South Korea Tobacco Product Market Overview, 2028

South Korea Tobacco Product Market Overview, 2028

South Korea had been grappling with a significant history of tobacco use, particularly among adult males. In recent years, there has been a growing trend towards the use of heated tobacco products (HTPs) in South Korea. HTPs are marketed as a less harmful alternative to cigarettes. According to the article published in 2022 on National Liberary of Medicine, the prevalence of current cigarette use among young people (19–29 years old) in South Korea has decreased to 24.8% but the current rate of e-cigarette use is 6.3%, which has been on a steady rise. The emergence of e-cigarettes has attracted the curiosity of young people and has set the fashion. The public prefers e-cigarettes to cigarettes in terms of the sophisticated design and technology offered by tobacco companies and the tobacco companies are devoted to the ‘cigarette packaging strategy’ to stimulate public sentiment and consumption Korea Tomorrow & Global Corporation (KT&G), the largest tobacco company in South Korea, is a state-owned enterprise. The government receives a significant amount of revenue from the sale of KT&G products. Some popular cigarette brands in South Korea include The One, Indigo, Arirang, This, This Plus, Zest, Esse, Raison, Lo Crux. In 2023, the total specific excise tax rate for cigarettes was KRW 2,910.2 per 20 sticks. The total specific excise tax rate for heated tobacco was KRW 2,596.2 per pack of 20 sticks, and KRW 275.9 per gram of heated tobacco in other forms. South Korea's Ministry of Health and Welfare (MOHW) has a national anti-smoking campaign. The campaign aims to create a smoke-free environment by promoting anti-smoking campaigns, increasing tobacco prices, and expanding non-smoking public places. The Republic of Korea's smoking cessation policy aims to prevent smoking, encourage smoking cessation, and create a non-smoking environment to protect non-smokers.

According to the research report ""South Korea Tobacco Product Market Overview, 2028,"" published by Bonafide Research, the market is anticipated to add more than USD 5 Billion by 2028. In the tobacco products sector, South Korea did in fact have a distinct dynamic. The market was clearly shifting as a result of the emergence of alternative products, especially heated tobacco devices, even though cigarette use remained quite high when compared to many other industrialized countries. South Korea has a strong cultural tradition of cigarette smoking, and it's usual to see people smoking in approved smoking sites across the nation while enjoying their favorite brands. Still, there was a big impact from the introduction of heated tobacco products. A broad range of people, including children, were drawn to these devices because they were marketed as possibly less dangerous alternatives to regular smoking. Younger consumers in South Korea appeared to be attracted to these innovative products, often drawn by the perception that they offered a ""cleaner"" and less odorous smoking experience. The growth in this segment of the market was remarkable and reflected a global trend of consumers seeking harm reduction alternatives. The introduction of various tobacco product alternatives, such as water pipes, cigars, and cigarillos, has contributed to the diversification of the tobacco market in South Korea. While traditional cigarette consumption has historically been high, the availability of these alternative products has expanded the choices available to consumers.

The market for tobacco products is clearly divided into product categories, including cigarettes, smokeless tobacco, cigars and cigarillos, next generation products, and Kretek. Cigarettes have always commanded the biggest market share, which reflects the enduring predilection for conventional smoking. Smokeless tobacco, which comprises goods like chewing tobacco and snus and caters to various consumer tastes, has also held a sizable market share after cigarettes. The tobacco industry is showing a noteworthy trend in which increase in Next Generation Products is anticipated. As people look for lower-risk options, these products—which frequently include heated tobacco devices, electronic cigarettes, and other cutting-edge substitutes for traditional smoking—are becoming more and more popular. The emergence of Next Generation Products corresponds with a wider worldwide movement towards harm reduction and an increased consciousness of the health hazards linked to conventional smoking. In the years to come, it is anticipated that Next Generation Products will become increasingly significant in the South Korean tobacco business as laws and customer tastes continue to change.
Tobacco products are distributed through a wide range of retail channels, and the market is divided into multiple separate segments. Specialty stores, hypermarkets/supermarkets, convenience stores, the internet, and other outlets are some of these channels. Due to their extensive selection of tobacco products, ability to accommodate a wide range of customer tastes, and ability to deliver an educated and specialized shopping experience, specialty stores have historically had a strong position in this market. Hypermarkets and supermarkets are right behind in terms of accessibility, as tobacco products are readily available alongside other daily necessities, catering to a wide range of customers. Convenience stores, which provide the benefit of closeness and extended hours of operation for consumers seeking convenience, have also played a key influence. However, a noticeable and increasingly significant trend is the growth of online sales in the tobacco market. This trend aligns with broader e-commerce developments and changing consumer behaviors, particularly the preference for the convenience and discretion of purchasing tobacco products online. As the online retail landscape for tobacco evolves, and regulatory environments adapt to digital commerce, it is anticipated that online sales will continue to increase in the coming years, reshaping the dynamics of the tobacco distribution industry. This shift highlights the ever-evolving nature of the market as consumers' shopping habits change, and emerging technologies influence how products are purchased and consumed.

Considered in this report:
•Geography: South Korea
•Historic year: 2017
•Base year: 2022
•Estimated year: 2023
•Forecast year: 2028

Aspects covered in this report:
•South Korea Tobacco Product market with its value and forecast along with its segments
•Various drivers and challenges
•On-going trends and developments
•Top profiled companies
•Strategic recommendation

By Product:
•Cigarette
•Smokeless Tobacco
•Cigar and Cigarillos
•Next Generation Products
•Kretek

By Distribution Channel:
•Speciality Store
•Hypermarket/supermarket
•Convenience Stores
•Online
•Others

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and list out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, and annual reports of companies, analyzing the government-generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers into regional aspects, tier aspects, age groups, and gender. Once we have primary data with us we started verifying the details obtained from secondary sources.

Intended audience:
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the Tobacco Product industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.