USD 13.6 billion
Heated Tobacco Products Market Size, Share, Growth Analysis, By Type(Devices, Capsules, Vaporizers), By Product(HNB Tobacco Devices, Direct/Indirect Heating HNB Tobacco., Infused/Hybrid HNB Tobacco Devices, HNB Tobacco Consumables), By Distribution Channel(Retail Stores and Online), By Region - Industry Forecast 2025-2032
Report ID:
SQMIG30J2018 |
Region:
Global |
Published Date: July, 2024
Pages:
157
|Tables:
91
|Figures:
80
Heated Tobacco Products Market Insights
Heated Tobacco Products Market size was valued at USD 0 Billion in 2023 and is poised to grow from USD 0 Billion in 2024 to USD 0 Billion by 2032, growing at a CAGR of 52.56% during the forecast period (2025-2032).
Hot Tobacco is a type of Tobacco product that is also referred to as heated Tobacco or heat-not-burn Tobacco. Heated Tobacco Products (HTPs) generate aerosols that include nicotine and other chemicals, which users inhale through the mouth. These products use specific Tobacco products that are heated to temperatures below combustion levels. The process releases flavors with nicotine, allowing users to enjoy Tobacco without combustion. HNB Tobacco devices, direct/indirect heating HNB Tobacco, infused/hybrid HNB Tobacco devices, HNB Tobacco consumables, HNB Tobacco sticks, and HNB Tobacco capsules & cartridges are the primary categories of hot tobacco products. HNB Tobacco devices release nicotine-containing, Tobacco-flavored vapor without generating the hallmarks of combustion such as fire, smoke, and ash. The goods are sold at retail establishments and on websites.
The government authorities' approvals are expected to increase demand for hot tobacco products during that time. For instance, Philip Morris International (PMI) was given permission by the U.S. Food and Drug Administration to advertise its IQOS Tobacco Heating System as a tobacco product with a lowered risk in July 2020. The IQOS is a heated tobacco stick, also known as "HeatSticks" and "HEETS," that is marketed in packs, resembles miniature cigarettes, and is made from tobacco leaves that have been ground into a powder.PMI claims that IQOS reduces a person’s exposure to harmful chemicals. Therefore, easy government approvals coupled with reduced risks of smoking are projected to drive the demand for hot Tobacco products over the forecast period. Yet, it is anticipated that the rising popularity of e-cigarettes will restrain growth of the lucrative tobacco sector. Philip Morris International (PMI) is one of the major players in the global heated Tobacco products market. The company has been investing heavily in the development and marketing of its IQOS Tobacco heating system, which has received approval from several government bodies as a modified risk Tobacco product. Batteries power e-cigarettes, which are seen as less dangerous because they don't contain tobacco. To simulate traditional smoking, these gadgets evaporate nicotine-containing liquid. For instance, the demand for vape devices has skyrocketed. These include e-cigarettes, e-hookahs, and other items. In the USA, e-cigarette use was reported by 19.6% of high school students (3.02 million) and 4.7% of middle school students (550,000) in 2020. It follows that the market for hot tobacco products is expected to experience slow growth in the near future due to the rising popularity of vape goods and e-cigarettes.
US Heated Tobacco Products Market is poised to grow at a sustainable CAGR for the next forecast year.
Market snapshot - 2024-2031
Global Market Size
Largest Segment
Devices
Fastest Growth
Devices
Growth Rate
52.56% CAGR
Global Heated Tobacco Products Market 2022-2030 ($ Bn)
Country Share for North America Region- 2022 (%)
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Heated Tobacco Products Market Segmental Analysis
Global Heated Tobacco Products market is segmented by type, product, distribution channel, and region. Based on type, the market can be segmented Devices, Capsules, Vaporizers. Based on product, the market can be segmented into HNB Tobacco Devices, Direct/Indirect Heating HNB Tobacco., Infused/Hybrid HNB Tobacco Devices, HNB Tobacco Consumables, HNB Tobacco Sticks, HNB Tobacco Capsules & Cartridges. Based on Distribution channel, the market is segmented into Retail Stores and Online. Based on region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Heated Tobacco Products Market Analysis by Type
By type, the market can be segmented into devices, capsules, vaporizers. The devices segment dominated the global market. The segment includes a variety of products that heat Tobacco instead of burning it. This can include devices that resemble traditional cigarettes, as well as larger devices that resemble vaporizers or e-cigarettes. These products are often the most familiar to consumers.
