Heat-not-Burn Market

The global heat-not-burn market size is anticipated to register a considerable CAGR during the forecast period, 2021-2028. The growth of the market is attributed to the continuous decline in traditional cigarette sales with rising taxes and prohibition on cigarettes across different countries.

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Heat-not-burn or smokeless tobacco products are electric devices, which unlike e-cigarettes, it contains tobacco leaves. When it is heated, it produces nicotine vapor, which is inhaled by adult smoker. These are different from traditional cigarettes in the mechanism of heating. In heat-not-burn devices, the tobacco leaves are heated up to 350℃, compared to conventional cigarettes that burn and combust at up to 900℃. In spite of this, the temperature in heat-not-burn products is although high enough for harmful chemicals to be inhaled and vaporized. This devices claim to have low presence of additives and nicotine. Sometimes, the devices also contains additives, which are not present in tobacco, including flavored chemicals. These devices produce a vapor, which contains nicotine so, these devices can be used numerous times. These products are generally less harmful to human body then traditional cigarettes, but are not risk free.

The COVID-19 pandemic outbreak had negative impact on the market. During the pandemic, lockdown imposed by government bodies across the globe forced companies to stop the manufacturing, distribution, and sale of non-essential goods, including tobacco products. Additionally, amidst the pandemic people were encouraged by non-government organizations, government, and healthcare workers to quit smoking and to stop using all types of tobacco products, such as heat-not-burn devices, traditional cigarettes, and e-cigarettes, to protect their health, which is hampering the market.

Market Trends, Drivers, Restraints, and Opportunities

• Rising demand for possibly reduced risk products across the globe is one of the key factors driving the market growth.
• Rising awareness among people about harmful health effects of chewing tobacco is projected to boost the market during the forecast period.
• Surging adoption of e-cigarettes, as they have lesser amount of toxic materials acts as a major challenge that can restrict the market growth in the coming years.
• Stringent regulation imposed by local authority across many regions is expected to hamper the market growth during the projected timeline.
• Escalating sale of heat-not-burn devices on digital platform and marketing promotions by the manufacturers is anticipated to create significant growth opportunities for the market.

Scope of the Report

The report on the global heat-not-burn market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Market Segment Insights

Retail store segment to expand at robust growth rate

Based on distribution channels, the global heat-not-burn market is bifurcated into online and retail store. The retail store segment is further fragmented into newsstand, drug store, tobacconist store, grocery store, and convenience store. The retail store segment is anticipated to expand at robust growth rate during the forecast period attributed to the stores enable users to test the device before making the purchase decision and provision of smoking zones in clubs and organizations. However, the online segment is projected to expand a considerable CAGR during the forecast period owing to that it offers large variety of products, competitive pricing, and easy accessibility of product.

Surging adoption drives the sticks segment

On the basis of components, the market is divided into vaporizers, loose-leaf, capsules, sticks, heating module, and others. The sticks segment is projected to register a significant growth during the projected period owing to the surging adoption of tobacco sticks in heat-not-burn devices as a superior product. Additionally, these stick come in various additives and flavors other than combustible cigarette products. On the other hand, the loose-leaf segment is anticipated to expand at a substantial growth rate in the coming years attributed to the easy manufacturing process, low, and effective prizing.

Asia Pacific to constitute a key market share

In terms of region, the global heat-not-burn market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asia Pacific is anticipated to constitute a key share of the market during the projected period owing to the changing lifestyle, rising disposable income, and growing consumption of IQOS brand devices in the region. However, the market of Europe is anticipated to grow at a rapid pace during the forecast period due to the presence of key global market players, regulatory bodies across the region are approving heat-not-burn devices from merchants, and increasing adoption of these devices among population in the region.

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Segments

• Online
• Retail Store
  • Newsstand
  • Drug Store
  • Tobacconist Store
  • Grocery Store
  • Convenience Store

• Vaporizers
• Loose-leaf
• Capsules
• Sticks
• Heating Module

• Asia Pacific
• North America
• Latin America
• Europe
• Middle East & Africa

• Japan Tobacco Inc.
• Imperial Brands plc
• British American Tobacco plc
• PAX Labs, Inc.
• Firefly Vapor
• Altria Group, Inc.
• Philip Morris International Inc.
• Korea Tobacco & Ginseng Corp.
• Shenzhen Yukan Technology Co., Ltd.
• Vapor Tobacco Manufacturing LLC

Competitive Landscape

Key players competing in the global heat-not-burn market are Japan Tobacco Inc.; Imperial Brands plc; British American Tobacco plc; PAX Labs, Inc.; Firefly Vapor; Altria Group, Inc.; Philip Morris International Inc.; Korea Tobacco & Ginseng Corp.; Shenzhen Yukan Technology Co., Ltd.; and Vapor Tobacco Manufacturing LLC. Companies are focusing on investment in R&D for development of technologically advanced products to maintain their competitive position in the market. Companies have been widely engaged in strategic partnership, merger & acquisition, new product launch, and collaborations to boost their market share and acquiring new buyers.

For instance, in June 2019, Japan Tobacco Inc., a Japan based cigarette manufacturing company announced a launch of countrywide sales of four types of Ploom TECH+ tobacco capsules and Ploom TECH+. The sales of new products started in around 2,000 tobacco retail stores and 57,000 convenience stores.