Heat Not Burn Tobacco Products Market - Forecasts from 2022 to 2027

The heat not burn tobacco products market was valued at US$6.140 billion in 2020 and is expected to grow at a CAGR of 21.61% over the forecast period to reach a market size of US$24.155 billion in 2027.

The ‘Heat not burn’ or ‘heated tobacco’ products are electronic devices that, unlike e-cigarettes, contain tobacco leaf and heat it to a high temperature by using electricity, without setting it alight. The devices heat tobacco to 350C (662F), far lower than traditional cigarettes that burn at temperatures up to 900C (1,652F). The heat produces a vapour that contains nicotine, chemicals, and other tobacco particles, also found in traditional tobacco smoke but in higher values. The market for heat not burn tobacco products is augmented by the increasing demand for tobacco products and increasing awareness about the use of no-smoke tobacco products. Additionally, the high advertising and promotion by the companies are also boosting the market demand. Moreover, the increasing investment in research and development is also supporting market growth. However, the various legislation and regulatory responses and the lack of scientific evidence regarding heat not burn tobacco products are a concern for the market.

Drivers

Global manufacturers are anticipated to invest in the global heat-not-burn tobacco products market owing to the low risks and strong demand. Adding to that, regulatory authorities have been approving heat-not-burn tobacco products for sale in major regions such as Europe, the US, and China and this factor is thus expected to boost the market growth. For instance, Philip Morris International Inc. obtained permission from the FDA to sell heat not burn tobacco products in the US, which is expected to have a positive impact on market growth.

Heat not burn tobacco products emit a nicotine-laced vapour that may be used multiple times, which makes them a popular choice among teenagers who do not want to spend a lot of money on multiple purchases of cigarettes. Because of this, these items can be used for a longer period of time than conventional products involving tobacco. Further, technical advancements have resulted in the innovation of heat not burn tobacco products that create enormous volumes of vapour, which have been gaining a lot of popularity amongst young smokers. Furthermore, heat not burn tobacco products have also assisted many smokers in quitting smoking, giving them a viable alternative to smoking. Individuals are thus likely to embrace heat not burn tobacco products more quickly as a result of all these factors, which is expected to drive growth in the market.

Restraints

The growing adoption of e-cigarettes is predicted to restrict the adoption of heat not burn devices, thus, restraining the growth of the market. E-cigarettes do not contain tobacco and are believed to comprise lesser amounts of toxic substances than conventional tobacco products. Such benefits are expected to boost the adoption of e-cigarettes at the cost of the growth of the heat not burn market products. Furthermore, the stringent regulations imposed by local authorities across countries like Australia, the US, and Germany have restrained market growth, which includes the ban on the sale of these products. Apart from these, other countries have also banned the sale and distribution of vapour products, which in turn has significantly impacted sales of heat not burn tobacco products and restrained market growth. For instance, in December 2019, India implemented a ban on heated tobacco products as well as e-cigarettes after describing them as a bad influence on the youth of the nation. Regulations like these are thus expected to heavily hamper the growth of the market.

Competitive Insights

Some of the major players that are operational in the global heat-not-burn tobacco products market are Altria Group, Inc., British American Tobacco plc, Philip Morris International Inc., and Japan Tobacco Inc, among others. In June 2019, Japan Tobacco Inc released Ploom TECH+ and four other varieties of Ploom TECH+ tobacco capsules. Nearly 57,000 convenience shops and 2,000 tobacco retail stores across Japan began selling this product.

COVID-19 Impact Insights

The outbreak of the COVID-19 pandemic caused governments across various countries to implement lockdowns, which subsequently forced companies to halt their manufacturing, sale, and distribution of non-essential goods, which included tobacco products. Further, the use of tobacco products was said to increase the risk of suffering from severe symptoms due to the COVID-19 illness. A lot of research in the healthcare sector indicated that compared to non-smokers, people having a habit of smoking posed a greater risk of adverse health consequences for COVID-19 as it directly impacts the lungs, which further hampered the growth in the market. However, with the ease of the restrictions, the market is likely to witness growth as socializing among people is increasing, which is expected to positively impact market growth.

Market Segmentation:

By Type

• Flame-Activated HTPs
• Electronic HTPs

By Distribution Channel

• Online
• Offline

By Geography

• North America
• United States
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• UK
• Germany
• France
• Italy
• Spain
• Others
• Middle East and Africa (MEA)
• Saudi Arabia
• UAE
• Isreal
• Others
• Asia Pacific
• China
• Japan
• South Korea
• India
• Indonesia
• Thailand
• Taiwan
• Others