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Heat Not Burn Product Development Trend in 2019: A Promising Future

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Traditional tobacco——the sole Commodity in the world which does us no good while legalized for sales globally,there is nothing in the world so contrad

Heat Not Burn Product Development Trend in 2019: A Promising Future

  • 2019-10-10

Tobacco was originated in America,the Indians found materials which can excite the nerve system within it,the Indians would inhale the smoke during tribal council and other sacred activities,then it was introduced into Europe by the Spanish colonists.When the Spanish sailors were saw smoking,they shocked people in hometown,these sailors were described as dealing with Satan,but soon the effect of tobacco spread all over the world.

It was not until 18 centuries before tobacco was introduced into China.These years,with the fall of traditional tobacco sales and the rise of tobacco taxation in some developed countries,heat not burn product gets more and more popular.Multinational tobacco companies like BAT and JTI have already invested a lot in the R&D of next generation product.

Nowadays tobacco control has become an important policy target of many governmental health departments and international organization(etc:WHO.

Heat not burn product is typically different from conventional rolling tobacco,its type increases with the innovation of technology.It’s estimated that heat not burn product makes up 80% of the electric cigarette market,it can deliver a mouthful of nicotine but produce no harmful chemicals,no tar,ash or second-hand smoke.Before electric cigarette and heat not burn product was invented,next generational product department was set up by tobacco companies in reaction to government and all kinds of organizations,it developed some alternatives to rolling tobacco like snuff and nicotine chewing gum.

Since the flavor of these products is so different from rolling tobacco,the public didn’t show great interest in them,it was not until the commercialization of electric cigarette in the beginning of the century and the popularization of heat not burn product in the last few years that more and more consumers noticed them.According to the present market landscape,heat not burn product remains the mainstream of heat not burn product consumption.

Heat not burn market has been developed rapidly,it can be interpreted from two aspects:Firstly,there are more and more people quitting smoking with the aim of a healthy lifestyle.According to official statistics,smoking rate in countries like UK,US,Canada and Japan fell by 5-10% in the last,and sales amount of tobacco in these countries has also decreased a lot.Hence tobacco companies have invested a lot in the R&D of next generation product.Secondly,more and more regulations have been imposed on tobacco globally,until then,177 parties have joined The WHO Framework Convention on Tobacco Control,which covered 80% of the world population,many countries have banned smoking in public area in accordance with the WHO convention.Under such background,heat not burn product can adapt to these regulations and meet the smokers’ demand,so the market demand rises rapidly.

Under the influence of supervision and consumer acceptance,the heat not burn market needs to be further expanded.The total scale of tobacco market in 2017 is 785.65 billion dollars,in which the scale of rolling tobacco fell from 715.69 billion dollars to 701.9 billion dollars,while the scale of heat not burn product rose from 2.23 billion dollars to 17.75 billion dollars,with a CAGR of 51.4%.

Generally speaking,the development of global heat not burn market can be summed up as the following:

Firstly,the sales of heat not burn product has been grown rapidly,according to official statistics by WHO,the utilization rate of heat not burn product in 44 countries is about 11%,in which adult male makes up 23%,adult female makes up 7%.As far as utilization rate is concerned,the Southeast Asian district ranks the first(adult male:36%.adult female:10%),in countries like Sweden and Yemen,the market share of heat not burn product even exceeds traditional rolling tobacco.

Secondly,heat not burn product has gradually become a new revenue growth opportunities to multinational tobacco companies.

Last but not the least,these multinational companies have all invested a lot in next generation product,including research,development and branding.What’s noticeable is that along with the popularity of heat not burn product rose from 0.29% to 2.26% in five years,heat not burn product was still banned in US,which is a great market.

Speaking of HNB product itself,the flavor of HNB tobacco is closer to traditional rolling tobacco,and can reduce health risk,WHO has also predicted that heat not burn product will draw more attention in the near future.

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