Global Heat-not-burn (HNB) Tobacco Market by Types (Use Tobacco Stick and Use Loose-leaf), Sales Channels (Supermarket, Tobacco Store, and Online), and Regions (North America, Latin America, Europe, Asia Pacific, and Middle East & Africa)

Market Outlook:

The global heat-not-burn (HNB) tobacco market was valued at USD 8,148.4 Million in 2019 and is projected to reach USD 51,741.2 Million by 2027, expanding at a CAGR of 27.2% during the forecast period. The demand for heat-not-burn (HNB) tobacco is growing due to increasing smoking population. The COVID 19 outbreak has slowed down production and sales activities and reduced the demand for HNB tobacco due to health concerns during the pandemic. COVID-19 has hampered the sales of HNB across the many sales channels such as supermarkets and tobacco stores, thus impeding the HNB tobacco market.

HNB tobacco products are electronic devices that use electric heating elements to heat tobacco to produce aerosols containing nicotine and other chemicals, which are inhaled by users through the mouth. HNB tobacco products also contain non-tobacco additives, which are often flavored. The HNB products are similar to conventional cigarettes. These products use specially designed devices similar to cigarettes for heating the tobacco inside them. Commercially available HNB systems such as Glo or IQOS include a charger, a holder, tobacco sticks, plugs, and capsules. Tobacco sticks are heated with an electronically controlled heating element that is inserted into the holder. Other products, including iFuse or Ploom Tech, produce vapor from a non-tobacco source and pass it through a tobacco plug to absorb flavor and nicotine. HNB tobacco products fall in a niche between combustible tobacco cigarettes and electronic cigarettes that vaporize nicotine suspended in humectants.

Market Dynamics
According to the US Food and Drug Administration (FDA) and the World Health Organization (WHO), smoking population has been increasing rapidly in the recent years and diseases related to lungs such as cancer is growing rapidly, especially people who ages between 30 and 45. HNB tobacco products release lower levels of monoxide, carbon, tar, and other chemicals causing cancer than regular cigarettes, and hence they are preferred over conventional tobacco products. Moreover, cost-effectiveness of these products is fueling its demand across different geographical regions. HNB tobacco devices and capsules are relatively more economical than conventional tobacco products due to increasing taxes on traditional cigarettes that have raised their prices considerably.

Government regulations regarding the use of tobacco is one of the key factors driving the growth of HNB tobacco products market. In countries such as Japan, traditional cigarette or e-cigarettes containing nicotine are banned. Such regulations are fueling the demand for HNB tobacco products in the recent years. Additionally, HNB tobacco products are considered safer than conventional tobacco products, which in turn, is boosting the demand for these products.

According to a recent study conducted by FDA and WHO researchers, it has been proven that the consumption of tobacco through HNB tobacco products has similar harmful effects as a traditional tobacco product such as cigarettes. Additionally, a study conducted by the US researchers showed that smoke from HNB tobacco products has same nicotine levels as conventional cigarette smoke. Nicotine, the highly addictive substance found in tobacco, is unsafe for the youth and can harm infant and adolescent brain development. Some research has proved that it is a misperception that HNB is not as harmful as traditional cigarettes.

The chemical and their levels released by HNB tobacco products are the same as a conventional tobacco product such as cigarettes. HNB tobacco products can be just as harmful for the human heart as regular cigarettes. HNB tobacco products can be just as harmful as regular cigarettes. Non-users can be exposed to harmful substances through second-hand smoke.

Segmental Outlook

By Types
The global heat-non-burn tobacco products market is bifurcated into use tobacco stick and use loose-leaf. The use tobacco stick segment is projected to expand at a significant CAGR during the forecast period. This segment is expected to expand at a high CAGR during the forecast period, in terms of revenue generation. The convenience of this product type is one of the key factor boosting the growth this segment. The factors such as easy to use nature and less efforts requirement as compared to Use Loose-leaf is expected to be the major parameter driving the growth of this segment. The use tobacco stick segment holds a key share of the market, in terms of revenue generation, in last few years and this trend is expected to continue during the forecast period due to high adoption of use tobacco stick.

By Sales Channels
Based on sales channels, the market is segmented into supermarket, tobacco store, and online. Revenue generation from the tobacco store segment is expected to register high incremental opportunity during the forecast period. The HNB tobacco products are one of the latest products for smokers and their demand is expected to rise significantly during forecast period.

Regional Outlook

In terms of regions, the global heat-non-burn (HNB) tobacco products market is classified as North America, Europe, Latin America, Asia Pacific, and Middle East & Africa. The market in Asia Pacific is projected to expand at a significant CAGR during the forecast period. Japan is expected to be an attractive country for the global HNB tobacco product market. The adoption of HNB tobacco product in this country is higher than in other countries due to dense presence of smokers.

The market in China is estimated to expand at a significant CAGR during the forecast period and reach USD 4 billion by the end of 2027. Increasing focus of tobacco product suppliers on producing next generation tobacco products is expected to drive the market in China. Currently, China is known for its monopoly in the tobacco products industry through China Tobacco Company the import of tobacco products from other countries is highly prohibited and this makes the China Tobacco company one of the prominent players in the market. Japan holds a key share of the market, in terms of consumption and revenue generation, from the sale of HNB tobacco products. Smokers present in Japan easily adopt advanced tobacco products including HNB, e-cigarettes, and others. Large manufacturers are beginning to sell their products from Japan only. Dense presence of smokers and busy working life are some factors boosting the demand for smokers.

Competitive Landscape

• Key players in the market include Philip Morris International, British American Tobacco, Japan Tobacco, Imperial Brands, Altria, China tobacco, Korea Tobacco & Ginseng Corporation, VMR Products. These players are considered as key manufacturers of the market based on their different varieties of product availability, regional presence, better supply chain management system, and increasing demand for the products.
• Players are adopting strategies such as product development, geographical expansion, and mergers & acquisition to increase the demand for HNB tobacco products.

Key Benefits for Industry Participants & Stakeholders

• In-depth analysis of the global heat-not-burn (HNB) tobacco products market
• Historical, current, and projected market size in terms of value and volume
• Potential & niche segments and regions exhibiting promising growth covered
• Industry drivers, restraints and opportunities covered in the study
• Recent industry trends and developments
• Competitive landscape & strategies of key players
• Neutral perspective on global heat-not-burn (HNB) tobacco products market performance