Report Description Table of Contents The heat-not-burn market was worth USD 20.3 billion in 2023 and will be worth USD 214.83 billion by 2030, growing at a CAGR of 34.3% during the forecast period. The heat-not-burn (HNB) market is fueled by growth in the quest for a non-conventional smoking delivery system, as well as growing health consciousness in combustible tobacco products. According to the World Health Organisation, more than one billion people in the world smoke, and many of those smokers are in search of a reduced-risk option. These are HNB products that heat tobacco instead of burning it, and they are said to have fewer toxicants than cigarettes. For instance, Philip Morris International has stated that more than twenty million adults will have transitioned to its Heat Not Burn IQOS device by 2022, proving the new trend. Other factors driving the formation include regulatory modifications, including the U.K.’s new bend towards freer regulation of HNB than traditional cigarettes. Subsequent evolution is also emerging progress, such as the release of British American Tobacco’s Glo Hyper X2 in 2023 is expanding the accessibility of HNB products for more markets and thus pushing forward the demand growth. The global heat-not-burn (HNB) market remains a promising sector because of the constantly rising demand from customers who are looking for less hazardous alternatives to smoking conventional cigarettes and the enhancement of state-led programs for the mitigation of negative consequences of smoking. While currently, more than 80% of smokers from around the world live in LMICs, as awareness and disposable income rise, these consumers will seek out less hazardous forms of tobacco products. Japan is a good example, where HNB products already constitute more than a quarter of the tobacco market thanks to the early start and favorable legal prerequisites. In 2022, Philip Morris International launched the IQOS ILUMA series onto the international market with new and enhanced technologies that involve induction heating for efficiency and better experience. The growth in this market is expected to rise every term as more regions, such as Europe and some parts of Asia, continue to liberalize their policies on HNB products compared to combustible cigarettes. Market Segmentation By Product Type: Devices Tobacco Sticks Capsules/Cartridges Accessories By User Type: Regular Smokers Occasional Smokers Non-Smokers (Users switching from vaping or non-combustible alternatives) By Flavor: Tobacco Flavor Menthol Flavor Fruit Flavor Others (Custom/Unique Flavors) By Age Group: 18-24 25-44 45 and above By Region North America US Mexico Canada Rest of North America Europe Switzerland Russia France Germany U.K Finland Turkey Netherlands Belgium Spain Italy Rest of Europe Asia Pacific India China South Korea Japan Singapore Thailand Indonesia Malaysia Philippines Australia Rest of Asia-Pacific LAMEA Brazil Argentina Uruguay Saudi Arabia Rest of LAMEA Segment Analysis for the Heat-Not-Burn (HNB) Market By Product Type: Leading Segment: Devices Devices account for over 45% of the market share as they are the primary component enabling the heat-not-burn technology. With advancements in device technology, such as reduced heating times and longer battery life, leading brands like IQOS (by Philip Morris International) dominate this segment. The segment is growing steadily at a CAGR of 8%, driven by rising adoption among consumers seeking alternatives to traditional smoking. Fastest-Growing Segment: Tobacco Sticks Tobacco sticks are growing at a CAGR of over 12%, as they represent the consumable component for HNB devices. Companies like British American Tobacco (BAT) are introducing innovative tobacco stick flavors to cater to regional preferences, such as menthol in Europe & tobacco-rich flavors in Asia. Their affordability & recurring demand make this segment highly lucrative. By User Type: Leading Segment: Regular Smokers Regular smokers make up more than 60% of the market for HNB products because they see them as a safer alternative to traditional cigarettes. The continuous drop in cigarette smoking, along with marketing campaigns that emphasize lower risks, has boosted this segment. Japan, which has one of the largest groups of HNB users, shows a significant number of regular smokers switching to these products. Fastest-Growing Segment: Non-Smokers (Switching from Vaping or Non-Combustible Alternatives) This segment is growing at a CAGR of 14% as non-smokers increasingly switch to HNB products, considering them a safer alternative to vaping. Governments regulating e-cigarettes in regions like Europe & North America have contributed to this shift. Young adults in the U.S. are moving from vaping to HNB products following stricter policies on flavored vape products. By Flavor: Leading Segment: Tobacco Flavor Tobacco flavor is still the top choice, making up 50% of the market, because it appeals to people switching from regular cigarettes. Brands like HEETS (from IQOS) offer rich tobacco flavors to attract traditional smokers. This segment keeps growing because it provides a familiar cigarette-smoking experience. Fastest-Growing Segment: Fruit Flavor Fruit flavors are growing at a CAGR of 13%, especially among younger consumers aged 18-24 who prefer flavored alternatives over traditional tobacco. In regions like Asia Pacific & Europe, fruit flavors such as berry, mango & citrus are gaining traction. For example, KT&G's Lil products have introduced region-specific fruit flavors to target younger demographics. By Age Group: Leading Segment: 25-44 The age group 25-44 dominates the market, holding over 50% of the share due to their higher disposable income & willingness to explore innovative smoking alternatives. Professionals in this category are particularly attracted to the reduced health risks associated with HNB products. In markets like South Korea and the U.K., this age group represents the majority of HNB users. Fastest-Growing Segment: 18-24 The 18-24 age group is growing at a CAGR of 15%, driven by their preference for flavored options & trendiness associated with HNB products. Marketing campaigns on social media platforms & collaborations with influencers play a crucial role in attracting younger audiences. For instance, in Europe, fruit and menthol-flavored HNB products are particularly popular among this demographic. By Region: Leading Region: Asia Pacific The Asia-Pacific region holds over 40% of the market share, with Japan and South Korea being the main adopters of HNB products. The growth is driven by supportive regulations and cultural acceptance of HNB as a safer product. In Japan, for instance, Philip Morris International's IQOS has a significant market share, thanks to strong marketing and distribution networks. Fastest-Growing Region: Europe Europe is the fastest-growing region, with a CAGR of 13%, fueled by increasing awareness of reduced-risk products & the adoption of stricter regulations on traditional cigarettes. