The global heated tobacco products market size is expected to reach USD 77.61 billion by 2025, according to a new report by Grand View Research, Inc. It is anticipated to expand at a CAGR of 52.56% during the forecast period. The growth is driven by rising consumer demand for reduced-risk tobacco products as they are claimed to be less harmful to health. Moreover, rise in marketing campaigns coupled with easy product approvals by the U.S. Food and Drug Administration (FDA) and the equivalent governing bodies from Europe and Asia is anticipated to fuel the product demand.
The market is driven by high growth of tobacco sector in Asia and North America. Rise in middle class population coupled with increasing disposable income is projected to drive the demand for Heated Tobacco Products (HTPs). Rising awareness regarding healthy lifestyle and availability of healthier alternatives is anticipated to drive the market growth. Moreover, growing purchasing power of consumers is anticipated to drive the adoption of both stick and leaf products over the forecast period.
Leading manufacturers operating in U.S., Italy, Germany, Croatia, and South Africa among others countries engage in product launches with increasing focus on specialty and premium HTPs. Advertising campaigns, rising number of tobacco shops, and marketing strategies by the FDA itself are anticipated to create growth opportunities for the heated tobacco products market.
North America is anticipated to rise due to rising consumer awareness along with growing product launches from the leading manufacturers. For instance, in April 2019, Philips Morris International entered into the U.S. market with its iQOS heated tobacco products. Asia Pacific, on the other hand, is anticipated to witness significant rise in product demand on account of the ban on E-cigarettes in the key countries. Rising investments from leading players are anticipated to create growth opportunities in the regional market during the forecast period.
Manufacturers engage in product launches and expanding their manufacturing capacity gain greater market share. Key players including Philips Morris International, Japan Tobacco International, and British American Tobacco engage in business strategies, such as acquisitions, mergers, online sales, and capacity expansion.
Further key findings from the report suggest:
- The stick product segment is projected to ascend at a CAGR of around 51.0% over the forecast period
- Offline segment held the leading market share of over 91.0% in 2018
- Asia Pacific held the leading heated tobacco products (HTPs) market share of around 73.0% and is anticipated to continue its dominance over the forecast period
- The heated tobacco products market is highly competitive in nature with the presence of major players including Philips Morris International, Japan Tobacco International, and British American Tobacco.
- Manufacturers focus on new product launches, capacity expansion, and product innovation to estimate existing and future demand patterns from the upcoming product segments
About Grand View Research
Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, we offer market intelligence studies ensuring relevant and fact-based research across a range of industries, from technology to chemicals, materials and healthcare.
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