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Thoughts on the Development of Heat-Not-Burn Market

Thoughts on the Development of Heat-Not-Burn Market

  • 2018/10/18

Speaking of new tobacco products, we can often see a variety of reports on e-cigarettes on different websites and forums, but it is rare to see news about heat-not-burn products. And you can’t even find a professional forum for products of this kind. One of the most important reasons is that today's e-cigarette industry has been fully blossomed. All brands and manufacturers have their own main products of different characteristics, and they continue to innovate at the same time. Everyone works together to promote the development of the entire e-cigarette industry. In contrast, IOQS has always been the leading brand among all HNB products; other companies are very difficult to surpass it in terms of market promotion, product development, and user experience. In Japan, for example, IQOS now accounts for more than 80% of Japan's heat-not-burn market. IQOS leads other companies too far, resulting in the abnormal development of the entire industry. When you search online for heat-not-burn, the first thing that comes to your attention won’t be others but IQOS. This is a very frustrating news. The development of an industry cannot pin all hopes on the only one brand. IQOS's sales slowdown in the first quarter of 2018 in Japan led to a wait-and-see attitude for investors across the whole market, which already speaks volumes.

Since HNB products perform better than electronic cigarettes in simulating smoking experience, it may replace electronic cigarettes as the best alternatives in the future. In recent years, more and more enterprises have begun to set their foot in heat-not-burn industry. For instance, British American Tobacco rolled out GLO on the market; Japan Tobacco International also launched Ploom Tech; KT&G, the largest cigarette manufacturer in Korea, held a press conference in Seoul for the launch of its tobacco heating device lil. And in China, MySmok Tech also launched its own heat-not-burn devices.

Perhaps every tobacco company believes that the combustible cigarette market will one day lose its vitality, which is why they are competing to enter the field of electronic cigarettes and tobacco heating products. Heat-not-burn technology will greatly extend the life cycle of traditional cigarette manufacturers, because it uses real tobacco, which will enable tobacco manufacturers to continue to profit, and is likely to effectively eliminate the fierce competition in the field of e-cigarettes. But at the same time, more companies and brands need to join and participate in the HNB market, only in this way products of this kind can be gradually improved in the competitive environment.

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