The capsules segment is expected to grow at the fastest CAGR. The segment includes small capsules or cartridges that are filled with Tobacco and designed to be used with specific heated Tobacco devices. These capsules are often disposable, and are intended to provide a convenient way for users to enjoy heated Tobacco without the need for additional equipment. The capsules segment is a growing segment of the market, as more companies are developing heated Tobacco devices that are compatible with these capsules.
Heated Tobacco Products Market Analysis by Enterprise Size
By product, the market can be segmented into HNB Tobacco Devices, Direct/Indirect Heating HNB Tobacco., Infused/Hybrid HNB Tobacco Devices, HNB Tobacco Consumables, HNB Tobacco Sticks, HNB Tobacco Capsules & Cartridges. The HNB Tobacco devices segment dominated the global market. These are a type of electronic device that heats Tobacco without burning it, creating a vapor that can be inhaled. This segment of the market is expected to grow rapidly in the coming years, as more people become interested in smoking alternatives that are perceived to be less harmful than traditional Tobacco products. HNB Tobacco devices are popular because they offer a similar smoking experience to traditional cigarettes, but without the harmful chemicals that are produced by combustion. These devices are also often marketed as being more convenient and easier to use than other types of smoking alternatives.
Direct and indirect heating HNB Tobacco segment is expected to grow at the fastest CAGR. These products are similar to HNB Tobacco devices, but they use different heating methods to create the vapor that is inhaled. Direct heating HNB Tobacco products use a heating element that is in direct contact with the Tobacco, while indirect heating products use a heated air stream to heat the Tobacco. Both types of heating methods have their advantages and disadvantages, and consumers may prefer one over the other based on their individual preferences.
Global Heated Tobacco Products Market By Type, 2022 (%)
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Heated Tobacco Products Market Regional Insights
North America is the dominant regions in the global heated Tobacco products market, owing to the presence of a large number of key players in the region. The market in North America is primarily driven by the increasing awareness of the health benefits of heated Tobacco products as compared to traditional cigarettes. In addition, the growing number of smokers in the region is also expected to drive the growth of the market over the forecast period. The United States is one of the major markets for heated Tobacco products in North America. The country has witnessed a significant increase in the adoption of heated Tobacco products due to the high prevalence of smoking among adults. Moreover, the presence of key players such as Philip Morris International and Altria Group, Inc. in the region is also expected to drive the growth of the market in the country. These companies are investing heavily in the development of new and innovative heated Tobacco products to attract more customers and gain a competitive edge in the market. Canada is another significant market for heated Tobacco products in North America. The market in the country is primarily driven by the increasing number of smokers and the growing demand for smoke-free alternatives to traditional cigarettes. The Canadian government has also been promoting the use of heated Tobacco products as a less harmful alternative to smoking, which is expected to further drive the growth of the market in the country. The market in North America is highly competitive, with key players focusing on developing new and innovative products to gain a competitive edge in the market. Some of the key players in the region include Philip Morris International, Altria Group, Inc., British American Tobacco plc, and Japan Tobacco Inc. These companies are investing heavily in research and development to develop new products and expand their product portfolio to cater to the growing demand for heated Tobacco products in the region.
The Asia-Pacific (APAC) region is expected to be the fastest-growing market for heated Tobacco products. The increasing popularity of these products in countries like Japan, South Korea, and Indonesia is driving the growth of the market in the region. Additionally, the increasing adoption of Western lifestyles and rising disposable incomes in countries like China and India are also fueling the demand for heated Tobacco products. Japan is the largest market for heated Tobacco products in the APAC region, and it is expected to remain dominant in the forecast period. The country has witnessed a significant increase in the number of smokers switching from traditional cigarettes to heated Tobacco products like IQOS, which is a major product offered by Philip Morris International. Additionally, the government's efforts to reduce smoking rates have resulted in a favorable regulatory environment for heated Tobacco products. South Korea is another major market for heated Tobacco products in the APAC region.
Global Heated Tobacco Products Market By Geography, 2022-2030
- Largest
- Fastest
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Heated Tobacco Products Market Dynamics
Heated Tobacco Products Market Drivers
Increasing awareness
- The global HNB market is expected to witness significant growth in the coming years due to factors such as increasing awareness about the harmful effects of smoking, rising demand for less harmful alternatives to traditional cigarettes, and growing product innovations by manufacturers. The increasing adoption of HNB products by individuals who want to quit smoking or reduce their Tobacco consumption is also expected to drive market growth. Additionally, the growing popularity of e-cigarettes and vaping devices, which are often considered as alternatives to HNB products, is also expected to create opportunities for market growth. Overall, the HNB market is expected to experience significant growth in the coming years as more individuals seek safer alternatives to traditional Tobacco products.
