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The heat-not-burn tobacco products market size is forecast to increase by USD 91.26 billion at a CAGR of 37.74% between 2023 and 2028. Heat-not-burn tobacco products represent a burgeoning market segment, offering cost-effective alternatives to conventional cigarettes. These innovative devices heat tobacco instead of burning it, resulting in a smoother experience with reduced harmful chemicals compared to traditional cigarettes. The growing health consciousness among consumers and regulatory pressures on smoking have accelerated the market growth. Furthermore, the organized retail sector's expansion provides a robust distribution network for these products, ensuring their accessibility to a wider audience. As a result, heat-not-burn tobacco products are poised to disrupt the traditional tobacco market, offering a safer and more cost-effective smoking alternative.
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In the contemporary market, the shift towards health-conscious alternatives to traditional tobacco products has gained significant traction. One such innovation is Heat-Not-Burn (HNB) tobacco products. These devices, available at both supermarkets and tobacco stores, operate by heating tobacco leaves without burning them. This process releases flavorful vapor, which some consumers believe poses lower health risks compared to flame-activated HTP or electronic HTP. However, it is essential to note that HNB products still contain dangerous chemicals, albeit in reduced quantities compared to conventional cigarettes. While the vaporization process may mitigate some of the dangerous side effects associated with smoking, it is crucial for consumers to approach these products with caution. The allure of various flavors may entice users, but the potential health implications should not be overlooked.
Ultimately, the decision to adopt HNB tobacco products lies with the individual's personal health priorities and risk tolerance. Retail stores and online platforms are key distribution channels for HNB products. Medical professionals and health bodies are advocating for harm reduction tactics, further fueling the demand for these smokeless alternatives. The aerosol produced by HNB devices contains nicotine-laced vapour, which may still carry some health risks, but is generally considered less harmful than cigarette smoke. The tobacco industry is adapting to these changes, with many companies exploring opportunities in the HNB sector. Consumers are making health-conscious choices, and the industry is responding with innovative products and marketing promotions. The future of tobacco consumption lies in these electronic devices and processed tobacco alternatives.
The cost-effectiveness of heat-not-burn tobacco products is the key factor driving the products market growth. Over the past decade, the cost-effectiveness of heat-not-burn tobacco products has been the most important driver that is accelerating the demand for smoke-free products across different geographical regions. Heat-not-burn tobacco devices and capsules are relatively more economical than conventional tobacco products, as many countries are raising the taxes on traditional cigarettes, which has led to a considerable increase in their prices.
Therefore, heat-not-burn tobacco products have emerged as a cost-effective option for price-sensitive consumers, thereby increasing their adoption in the US. Heat-not-burn tobacco products have become a cost-effective option for Millennials and adolescent users, who, despite being the most frequent consumers of cigarettes, are the most price-sensitive demographic cohorts as well.
The increasing promotional activities by vendors will fuel the global HNB tobacco products market growth. The players in the market are coming up with new marketing and advertising strategies to increase the sales of their products and highlight the various benefits of using heat-not-burn tobacco products. They are resorting to advertising campaigns that encourage people to limit the habit of smoking cigarettes that burn tobacco. Philip Morris International markets its heat-not-burn tobacco products as 'designed to create a flavorful and satisfying nicotine-containing vapor, without burning and without smoke.'
Further, the company claims that this advertisement campaign targets consumers above the age of 35 years and features testimonials from smokers aged 37-54 years. Therefore, the initiatives taken by vendors to promote the consumption of tobacco products with minimal nicotine content are likely to increase the adoption of heat-not-burn tobacco products among smokers across the globe during the forecast period.
The rising popularity of smokeless tobacco products is a major challenge to the market growth. The market is still relatively in the nascent stage when compared with the market for smokeless tobacco products like snus, chewing tobacco, moist snuff, and vaping products. Therefore, it becomes imperative for the key vendors in the market to sell their products with differentiating features and strengthen their customer base by implementing intensive strategies based on consumer engagement.
In the US and other North American countries, the major smokeless tobacco products that are highly popular among the masses include snus, moist snuff, and chewing tobacco; snus accounts for a major share of the smokeless tobacco market in the US. In India, the local variants of smokeless tobacco products include gutkha, khaini, and zarda, which are quite popular among the masses due to their comparative affordability, which poses a serious threat to the HNB tobacco products market during the forecast period.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting strategies.
Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
iSmoke Vapor Inc. - The company offers heat-not-burn tobacco products such as Lafayette vaping devices. Also, the company focuses on offering vaping devices and e-liquids.
