Report Says Global Heated Tobacco Market Will Grow to USD 8.2 Billion in 2023
According to news on March 29 from foreign media, The Business Research Company’s Global Heated Tobacco Market Report 2023 states that the global heated tobacco market will grow from USD 7.8 billion in 2022 to USD 8.2 billion in 2023, at a compound annual growth rate (CAGR) of more than 4%.
The global heated tobacco market is expected to reach USD 9.5 billion by 2027, with a CAGR of more than 3%. Looking ahead, rising disposable income and an increase in new product launches will drive growth in the heated tobacco market.
Global Heated Tobacco Market Segmentation—
By product category: HNB tobacco devices, direct/indirect-heated HnB tobacco, infused/blended HnB tobacco devices, HnB tobacco consumables, HnB tobacco sticks, HnB tobacco capsules, and cartridges
By type: devices, capsules, vaporizers
By distribution channel: retail stores, online
The greatest opportunity in the heated tobacco market by product segment will be in HnB tobacco devices; by type, it will be in the vaporizer segment; and by distribution channel, it will be in retail stores. The heated tobacco market in the United States is expected to post the largest growth, reaching USD 5.4 billion.
The global heated tobacco market is highly concentrated, with several large companies operating in the sector. In 2021, the top ten competitors accounted for 78.6% of the total market. Philip Morris International was the largest competitor, with a 54.8% market share, followed by British American Tobacco, Japan Tobacco International, KT&G, Imperial Brands, Altria Group Inc, China Tobacco International, vapor tobacco manufacturing, Shenzhen Yukan Technology Co., Ltd., and mysmok Electronics.
Major companies operating in the heated tobacco market are leveraging advanced technology to develop innovative products in order to strengthen their market positions. The launch of new heated tobacco products is a key trend that is becoming increasingly popular in the market.
For example, in November 2022, U.S.-based tobacco company Philip Morris International (PMI) launched a more affordable version of its leading heated tobacco product, BonDS by IQOS, to accelerate its vision of a smoke-free future. It was initially piloted in one city in the Philippines, providing an opportunity to address consumer purchasing barriers, including affordability, while still delivering genuine tobacco taste satisfaction.
Like all smoke-free products, IQOS BonDS is intended for adults who would otherwise continue smoking and are looking for a better alternative.
According to the heated tobacco market analysis, other strategies adopted by heated tobacco companies based on market trends include focusing on artificial intelligence, investing in heated tobacco products, pursuing technological advancements, and forming strategic partnerships and collaborations.
