Japan Tobacco Steps Up Investment in Heated Tobacco Products
According to Nikkei Asia, Japan Tobacco will invest JPY 300 billion (USD 2.25 billion) in its heated tobacco products, including JPY 200 billion to market these heated tobacco products internationally. Last year, we were unable to invest because there wer
According to Nikkei Asia, Japan Tobacco will invest 300 billion yen (2.25 billion USD) in its heated tobacco products (HNB), with 200 billion yen allocated for marketing this heated tobacco product in international markets.
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"Last year, we were unable to invest due to a shortage of [heated tobacco] equipment caused by semiconductor shortages," quoted Japan Tobacco President Masamichi Terabatake. "By 2023, our procurement has returned to normal, and we are able to secure more than double the supply compared to last year."<\/div>
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Japan Tobacco (JT) plans to launch its new Ploom X device in over 10 countries/regions this year, aiming to cover at least 20 new countries/regions by the end of 2024. This product is currently only available in Japan and the UK and will debut in Italy this month.<\/div>
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To gain visibility, Japan Tobacco (JT) will invest in pop-up stores and digital sales, developing flavors that cater to the tastes of each market.<\/div>
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In the US, Japan Tobacco (JT) has formed a joint venture with Altria Group. The partners will seek FDA approval to launch Ploom in the US market by early 2025.<\/div>
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Although Japan Tobacco (JT)'s HNB division is currently operating at a loss due to long-term investments, the company expects to turn a profit by 2028 due to overseas growth.<\/div>
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JT will also invest in R&D to develop second and third generation Ploom X devices.<\/div>
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JT stated that global cigarette sales fell by 1.5% last year. In contrast, according to Euromonitor International, the global market for HNB grew by 17% last year, reaching 33.4 billion USD.<\/div>
