Heated Tobacco Products Market Size, Share & Trends Analysis Report By Product (Stick, Leaf), By Distribution Channel (Offline, Online), By Region (North America, Europe, Asia Pacific), And Segment Forecasts, 2025 - 2030

Heated Tobacco Products Market Growth & Trends

The global heated tobacco products market size is expected to reach USD 898.86 billion by 2030, registering a CAGR 63.2% from 2025 to 2030, according to a new report by Grand View Research, Inc. The growth is driven by rising consumer demand for reduced-risk tobacco products as they are claimed to be less harmful to health. Moreover, rise in marketing campaigns coupled with easy product approvals by the U.S. Food and Drug Administration (FDA) and the equivalent governing bodies from Europe and Asia is anticipated to fuel the product demand.

The market is driven by high growth of tobacco sector in Asia and North America. Rise in middle class population coupled with increasing disposable income is projected to drive the demand for Heated Tobacco Products (HTPs). Rising awareness regarding healthy lifestyle and availability of healthier alternatives is anticipated to drive the market growth. Moreover, growing purchasing power of consumers is anticipated to drive the adoption of both stick and leaf products over the forecast period.

Leading manufacturers operating in U.S., Italy, Germany, Croatia, and South Africa among others countries engage in product launches with increasing focus on specialty and premium HTPs. Advertising campaigns, rising number of tobacco shops, and marketing strategies by the FDA itself are anticipated to create growth opportunities for the heated tobacco products market.

North America is anticipated to rise due to rising consumer awareness along with growing product launches from the leading manufacturers. For instance, in April 2019, Philips Morris International entered into the U.S. market with its iQOS heated tobacco products. Asia Pacific, on the other hand, is anticipated to witness significant rise in product demand on account of the ban on E-cigarettes in the key countries. Rising investments from leading players are anticipated to create growth opportunities in the regional market during the forecast period.

Manufacturers engage in product launches and expanding their manufacturing capacity gain greater market share. Key players including Philips Morris International, Japan Tobacco International, and British American Tobacco engage in business strategies, such as acquisitions, mergers, online sales, and capacity expansion.

Heated Tobacco Products Market Report Highlights

• The stick segment accounted for the largest revenue share of 72.0% in the heated tobacco products industry in 2024. The rising adoption of HTPs among modern consumers and their perception as a premium and less risky option has led to the increased production of heated tobacco sticks.
• The online segment is expected to advance at the fastest CAGR during the forecast period in this industry. Online platforms allow consumers to purchase heated tobacco devices and accessories anywhere and anytime, and it is more convenient than having to visit physical stores with limited operating hours.
• Asia Pacific accounted for a dominant revenue share of 68.9% in the global market for heated tobacco products in 2024. High smoking rates in regional economies such as Japan and China have resulted in increasing concerns about the health risks associated with conventional cigarettes.
• The heated tobacco products market is highly competitive in nature with the presence of major players including Philips Morris International, Japan Tobacco International, and British American Tobacco.
• Manufacturers focus on new product launches, capacity expansion, and product innovation to estimate existing and future demand patterns from the upcoming product segments