1 Global Heat-Not-Burn Tobacco Products Market Size (Value) and CAGR (2024-2033)
The global Heat-Not-Burn Tobacco Products market is projected to experience significant growth in the coming years. In 2024, the total market value is estimated to reach USD 17,557.65 million, with a Compound Annual Growth Rate (CAGR) of 16.1% from 2024 to 2033.
Heat-Not-Burn Tobacco Products are electronic devices that heat processed tobacco to produce a vapor containing nicotine, chemicals, additives, and flavorings, without combustion. These products, offered by major tobacco companies, typically consist of a holder and tobacco sticks, plugs, or capsules, and are heated using an electronically controlled element.
Figure Global Heat-Not-Burn Tobacco Products Market Size (M USD) and CAGR 2024-2033
2 Heat-Not-Burn Tobacco Products Market Growth Drivers and Challenges
The Heat-Not-Burn Tobacco Products market is experiencing a phase of significant growth, driven by a multitude of factors and simultaneously facing several challenges.
One of the primary drivers is the shift in consumer behavior towards healthier alternatives to traditional smoking. HNB products, which heat tobacco to a lower temperature than combustion, emit significantly fewer harmful chemicals compared to cigarettes, appealing to health-conscious consumers.
The integration of technology in HNB devices, such as smartphone pairing for customized settings, has enhanced the user experience. These devices offer features like temperature control and flavor customization, which are attractive to tech-savvy consumers.
Major tobacco companies are investing heavily in the research and development of HNB products. This investment has led to the innovation of new products and the expansion of existing ones into new markets.
In some countries, HNB products are taxed at a lower rate than traditional cigarettes, making them more affordable and thus driving their adoption.
Despite claims of reduced harm, there is a lack of comprehensive, independent research on the long-term health effects of using HNB products, which creates uncertainty and skepticism among consumers and regulators.
The market faces stringent regulations in many regions, with some countries imposing bans or strict controls on the sale and marketing of HNB products, limiting their accessibility and appeal.
There is significant opposition from public health advocates who argue that HNB products may normalize smoking behavior and potentially act as a gateway to traditional cigarette use, especially among youth.
Economic downturns can impact disposable income, affecting the sales of HNB products, which are often priced higher than conventional tobacco products.
The market also faces competition from other nicotine delivery systems, such as e-cigarettes and smokeless tobacco products, which can dilute the market share of HNB products.
3 Heat-Not-Burn Tobacco Products Emerging Market Trends and Consumer Preference Analysis
Emerging market trends show a growing popularity of Heat-Not-Burn Tobacco Products Emerging in regions like Asia-Pacific, Latin America, and the Middle East, alongside developed markets. Governments in these regions are increasingly supportive of HNB products due to their potential health benefits and tax revenue generation.
Consumer preference analysis reveals that health-conscious and tech-savvy younger demographics are more inclined towards HNB products, which offer smart features, diverse flavors, and a sense of community. Women consumers, in particular, show a preference for products with sleek designs, feminine colors, and a variety of flavors.
4 Global Heat-Not-Burn Tobacco Products Market Size and Share by Type in 2024
In 2024, the global Heat-Not-Burn Tobacco Products market is segmented into two main types: Devices and Capsules. Devices, which do not contain tobacco and are purchased separately, are expected to have a market size of USD 1516 million, while capsules, which contain tobacco and are heated in specially designed devices, are projected to dominate the market with a size of USD 16042 million.
The capsules segment is anticipated to maintain its majority share due to its convenience and the variety of flavors it offers. The devices segment, however, is expected to see growth due to technological advancements and the introduction of new products that can be paired with smartphones for customized settings.
The average price for devices is projected to be USD 39216 per thousand units, while for capsules, it is USD 75 per thousand units. This detailed breakdown highlights the significant role of capsules in the HNB tobacco products market, underlining the preference for tobacco-based HNB options globally.
Table Global Heat-Not-Burn Tobacco Products Market Size and Share by Type in 2024
Type | Market Size (M USD) 2024 | Market Share 2024 |
Devices | 1516 | 8.63% |
Capsules | 16042 | 91.37% |
5 Global Heat-Not-Burn Tobacco Products Market Size and Share by Application in 2024
The global Heat-Not-Burn Tobacco Products market is anticipated to witness a significant expansion in the coming years, with different applications playing a crucial role in driving this growth.
Supermarket and Convenience Store: With a projected market size of USD 9,168 million in 2024, the supermarket and convenience store sector is expected to dominate the HNB tobacco products market. This can be attributed to the widespread availability and convenience these stores offer to consumers, making HNB products accessible to a larger customer base. The segment is also projected to grow at a CAGR of 16.84% from 2020 to 2033, indicating a strong growth trajectory.
Tobacco Store: The tobacco store application is forecasted to have a market size of USD 4,631 million in 2024. As specialized retailers, tobacco shops cater to a niche market demand for HNB products, offering a variety of choices and often providing a more personalized shopping experience. The segment is expected to grow at a CAGR of 18.96% from 2020 to 2033, showcasing the potential for robust expansion in this area.
