions are carcinogens. All these factors are a restriction to the expansion of the heat-not-burn tobacco products market.

To promote heat-not-burn tobacco products, a variety of techniques are used by market players, including claims that it is safer than traditional tobacco smoking, the opening of specialty storefronts, the use of pricing strategies to attract consumers, as well as social media and traditional media. In May 2024, JTI launched its H-n-B Ploom X advanced in Italy. It is the most advanced device and has made its debut in Italy’s travel market and Milan Malpensa Airport in partnership with Avolta. Ploom X was added to Japan Tobacco Inc.'s portfolio in 2021. Imperial Brands plc launched the heat-not-burn tobacco product Pulze in Fukuoka, Japan, in May 2019. Imperial Brands plc's heat-not-burn tobacco products are undergoing consumer testing in Greece and the Czech Republic as of 2023.

Newer heat-not-burn tobacco products include lower and higher temperature variants, carbon-tipped devices, hybrid electronic devices that contain both tobacco and liquid, devices that use a metallic mesh punctured with tiny holes to heat a pre-filled, pre-sealed liquid cap, and others that allow users to customize the temperature and manage the aerosol and flavor output. In addition, other products in this category are in the development stage, including some that are based on novel technology, and all these technological advancements are leading to market growth.

Over the forecast period, Asia-Pacific is expected to maintain its dominance owing to the rise in consumption of IQOS brand heat-not-burn devices in countries such as South Korea and Japan. Additionally, the changing lifestyle and increased disposable income among the people in the region are the factors driving the expansion of the market.  Also, the region has the highest smoking population, which serves as an accelerator in driving demand for heat-not-burn tobacco products in the Asia-Pacific region. Global manufacturers are anticipated to invest in the market for heat-not-burn tobacco products owing to the low risks and high demand. Also, regulatory authorities are approving the sale of heat-not-burn tobacco products in developed economies including North America and Europe, which is expected to be beneficial for market expansion.

For instance, The FDA allowed Philip Morris International Inc. to sell heat-not-burn tobacco products in the United States in 2018. The heat-not-burn tobacco products popularity in Europe has grown due to features such as lower levels of harmful chemicals and tar. Heat-not-burn tobacco products from companies such as Imperial Brands Plc's Blu and British American Tobacco Plc's Vype are being approved by health authorities in the region as a better option for tobacco smoking. Furthermore, increased penetration of manufacturers like Japan Tobacco Inc., British American Tobacco plc, and Philips Morris International Inc. in countries like Poland, Croatia, Italy, Russia, and Germany is likely to boost regional market growth.

The report provides a detailed overview of the heat-not-burn tobacco products market insights in regions including North America, Latin America, Europe, Asia-Pacific, Oceania, and the Middle East and Africa. The country-specific assessment for the heat-not-burn tobacco products market has been offered for all regional market share, along with forecasts, market scope estimates, price point assessment, and impact analysis of prominent countries and regions. Throughout this market research report, Y-o-Y growth and CAGR estimates are also incorporated for every country and region, to provide a detailed view of the heat-not-burn tobacco products market. These Y-o-Y projections on regional and country-level markets brighten the political, economic, and business environment outlook, which are anticipated to have a substantial impact on the growth of the heat-not-burn tobacco products market. Some key countries and regions included in the heat-not-burn tobacco products market report are as follows:

• Heat-not-burn tobacco products market detailed segments and segment-wise market breakdown
• Heat-not-burn tobacco products market dynamics (Recent industry trends, drivers, restraints, growth potential, opportunities in heat-not-burn tobacco products industry)
• Current, historical, and forthcoming 10 years market valuation in terms of heat-not-burn tobacco products market size (US$ Mn), volume (Units), share (%), Y-o-Y growth rate, CAGR (%) analysis
• Heat-not-burn tobacco products market demand analysis
• Heat-not-burn tobacco products market pricing analysis over the forecast period (by key segment and by region)
• Heat-not-burn tobacco products market regional insights with region-wise market breakdown
• Competitive analysis – key companies profiling including their market share, product offerings, and competitive strategies.
• Latest developments and innovations in heat-not-burn tobacco products market
• Regulatory landscape by key regions and key countries
• Supply chain and value chain analysis in the heat-not-burn tobacco products market
• Heat-not-burn tobacco products market sales and distribution strategies
• A comprehensive overview of the parent market
• A detailed viewpoint on the heat-not-burn tobacco products market forecast by countries
• Mergers and acquisitions in the heat-not-burn tobacco products market
• Essential information to enhance market position
• Robust research methodology