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Will heatde tobacco Product be the Hope of the Tobacco Industry in the Future?

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Will heatde tobacco Product be the Hope of the Tobacco Industry in the Future?

  • 2019-12-06

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 GLO, a kind of tobacco heating device, has been increasing.

tobacco heating Products

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

According to reports, the sales of BAT’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.

Heated tobaccoAccording to Shane MacGuill, director of Euromonitor International Tobacco Research, “The continued growth of e-cigarettes, especially the emergence of heatde tobacco 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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