IQOS: The Future Rising Star
As traditional tobacco loses share, new tobacco categories are growing fast. By 2030, cigarettes may account for under 90% of the market, with smokeless products like vaping devices and heated tobacco taking the rest.
1. The market share of traditional tobacco continues to shrink, while new tobacco products are growing rapidly: (1) By 2030, the market share of traditional tobacco is المتوقع to fall below 90%, with the remaining 10% divided among new tobacco products; (2) New tobacco products mainly include smokeless oral products, vaping devices, and heated tobacco products. Their key features are that they do not require combustion, reduce harmful substances, still provide nicotine to satisfy consumers’ physiological needs, and lessen the impact on the surrounding environment and people; (3) Represented by IQOS, heated tobacco products have continued to improve through long-term R&D and capital investment, and have already gained consumer recognition.
2. IQOS offers a strong user experience, and its harmful effects are significantly lower than those of traditional tobacco: (1) Compared with vaping devices, IQOS can deliver a stronger nicotine hit and a taste closer to that of traditional cigarettes; (2) IQOS greatly reduces harmful substances produced by combustion, and compared with traditional tobacco, its harmfulness is reduced by more than 90%.
3. IQOS has been well received in the market, and its growth trend is promising: (1) IQOS has currently expanded into 26 countries worldwide and is expected to be launched in the U.S. in the future; (2) IQOS has achieved nationwide coverage in Japan, with its market share continuing to rise, reaching 7.1% in the first quarter of 2017. In the European market, its absolute market share remains relatively low due to incomplete sales channel rollout, but the growth trend is clear.
4. Reasons for IQOS’s success: (1) Compared with other major competing products, IQOS had a longer R&D cycle and greater capital investment; (2) It seized on the characteristics of the Japanese market, where tobacco control was becoming stricter and smokers were becoming more health-conscious, making Japan its launch market; (3) It advanced step by step with multiple marketing strategies tailored to Japanese consumer preferences.
5. The market outlook is strong, and major manufacturers are moving quickly to establish their positions: (1) IQOS is regarded as the product that has come closest to success in the commercialization of reduced-harm tobacco products, with the potential to change the trajectory of the tobacco market; (2) In 2017, Philip Morris International invested $1.7 billion to expand production capacity worldwide to meet growing demand; (3) While strongly supporting IQOS, Philip Morris International continues to develop other heated tobacco products; (4) Other tobacco giants, including British American Tobacco and Japan Tobacco, have also launched and heavily promoted their own heated tobacco brands.
2. IQOS offers a strong user experience, and its harmful effects are significantly lower than those of traditional tobacco: (1) Compared with vaping devices, IQOS can deliver a stronger nicotine hit and a taste closer to that of traditional cigarettes; (2) IQOS greatly reduces harmful substances produced by combustion, and compared with traditional tobacco, its harmfulness is reduced by more than 90%.
3. IQOS has been well received in the market, and its growth trend is promising: (1) IQOS has currently expanded into 26 countries worldwide and is expected to be launched in the U.S. in the future; (2) IQOS has achieved nationwide coverage in Japan, with its market share continuing to rise, reaching 7.1% in the first quarter of 2017. In the European market, its absolute market share remains relatively low due to incomplete sales channel rollout, but the growth trend is clear.
4. Reasons for IQOS’s success: (1) Compared with other major competing products, IQOS had a longer R&D cycle and greater capital investment; (2) It seized on the characteristics of the Japanese market, where tobacco control was becoming stricter and smokers were becoming more health-conscious, making Japan its launch market; (3) It advanced step by step with multiple marketing strategies tailored to Japanese consumer preferences.
5. The market outlook is strong, and major manufacturers are moving quickly to establish their positions: (1) IQOS is regarded as the product that has come closest to success in the commercialization of reduced-harm tobacco products, with the potential to change the trajectory of the tobacco market; (2) In 2017, Philip Morris International invested $1.7 billion to expand production capacity worldwide to meet growing demand; (3) While strongly supporting IQOS, Philip Morris International continues to develop other heated tobacco products; (4) Other tobacco giants, including British American Tobacco and Japan Tobacco, have also launched and heavily promoted their own heated tobacco brands.