Online: The online application is predicted to reach a market size of USD 1,953 million in 2024. The convenience of online shopping, coupled with the ability to reach a global audience, positions this segment as a significant player in the HNB market. The online segment is projected to grow at the fastest CAGR of 20.64% from 2020 to 2033, reflecting the increasing preference for e-commerce in the tobacco industry.
Table Global Heat-Not-Burn Tobacco Products Market Size and Share by Application in 2024
Application | Market Size (M USD) 2024 | Market Share 2024 |
Supermarket and Convenience Store | 9168 | 52.22% |
Tobacco Store | 4631 | 26.37% |
Online | 1953 | 11.12% |
Others | 1806 | 10.29% |
6 Global Heat-Not-Burn Tobacco Products Market Size and Share by Region in 2024
The global Heat-Not-Burn Tobacco Products market is poised for significant growth, with various regions exhibiting distinct market sizes and growth trajectories.
Europe: Europe is projected to have the largest market size, with an estimated value of USD 8,338 million in 2024. The region’s mature tobacco market, stringent smoking regulations, and a health-conscious consumer base contribute to the adoption of HNB products.
China: With a market size of USD 612 million in 2024, China is expected to be a significant player in the HNB market. The country’s large population, growing middle class, and increasing health awareness are driving the demand for less harmful tobacco alternatives.
United States: The United States is anticipated to have a market size of USD 289 million in 2024. The market is influenced by the presence of major tobacco companies, strict regulations, and a consumer shift towards reduced-risk products.
Japan: Japan’s market size is projected to be USD 4,399 million in 2024. As an early adopter of HNB technology, Japan has a well-established consumer base for these products, reflecting the country’s technological advancements and health consciousness.
Southeast Asia: Southeast Asia is expected to have a market size of USD 1,977 million in 2024. The region’s economic growth, youthful population, and health consciousness are contributing to the rapid adoption of HNB products.
Latin America: Latin America’s market size is projected to be USD 194 million in 2024. The region is experiencing growth due to increasing disposable incomes and a shift towards less harmful tobacco consumption methods.
Figure Global Heat-Not-Burn Tobacco Products Market Share by Region in 2024
7 Major Players in Global Heat-Not-Burn Tobacco Products Market
7.1 Philip Morris International Inc.
Company Profile: Philip Morris International Inc. (PMI) is a leading international tobacco company with a rich history dating back to 1847. Headquartered in Switzerland, PMI operates on a global scale, offering a diverse portfolio of products beyond traditional tobacco and nicotine sectors.
Business Overview: PMI is committed to delivering a smoke-free future and has invested over USD 10.5 billion in developing, substantiating, and commercializing innovative smoke-free products. With the acquisition of Swedish Match, PMI has expanded its presence in oral nicotine delivery, further solidifying its position as a global smoke-free champion.
Product Offered: PMI’s flagship HNB product is IQOS, a tobacco heating system that has become the number one international nicotine brand. The company’s product lineup also includes ZYN, further diversifying its smoke-free offerings.
2024 Revenue and Gross Margin: In 2024, PMI’s HNB tobacco products are projected to generate a revenue of USD 12,126 million with a gross margin of 64.36%.
7.2 Japan Tobacco Inc.
Company Profile: Established in 1985, Japan Tobacco Inc. (JTI) is a global manufacturer of tobacco products, with its headquarters in Japan. The company has a broad product range, including tobacco, pharmaceuticals, and processed foods.
Business Overview: JTI is focused on the manufacture and sale of tobacco products and is actively investing in the research and development of new products, including HNB tobacco products. The company aims to cater to the evolving needs of adult consumers seeking alternatives to traditional smoking.
Product Offered: JTI markets its HNB products under the Ploom brand, which includes the Ploom X device and heated tobacco sticks. These products are designed to provide a distinctive, smooth, and rich tobacco taste without smoke, smoke smell, or ash.
2024 Revenue and Gross Margin: For the year 2024, JTI’s HNB tobacco products are expected to achieve a revenue of USD 1,587 million, with a gross margin of 58.62%.
7.3 British American Tobacco Plc
Company Profile: British American Tobacco Plc (BAT), established in 1902, is a global leader in the tobacco industry with its headquarters in the UK. The company has a worldwide sales reach and is known for its comprehensive portfolio of cigarette brands and other tobacco products.
Business Overview: BAT is engaged in the production, marketing, and sale of cigarettes, nicotine products, vapor, and tobacco-heating products. The company is committed to providing reduced-risk products and has been investing in the development of HNB products as part of its portfolio.
Product Offered: BAT’s HNB product offering includes the glo brand, which comprises an electronic handheld device and specially designed Neostik rods containing homogenized tobacco. The glo product line is positioned as a less risky alternative to smoking.
2024 Revenue and Gross Margin: In 2024, BAT’s HNB tobacco products are forecasted to record a revenue of USD 1,392 million, accompanied by a gross margin of 64.65%.
