Hot Tobacco Market Report 2025

The hot tobacco market size has grown exponentially in recent years. It will grow from $18.75 billion in 2024 to $24.12 billion in 2025 at a compound annual growth rate (CAGR) of 28.6%. The growth in the historic period can be attributed to strong economic growth in emerging markets, increased demand for tobacco products and increased promotion and marketing efforts.

The hot tobacco market size is expected to see exponential growth in the next few years. It will grow to $54.97 billion in 2029 at a compound annual growth rate (CAGR) of 22.9%. The growth in the forecast period can be attributed to rising disposable income and rising new product launches. Major trends in the forecast period include focus on enhancing business operations in the hot tobacco market through new product launches and strengthening business operations in the hot tobacco market through strategic partnerships and collaboration.

The anticipated growth of the hot tobacco market is driven by the associated health risks linked to cigarettes and chewing tobacco. Cigarette smoking is correlated with an elevated risk of lung cancer, heart disease, and various respiratory and cardiovascular health issues, while chewing tobacco heightens the risk of oral cancer, gum disease, and various oral health problems. Heated tobacco is perceived as a less harmful alternative to traditional cigarettes and chewing tobacco due to its lower combustion levels, reduced presence of toxic chemicals, and diminished secondhand smoke. For instance, in July 2022, the Centers for Disease Control and Prevention reported that globally, tobacco consumption leads to over 7 million deaths annually. In the United States, cigarette smoking alone is responsible for over 480,000 deaths per year, with an additional 41,000 deaths attributed to exposure to secondhand smoke. Consequently, the associated health risks with cigarettes and chewing tobacco are key factors driving the growth of the hot tobacco market.

The growth of the hot tobacco market is expected to be propelled by strict laws regulating smoking in public places. These stringent laws aim to safeguard public health by minimizing exposure to secondhand smoke, discouraging the normalization of smoking, and fostering a smoke-free environment in communal spaces such as restaurants, workplaces, and public transportation. The enforcement of strict laws on smoking in public spaces encourages smokers to seek alternatives that are socially acceptable, perceived as less harmful, and compliant with smoking regulations. Furthermore, marketing heated tobacco products as aids for smoking cessation can attract individuals seeking to quit or reduce tobacco consumption. For instance, in January 2023, the Mexican government introduced new regulations under the General Law for Tobacco Control, effective from December 16, 2022. These regulations include a complete ban on tobacco product advertising and promotion, along with restrictions on displaying these products at points of sale. Additionally, there is an expansion of 100% smoke-free and emission-free areas, prohibiting the use of tobacco and nicotine products, with new signage provided for compliance. Hence, the stringent laws on smoking in public places play a significant role in driving the growth of the hot tobacco market.

Major companies in the hot tobacco market are concentrating on the development of heated tobacco devices as alternatives to traditional smoking. A heated tobacco device is a type of smoking apparatus that heats tobacco to a temperature high enough to release nicotine and flavor without causing combustion. For example, in April 2024, Philip Morris International Inc., a US-based tobacco firm, introduced IQOS, a heated tobacco device. This device does not generate smoke, fire, or ash, making it a cleaner option compared to conventional smoking methods. The IQOS ILUMA PRIME model allows for two consecutive uses without the need to recharge the holder and boasts enhanced draw and taste consistency. The IQOS ORIGINALS DUO is designed for users looking for a straightforward experience, offering two consecutive uses. Meanwhile, the IQOS ORIGINALS ONE features an all-in-one design that provides three consecutive uses.

Major players in the hot tobacco market are actively innovating new products equipped with advanced heating technology to maintain a competitive advantage. Heated tobacco technology encompasses products and devices designed to heat tobacco without combustion, producing an inhalable aerosol. In July 2022, British American Tobacco PLC, a UK-based cigarette company, introduced glo Hyper X2 as part of this innovative trend. The latest product showcases a barrel styling design and incorporates advanced induction heating technology. It enhances the user experience with features such as a boost function for faster heating, a battery status LED indicator, and a protective iris-shaped shutter. glo Hyper X2 is positioned as a reduced-risk product, backed by a year-long study demonstrating substantial and sustained improvements for smokers who switch to glo.

Major companies operating in the hot tobacco market include Philip Morris International, British American Tobacco, Japan Tobacco International, Korean Tobacco & Ginseng (KT&G), Imperial Brands, Altria Group Inc, Hongyun Honghe Group, Souza Cruz S.A., ITG Brands LLC, Hongta Tobacco Group, Heintz Van Landewyck, Habanos S. A., Mysmok Electronic Technology, PT Gudang Garam Tbk, China Tobacco International, Liggett Vector Brands LLC, ITC Limited, Reynolds American Inc, Hot Dokha Tobacco, Benson & Hedges Inc, Carreras Limited, Far East Tobacco Inc, Vapor Tobacco Manufacturing, Continental Tobacco Group, Tobacco Rag Processors Inc, Turning Point Brands Inc, Karelia Tobacco Company Inc, Mastermind Tobacco Kenya (MTK), Shenzhen Yukan Technology Co., Ltd.

Asia-Pacific was the largest region in the hot tobacco market in 2024. North America was the second-largest region in the global hot tobacco market. The regions covered in the hot tobacco market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the hot tobacco market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Canada, Spain.

The hot tobacco market consists of sales of heat not burn (HNB) tobacco., infused/hybrid heat not burn (HNB) tobacco devices, heat not burn (HNB) tobacco consumables, heat not burn (HNB) tobacco sticks, and heat not burn (HNB) tobacco capsules & cartridges. Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

Hot tobacco, also referred to as heated tobacco, heat-not-burn tobacco, or hybrid tobacco, is known for producing aerosols containing nicotine and various chemicals. Users inhale these aerosols through the mouth, and these products involve the heating of specific tobacco items at temperatures below combustion levels. By doing so, hot tobacco products release flavors with nicotine, providing users with the experience of enjoying tobacco without the process of combustion.

The primary categories of hot tobacco products include Heated Tobacco Products (HTPs), direct/indirect heating HNB tobacco, infused/hybrid HNB tobacco devices, HNB tobacco consumables, HNB tobacco sticks, and HNB tobacco capsules & cartridges. HNB tobacco devices are designed to release vapor with nicotine and tobacco flavors without the typical signs of combustion, such as fire, smoke, and ash. These products come in various forms, including devices, capsules, and vaporizers. Distribution channels for hot tobacco products include retail stores and online websites.

The hot tobacco research report is one of a series of new reports that provides hot tobacco statistics, including hot tobacco industry global market size, regional shares, competitors with hot tobacco share, detailed hot tobacco segments, market trends, and opportunities, and any further data you may need to thrive in the hot tobacco industry. This hot tobacco research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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