Global Heated Tobacco Products Market - 2022-2029

Global Heated Tobacco Products Market - 2022-2029

Market Overview

The global heated tobacco products market valued USD xx million in 2021 and is forecast to reach USD xx million by 2029, growing at a CAGR of xx% during the forecast period (2022-2029).

Heated tobacco products (HTPs) produce aerosols with nicotine and other chemicals that users inhale through the mouth. They contain the highly addictive substance nicotine (in tobacco), making them addictive. They also contain non-tobacco additives and are often flavored. HTPs mimic the behavior of conventional cigarette smoking, and some make use of specially designed cigarettes to contain the tobacco for heating.

Market Dynamics:

The health risks associated with cigars and chewing tobacco are expected to drive the adoption of heated tobacco products

The health risks associated with cigars and chewing tobacco are expected to drive the adoption of heated tobacco products. The rising ban on cigarettes and their manufacture across different countries and the growing awareness of the dangerous side-effects of tobacco consumption are propelling the growth of this market. For instance, as per The Centers for Disease Control and Prevention, in 2020, nearly 13 of every 100 U.S. adults aged 18 years or older currently smoked cigarettes. These data indicated to estimated 30.8 million adults in the United States who currently smoke cigarettes. More than 16 million Americans live with a smoking-related disease. Current smoking has declined from 20.9% in 2005 to 12.5% in 2020. HTP devices do not burn tobacco; instead, they implement convective and radiant heat. As such, they are used for longer periods. Factors such as these are expected to increase the adoption of heated products among individuals.

Moreover, easy clearance from the U.S. Food and Drug Administration (FDA) and equivalent regulatory bodies from Europe and Asia are anticipated to indicate well for the market's growth. For instance, in 2018, Philip Morris International Inc. received FDA approval for its heated tobacco products sold in the United States. Furthermore, the global manufacturers projected rising online sales and media campaigns to drive product sales in the upcoming years.

However, increased concerns about health issues are due to the consumption of heat-not-burn tobacco products. And also, sales have been banned in various countries across the globe. In addition, the rising acceptance of e-cigarettes is expected to restrain the adoption of HTPs, thereby hindering the growth of this 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.

Market Segmentation:

The stick segment held the highest market revenue share of xx% in the year 2021

Based on product type, the stick segment held the highest market revenue share of xx% in 2021, attributed to the high adoption of HTPs as a premium product. Moreover, its high prices and the rising demand due to ease of use are anticipated to drive increased revenues in the upcoming years. For instance, Philip Morris International introduced the IQOS heated tobacco system in Nagoya, Japan. The IQOS system’s Marlboro Heat sticks rapidly grew, comprising a 17.4 percent share of the combined heated tobacco stick market by 2019. The availability of additives and various flavors apart from the traditional combustible cigarette is expected to fuel their demand.

Based on distribution channel, the offline segment held the highest share of the heated tobacco products market in 2021 due to the easy availability and comfort of buying the products. The condition of separate smoking zones and stores by private organizations and clubs is predicted to impact the growth positively. Various flavors and attractive packaging are expected to contribute to offline sales.

Geographical Penetration:

Asia Pacific is dominating the global heated tobacco products market in the year 2021

The Asia Pacific held the largest heated tobacco products market share of about xx% in 2021. It is driven by the rising consumption of iQOS brand heated tobacco products in Japan and Korea. According to the WHO report, the Southeast Asian region currently has the highest rates of tobacco use, with around 432 million users, or 29% of its population.

Europe is expected to register the fastest-growing heated tobacco products market over the forecast period. As per WHO statistics, Europe has the highest majority of tobacco smoking among adults (28%) and some of the highest majority of tobacco use by adolescents. Higher penetration of leading manufacturers such as Philips Morris International, Japan Tobacco International, and British American Tobacco in Italy, Russia, Poland, Croatia, and Germany is projected to drive the regional growth. For instance, In January 2018, British American Tobacco invested around USD 400 million to extend its area of operation in Croatia.

Competitive Landscape:

The global heated tobacco products market is highly competitive with several international and local markets. Product diversification, revenue generation, and opportunities intensify the market competition. The market players engage in business strategies such as product innovations, endorsements, marketing campaigns, capacity expansions, and acquisitions, initiated by the key players, such Philips Morris International, Japan Tobacco International, and British American Tobacco among others. For instance, in July 2019, Philip Morris International Launched IQOS 3 Heated-Tobacco Product in the UAE. They provide adult smokers who do not want to quit with better alternatives to cigarettes. In August 2021, JT Group launched Ploom X, its next-generation heated tobacco device. Ploom X is equipped with a new heating technology, HEATFLOW, which focuses on airflow, significantly improving user experience.

Covid-19 impact:

Positive impact on the global heated tobacco products market

The COVID-19 outbreak has resulted in unexpected alterations in routine and changes in health behaviors. Most consumers have changed their smoking habits with an alternative product, including low tobacco or non-tobacco products. For instance, E-cigarettes and HTTP played an important role as smoking cessation tools for hardcore smokers. Still, they provided young, never smokers opportunities to engage in socially acceptable activities. Overall tobacco use decreased after the first two waves of the COVID-19 outbreak in Hong Kong. A greater proportion of cigarette users decreased use than HTP and e-cigarette users. These factors indicated a positive demand for heated tobacco products.

Why Purchase the Report?

Understand the current market scenario and viability of global heated tobacco products market over the forecast period

Visualize the composition of the global heated tobacco products market in terms of product type and distribution channel to identify major players, growth potential, and market strategies

Identify the key regulations prevailing in the market and understand their impact on the market over the forecast period

Understand the key business factors such as market competition, product pricing, new product developments, and patent filings pertaining in the market

What we offer?

PDF report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study

Excel data sheet with valuable data points of the global heated tobacco products market – Regional and Country level segmentation

Product mapping in excel for the key products of all major market players

Market share analysis covering business revenues ($) and revenue share (%) of key market players

The global heated tobacco products market report would provide an access to approximately 53 market data tables, 40 figures, and 190 pages

Target Audience:

Heated Tobacco Products Manufacturers

E-Cigarettes Manufacturers

Education & Research Institutes

Research Professionals