Tobacco giants are moving into Southeast Asia, with the heated noncombustible market to be explored

HNB (Heated Tobacco, also known as Heated Non-Burning) is gaining more and more popularity among smokers worldwide as a healthier tobacco product compared to traditional cigarettes.

Author:

Electronic Cigarette Public

HNB (heated tobacco, also known as heated non-burning), as a healthier tobacco product compared to traditional cigarettes, is gaining more and more smokers' favor worldwide. In order to meet smokers' demand for replacement cigarettes, private HNB brands are springing up in China around 2019, and local Chinese tobacco companies are also actively investing in technology research and development to launch their own brands. However, 2022 China's Measures for the Administration of Electronic Cigarettes clearly stipulates that heated tobacco is included in the management of cigarettes, and any market entity shall not illegally operate heated tobacco products, and at present, China has not approved the listing and sale of heated tobacco in the country. Therefore, major brands can only give up the domestic market, have turned to overseas.

At present, Japan and South Korea have become the world's largest heated tobacco market, however, the market has entered the saturation stage, and IQOS, a subsidiary of FILMO International, occupies most of the market share, so more companies choose to open up emerging markets such as Southeast Asia, such as building factories, opening stores, and launching new products in countries such as Malaysia, Indonesia, and the Philippines.

For example, in November 2023, Filmore International Malaysia officially launched its heated tobacco product IQOS ILUMA in the Malaysian market. jinjia has set up a subsidiary in Indonesia to provide localized production of HNB, OEM and supply chain business etc.

("KUANZHAI" brand on the shelves of the Mix Store chain in Malaysia)

For example, in November 2021, Sichuan China Tobacco launched the Kungfu experience store in Penang, Malaysia, and the "KUANZHAI" brand of heated cigarettes was subsequently launched in the Mix Store chain of retail stores. Hubei China Tobacco's heated tobacco brand, MOK, has also long been laid out in Southeast Asia. From September 6-8 this year, MOK will participate in the ANTY EXPO Asia International New Tobacco Exhibition in Malaysia, hoping to further develop the Southeast Asian market.

As of 2021, the population of Southeast Asia is about 676 million, of which the three countries where heated tobacco products are legal, Malaysia, the Philippines, and Indonesia, account for 423 million people, of which about one-fifth are smokers, with a strong culture of tobacco, so Southeast Asia has a broad market prospect. The Philippine Department of Trade and Industry (DTI) has also publicly stated that it welcomes heated tobacco manufacturers to set up factories in the Philippines and is willing to provide multi-country zero-tariff policy support, which is enough to show the local government's supportive attitude towards the heated non-combustible industry.

According to the latest survey report by Euromonitor International, in 2022, global sales of heated tobacco products will be about $32 billion, while sales of e-cigarette products will be about $19 billion. Last year, heated tobacco sales reached double-digit growth. Currently, the total number of IQOS users has reached 28.6 million as newly disclosed by Femo International. In order to grab more users, many international tobacco companies, including Femo, as well as brands, are embarking on exploring emerging markets such as Southeast Asia.

On September 6-8 this year, ANTY EXPO 2024 Asia International New Tobacco Exhibition will be held in Malaysia International Convention and Exhibition Center, the scale of nearly 20,000 square meters, including HNB, e-cigarettes, oral cigarettes, e-waterpipe, including the new tobacco exhibitors will gather together, and bring together the herbal atomization series, CBD equipment and other manufacturers and products. At the same time, this exhibition will attract global agents, distributors and other channels to come to docking, grasp the latest product trends, explore new tobacco cooperation opportunities.

Key words:

HNB,Heating does not burn,Heated Tobacco,Heated cigarettes,New Tobacco

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