DUBLIN, Dec. 15, 2023 /PRNewswire/ — The “Global Heated Tobacco Products (HTP) Market (by Product Type, Distribution Channel, & Region): Insights and Forecast with Potential Impact of COVID-19 (2022-2027)” report has been added to ResearchAndMarkets.com’s offering.
The value of global HTP market is likely to reach US$5.16 billion by 2023, growing at a CAGR of 11.48%, during the forecasted period. In terms of volume, the global HTP market is anticipated to grow to 5053.51 ton in 2023.
The market for heated tobacco products has been consolidated. Rising individual income, rising health consciousness, expanding retail e-commerce, higher investment in research and development, and other factors are likely to boost overall market expansion over the forecasted period.
Driver: Decrease in Consumption for Cigarettes
Cigarettes contain tobacco leaves that are burned to produce smoke containing nicotine inhaled by the user. Value of tobacco market is rising overtime, indicating the rise in use of tobacco in the forecasted period but since people are consuming less and less cigarettes overtime, it must be the case that there is a shift from conventional cigarettes to alternative tobacco heated products (THP) which heat and not burn tobacco leaves to create an aerosol containing nicotine. Therefore, decrease in consumption of cigarettes is leading an increase in demand for HTP and hence boosting the growth of heated tobacco products (HTP) market.
Challenge: Rising Popularity of Alternative Tobacco Products
The global Heated tobacco products (HTP) market faces competition from other smokeless tobacco products like snus, chewing tobacco, moist snuff, and vaping products. Also, each country has its local variants of smokeless tobacco products.
For instance, In India, the local variants of smokeless tobacco products include gutkha, khaini, and zarda, which are quite popular among the masses, posing a serious threat to HTP market in these countries. Therefore, presence of different alternative products imposes a challenge for companies to sell heated tobacco products and strengthen their customer base.
There has also been an increasing popularity of vape products, e-cigarettes and e-hookahs which are battery powered devices and are considered to be even less harmful than heated tobacco products (HTP) as these devices vaporize liquid that contains nicotine to imitate conventional smoking and does not contain any real tobacco. Presence of these substitute devices can pose a challenge for heated tobacco products to establish their market and hence hindering the growth of HTP market.
Trend: Rise in Digital Advertising
There are many restrictions on tobacco advertisement on mediums such as televisions and newspapers in many countries, so digital advertisement on social media platforms is allowing them to educate and promote the benefits of using HTP devices to a large customer base.
Also, internet and social media have vast opportunities to reach potential consumers as by advertising and acknowledging the health risks of traditional cigarettes and describing new products as cleaner alternatives, people are shifting towards use of more of heated tobacco products. Therefore, high advertising and promotion by the companies will continue to boost the market demand for HTP and hence positively contributing to the growth of HTP market.
Segment Covered
By Product Type: In terms of product type, the report provides the bifurcation of the market into two segments: Leaf and Stick.
The stick segment held the largest share of the market value. Also, stick heated tobacco products market value is the fastest growing segment of global heated tobacco products market value owing to high adoption of HTPs as a premium product and the ease of use of tobacco sticks in comparison to conventional cigarettes.
By Distribution Channel: On the basis of distribution channel, the report further provides the segmentation of the global heated tobacco products market: Online and Offline.
The offline segment held the major share of the global heated tobacco products (HTP) market. On the other hand, online heated tobacco products market is the fastest growing segment of heated tobacco products market owing to rising e-commerce platforms and companies having their own online channels and websites, offering a wide range of products and new designs, incentivizing a gradual shift among consumers towards online purchase of heated tobacco products.
Geographic Coverage
North America held a major share in the market. Within North America, the US is leading the market owing to positive government initiatives and advertisement of HTP as a premium product by recognized brand names, attracting both young population and adult smokers who carry a strong preference for branded product and smoke tobacco to boost social image.
The North America heated tobacco products market, in terms of volume is also divided into two segments on the basis of distribution channel, namely, Offline and Online, where offline segment accounted for the major share of the market. Within Europe, Germany held the highest share of the market, whereas UK is expected to be the fastest-growing heated tobacco products market in the forecasted period.
Asia Pacific’s heated tobacco product market is divided into five regions based on geographical operations, namely, China, Japan, India, South Korea, and the Rest of Asia Pacific, where China held the largest share of the Asia pacific heated tobacco products market owing to huge variety of HTP brands released locally, high smoking tobacco population and favorable government initiatives.
Market Dynamics
Growth Driver
- Rising Income of Individuals
- Decrease in Consumption for Cigarettes
- Increased Investment in Research and Development (R&D)
- Rising Health Awareness
- Government Initiatives
Challenges
- Rising Popularity of Alternative Tobacco Products
- Lack of Scientific Proof
- Climate Change
- Stringent Regulations
Market Trends
- Rising Retail E-Commerce
- Rise in Digital Advertising
- Escalating influence of Partying and Pop Culture
Company Profiles
- British American Tobacco P.L.C. (BAT)
- Japan Tobacco Inc. (Japan Tobacco International)
- Altria Group Inc. (Altria)
- Korean Tobacco and Ginseng Corp. (KT&G)
- Imperial Brands PLC
- Philip Morris International Inc. (PMI)
- Vapor Tobacco Manufacturing LLC (3T Organic)
For more information about this report visit https://www.researchandmarkets.com/r/49lqjx
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