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Heat Not Burn:A Smoke-free Future is Awaiting


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Heat Not Burn:A Smoke-free Future is Awaiting

  • 2019-03-18

Anti-smoking campaign promoted by the governments and civil society organizations in the world has attracted more and more notice,sales of traditional rolling tobacco fell in many countries,including Japan,things have changed when PMI rolled out IQOS in Japan.

According to news from PMI,it took more than 400 scientists,  2 billion dollars and near 10 years to create such a revolutionary device based on heat not burn technology,it was feted among smokers the moment introduced,and quickly cheered up the stagnant tobacco market.The market share of heat not burn product kept rising in 2016 and the conversion ratio reached 70%,which makes it stand out among many other tobacco products,it won a market share of 2.7% in Japanese tobacco market,the popularization of heat not burn device has also pushed next generation industry to the top,such phenomenon has also drawn the attention of more and more tobacco manufacturers and venture capitals,the Japanese market has become a competitive strategic location to the whole industry.

heat not burn device

Just as the analyst of Credit Suisse said,heat not burn product was branching out in the Japanese market.According to data from Euromonitor International,since heat not burn product was rolled out in April 2016,its market share in Japan has risen to 2.7%,about 100,000 smokers in Japan have already switched to heat not burn device,conservatively speaking,the popularity of heat not burn product has also advanced the sales of heatsticks,which brought a rose in turnover.Among the first 10 markets which heat not burn product was rolled out,the Japanese market performance was the best,and the conversion ratio in Switzerland and Italy has also reached 68% and 70%,respectively.

IQOS’s production base is in Malaysia,the popularity of such device in Japan was totally unexpected,speaking of product experience,the conversion ratio can tell.PMI has launched the heat not burn project since  World Health Organization passed the 《The Framework Convention on Tobacco Control》,PMI has also built a factory in Italy as a pilot project .At present,there are more than 400 of PMI’s R&D team in Switzerland,with the effort of 300 scientists,it has been proved that heat not burn product can deliver a mouthful of nicotine without harmful chemicals,it’s healthier than traditional rolling tobacco.Before IQOS go public,PMI and Reynolds had been in vain trying to seek a breakthrough in sales growth.For example,Reynolds US’s subsidiary R.J Reynolds(Premier 1988;and the latest Revo 2014,but it was ended after 5 month of trial sale in Wisconsin,lack of marketing support and lower sales than expected.

heat not burn tobacco device

PMI has also rolled out Accord(1998) and Heatbar(2007) in this field,after 10 tears of research,heat not burn technology has been improved a lot,next generation product became a reality,besides,consumers today care more about health,the invention of heat not burn product and be claimed as a good timing,by the time heat not burn product entered market,it was just the turning point of electric cigarette,some smokers switched to traditional rolling tobacco again.According to Euromonitor International’s marketing analysis,the sales of electric cigarette took a snow dive,researcher has reduced the CAGR of electric cigarette in the next 5 years from 114% to 57%.

heat not burn tobacco device

Japan is not just the greatest tobacco market in the world with more than 20 million smokers,consumers in Japan are also willing to try new product and technology.With the upcoming Tokyo Olympics in 2020,the range of smoking ban in public area keeps expanding,smokers ans allowed to smoke only in particular area.By the same time,consumers aare getting more and more sensitive about health risk,which helps PMI establish the market,it;s expected that heat not burn product will become a flagship of PMI.

Compared with electric cigarettes,heat not burn product is more compatible,convenient,hence you will not bother others when smoking,Moreover,Japan strictly restricted the trade and import of E-Cigs,so heat not burn product took the place of electric cigarette and Japan has also become the first country to put IQOS on sale.

It’s predicted that compared to the advantage of electric cigarette and traditional rolling tobacco,heat not burn industry will explode in the future,in order not to lose its market share,traditional tobacco manufacturers will take action to change,all for a good cause.

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