Heated Tobacco Products Market Restraints
Health Risk
- One major restraint for the heated Tobacco products market is the potential health risks associated with the use of these products. Despite being marketed as a "safer" alternative to traditional cigarettes, heated Tobacco products still contain nicotine and other harmful chemicals that can lead to various health issues such as lung diseases and cancer. Additionally, there is a lack of long-term studies on the effects of using heated Tobacco products, which can make it difficult for regulators to fully assess their safety. This can lead to stricter regulations and potential bans on the use and sale of these products, which can negatively impact the growth of the market.
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Heated Tobacco Products Market Competitive Landscape
The global heated Tobacco products market is highly competitive with the presence of several regional and international players. The market is dominated by companies that have established themselves in the market, and they have significant market shares. These companies are consistently expanding their product portfolio and investing in research and development to improve their products' quality and features. Moreover, companies are adopting various strategies such as partnerships, collaborations, and mergers and acquisitions to expand their market share and strengthen their position in the market. The competition is expected to intensify further with the entry of new players in the market, offering innovative products and solutions to consumers.
Heated Tobacco Products Market Top Player’s Company Profiles
- Philip Morris International Inc.
- Japan Tobacco Inc.
- British American Tobacco PLC
- KT&G Corporation
- Imperial Brands PLC
- Altria Group, Inc.
- China Tobacco International (HK) Co. Ltd.
- Korea Tobacco & Ginseng Corporation
- JUUL Labs, Inc.
- The R.J. Reynolds Tobacco Company
- Shenzhen Yukan Intelligent Technology Co., Ltd.
- Pax Labs, Inc.
- Shenzhen iSmoka Electronics Co., Ltd.
- VMR Products, LLC
- Shenzhen Kanger Technology Co., Ltd.
- Mistic Brands, Inc.
- British American Tobacco Japan Ltd.
- J WELL France
- Vaporesso
Heated Tobacco Products Market Recent Developments
- In February 2023, Philip Morris International announced that it partnered with Swiss medical technology company, Breath Therapeutics, to develop an inhalable treatment for pulmonary arterial hypertension.
- In January 2022, British American Tobacco announced that it acquired a 19.9% stake in Canadian cannabis company, Organigram Holdings.
- In September 2021, Imperial Brands launched a new heated Tobacco product, called Pulze, in Japan.
- In May 2021, Japan Tobacco International announced that it received approval from the US FDA to market its heated Tobacco product, Ploom TECH+, in the US.
- In January 2021, Philip Morris International announced that it received approval from the US Food and Drug Administration to market its heated Tobacco product, IQOS, in the US.
Heated Tobacco Products Key Market Trends
- One key market trend in the market is the increasing adoption of product innovations by manufacturers. Manufacturers are constantly focusing on developing new and improved HNB products with advanced features and technologies that offer a better smoking experience for consumers. They are also exploring new flavors and product designs to cater to the evolving preferences of consumers. Additionally, manufacturers are investing in research and development activities to improve the safety and efficacy of their products, and to comply with regulatory standards. This trend is expected to continue in the coming years, as manufacturers compete to gain a larger share of the growing HNB market.
Heated Tobacco Products Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
According to our global heated Tobacco product market analysis, the market is growing at a significant rate due to increasing consumer demand for less harmful alternatives to traditional smoking methods. North America dominates the market due to increasing awareness about the harmful effects of traditional cigarettes and the availability of heated Tobacco products. The APAC region is also experiencing significant growth, with Japan being a key market due to early adoption of heated Tobacco products. However, the market growth is hindered by regulations imposed by various governments and organizations due to concerns over the health risks associated with heated Tobacco products. Companies are investing in research and development to enhance product quality and reduce health risks, and partnerships and collaborations are emerging as key strategies for market growth.
| Report Metric | Details |
|---|---|
| Market size value in 2023 | USD 13.6 billion |
| Market size value in 2031 | USD 947.8 billion |
| Growth Rate | 52.56% |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
Heated Tobacco Products Market Recent Developments
|
| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Heated Tobacco Products Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Heated Tobacco Products Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Heated Tobacco Products Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Heated Tobacco Products Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Heated Tobacco Products Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Heated Tobacco Products Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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