The research report also includes detailed analyses of the competitive landscape of the market and information about 11 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market share growth by the devices segment will be significant during the forecast period. In 2022, the devices segment was the largest product segment in the HNB tobacco products market. Over the same period, the global heat-not-burn tobacco devices market was highly concentrated due to the presence of a few regional as well as global vendors. Furthermore, heat-not-burn tobacco devices usually comprise starter kits that contain a charger, a device holder, and a heating unit.
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The devices segment showed a gradual increase in market share with USD 7.14 billion in 2018. Factors such as the increasing number of launches of heat-not-burn tobacco devices in different countries across the world and the relatively lower cost of heat-not-burn tobacco devices when compared to conventional cigarettes are projected to have a positive impact on the growth of the global heat-not-burn tobacco devices market during the forecast period.
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APAC is estimated to contribute 45% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The market encompasses the sales of electronic devices designed for the consumption of processed tobacco without the production of cigarette smoke. These devices utilize heat-not-burn technology, which involves heating tobacco leaf to generate nicotine-laced vapour without the need for flame activation. Two primary types of heat-not-burn technology exist: flame-activated HTP and electronic HTP. Consumers can purchase these products from various retail channels, including supermarkets, hypermarkets, specialty stores, and online retailers. The availability of these products in diverse retail outlets broadens their reach and accessibility to a wider consumer base. Heat-not-burn tobacco devices offer an alternative to traditional cigarettes, providing users with the taste and sensation of tobacco without the harmful components associated with cigarette smoke.
As a result, these products have gained popularity among health-conscious smokers seeking to reduce their exposure to tobacco-related hazards. The heat-not-burn tobacco market is expected to grow significantly due to the increasing acceptance and adoption of these electronic devices. The convenience and flexibility offered by these products, coupled with their perceived health consciousness, make them an attractive option for smokers looking to switch from traditional cigarettes. In conclusion, the market represents the sales of electronic devices that enable the consumption of processed tobacco without the production of cigarette smoke. These devices utilize heat-not-burn technology and are available at various retail channels, including supermarkets, hypermarkets, specialty stores, and online retailers. The market is expected to grow due to the increasing acceptance and adoption of these products as an alternative to traditional cigarettes.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
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In the evolving tobacco landscape, Heat-Not-Burn (HNB) tobacco products have emerged as smokeless alternatives to traditional cigarette sales. These innovative devices, which include heat-not-burn devices and electronic heated tobacco products, offer consumers the taste of tobacco without the harmful chemicals associated with conventional combustible cigarettes. The retail store segment continues to dominate the HNB tobacco store, with a significant presence of tobacco stores and supermarket. However, the online sales channel is rapidly growing, offering consumers a wider range of flavor and convenience. It's essential to remember that while HNB tobacco products may be considered less harmful than traditional cigarettes, they still carry potential health risks. Therefore, it's crucial to use these products responsibly and be aware of their long-term health effects. The HNB sector is witnessing significant growth due to various factors. Global manufacturers are investing heavily in research and development to produce reduced risk products. Prohibition and taxes on tobacco sales have driven consumers towards HNB devices and electronic cigarettes. The young population, particularly health-conscious individuals, are increasingly drawn to these smokeless alternatives. HNB products contain fewer toxic substances compared to conventional cigarettes.
In addition, the market includes various segments such as sticks segment, looseleaf components, and retail stores. The market is expanding rapidly, driven by health-conscious consumers seeking alternatives to traditional tobacco products like cigarettes. These products, including heated tobacco devices and e-cigarettes, aim to reduce the dangerous side-effects associated with smoking by heating tobacco rather than burning it, thereby potentially reducing the harmful impact on lungs. The market encompasses various segments such as sticks, offering a range of flavors to cater to diverse consumer preferences. With the rise of online retail, consumers have easier access to these products, fostering their adoption globally. Innovations like flame-activated HTPs are further enhancing convenience and user experience, positioning heat-not-burn products as a significant player in the evolving tobacco industry landscape.
Market Scope |
|
Report Coverage |
Details |
Page number |
161 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 37.74% |
Market growth 2024-2028 |
USD 91.26 billion |
Market structure |
Concentrated |
YoY growth 2023-2024(%) |
29.11 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 45% |
Key countries |
US, Japan, Italy, UK, and China |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
British American Tobacco Plc, Imperial Brands Plc, iSmoke Vapor Inc., Japan Tobacco Inc., JFT Co. Ltd., KT and G Corp., Mysmok Electronic Technology, Pax Labs Inc., Philip Morris International Inc., SLANG Worldwide Inc., and Vapor Tobacco Manufacturing |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for market forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Distribution Channel
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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