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Will Heat Not Burn Product be the Hope of the Tobacco Industry in the Future?


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Will Heat Not Burn Product be the Hope of the Tobacco Industry in the Future?

  • 2019-06-28

At the end of 2017, JTI purchased the Mighty Group, Philippine domestic cigarette maker, at 46.8 billion Philippine pesos. The purchase of JTI in the Philippines is considered to be an important step for the company to achieve further expansion in the Asia Pacific region. At present, its markets in the Asia-Pacific region face a relatively severe operating environment. In Malaysia, for example, Japan Tobacco International has closed its cigarette factories in the country by the end of 2017. In Japan, the sales of traditional cigarettes continue to decline, and the competition pressure brought by Philip Morris International’s IQOS, a kind of tobacco heating device, has been increasing.

Heat Not Burn Products

Before acquiring the Mighty Group, PMI and JTI had the vast majority of the market share in Philippines, which means the domestic cigarette market in Philippines will basically be controlled by PMI and JTI.

According to reports, the sales of PMI’s new tobacco products continued to increase in the first quarter of this year. At the same time, the sales of its traditional tobacco products have declined.

Philip Morris International has released the latest Scientific Update for Smoke-Free Products. The magazine regularly updates research results on the development and evaluation of a range of cigarette substitutes. Other chapters are said to include updates on the evaluation of each product in the Philip Morris International smoke-free product portfolio, recent breakthroughs in research and development, and a compilation of peer companies’ review of smokeless products this year. At the same time, Philip Morris International plans to launch iQOS in India. According to government sources, if PMI seeks opportunities to approach the government and discusses the devices that can help people quit smoking, the government will very possibly be open to their idea.

Heat Not Burn CigaretteAccording to Shane MacGuill, director of Euromonitor International Tobacco Research, “The continued growth of e-cigarettes, especially the emergence of heat not burn products as a viable alternative for smokers, is a major factor causing the decline in the sales of traditional cigarettes.” According to the company's research, tobacco heating devices will become the fastest-growing tobacco product in the next five years, with global sales reaching $15.4 billion by 2021, compared with $2 billion in 2016, an increase of 691%. As its name suggests, this next generation product only heats tobacco instead of burning it, and studies have found that the quantity and the level of harmful and potentially harmful substances produced by tobacco are greatly reduced.

It is estimated that by 2021, tobacco heating devices will occupy the major share in at least 35 markets, accounting for 3.5% of the total cigarette volume globally. The outlook for heated tobacco is strong and still increasing. It truly has become a new force in the global tobacco industry.

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