Global Heat not Burn Tobacco Market to Reach Revenues of around $39 billion by 2025 | Arizton

CHICAGO, IL, UNITED STATES, March 4, 2020 /EINPresswire.com/ -- According to Arizton’s recent research report, Heat not Burn Tobacco Market - Global Outlook and Forecast 2020-2025 is expected to grow at a CAGR of over 22% during the period 2019−2025.

Heat not Burn Tobacco - Key Highlights:

1. The global HnB tobacco market would realize an absolute growth of 3300% – a phenomenal leap of over $37 billion revenue between 2015 and 2025.
2. Posting a CAGR of over 20% during 2019-2025, HnB tobacco products are attracting major infrastructure investments as the Big Tobacco firms are investing in new manufacturing and R&D facilities worldwide to meet the soaring demand.
3. Contributing about $21 billion incremental revenue during 2019-2025, HnB consumables offers a lucrative revenue potential opportunity for market vendors.
4. In 2019, Japan and South Korea accounted for a combined market share of over 70%. However, the approval of HnB tobacco products by the US FDA in early 2019 will help the US to capture 10% market share by 2025.
5. Online sales of HnB products, growing at over 20% YOY, will continue to erode the market share of retail channels during the forecast year.

Market Segmentation by Distribution
• Retail
o Convenience Stores
o Tobacco Shops
o Grocery Shops
o Drug Shops
o Others
• Online
o Company & E-commerce Websites

Market Segmentation by Product
• Devices
o Direct/Indirect Heating
o Hybrid/Infused
• Consumables
o Tobacco Capsules and Cartridges
o Tobacco Sticks

Heat not Burn Tobacco Market – Dynamics

The end objective of every business is to earn more and more profit. The high profitability is a result of high growth sales and major investments. Investment in the business helps to make operations more efficient; majorly, the investments are made in product development, research & development, and to enhance marketing strategies. In the HnB industry, companies need to invest in research and development to know the changing behavior of smoking people and their shift towards health consciousness. Philip Morris, in 2017, announced an investment of around $330 million to expand the efficiency of Greece manufacturing plants, which manufactures smoke-free devices.

Key Drivers and Trends fueling Market Growth:
• Growing Mergers & Acquisitions
• Shift from Smoking Toward Heated Tobacco
• Social Marketing Techniques Used for Promotion
• Growing Techno Savvy Population

Heat not Burn Tobacco Market – Geography

APAC remains to be looked upon as the largest potential market for HnB products during the forecast period. Advances in lifestyle coupled with rising consumer expenditure are likely to increase the consumption of HnB vapor products in APAC during the forecast period. However, the region faces several challenges such as proposals to regulate vapor products, impose high taxes, and ban vapor products in the region. Besides, an increase in counterfeit products and unregulated manufacturing processes are hindering the growth of the APAC market. The consumer market in APAC, particularly in Southeast Asian countries, is poised to grow at a tremendous rate because of the increased spending power of buyers in various countries. Advances in lifestyle coupled with rising consumer expenditure, are likely to increase the penetration of HnB tobacco vapor products in APAC during the forecast period.

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Market Segmentation by Geography
• Europe
o Spain
o Germany
o Italy
o France
o UK
o Poland
o Russia
o Czech Republic
o Romania
• North America
o US
o Canada
• APAC
o South Korea
o China
o Japan
o Australia & New Zealand
o Malaysia
• MEA
o UAE
o South Africa
o Egypt

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Major Vendors
• Philip Morris International
• Japan Tobacco International (JTI)
• British American Tobacco
• Imperial Brands

Other vendors include - KT&G (Korea Tomorrow & Global Corporation), RJ Reynolds Vapor Company (RJRVC), Shenzhen AVBAD Technology Company Ltd., Pax Labs, Vapor Tobacco Manufacturing, Shenzhen Royal Tobacco Industrial Limited (Royal Tobacco), JOUZ, Shenzhen Yukan Intelligent Technology Co., Ltd., Anlerr, HI TASTE, Shenzhen Kamry Technology, Yetr Amus, Shenzhen Yunxi Technology, AIIR Technology (Shenzhen), Buddy Technology Development, Shenzhen Original Technology, Fog & Frog Technology (Shenzhen), YanB Technology Shenzhen, Coeus, CCBATO, Dongguan Hawei Electronic Technology Limited, Dongguan Cigwin Technology, and Shenzhen Keeptech Electronics.

Jessica
Arizton Advisory & Intelligence
+1 3122352040
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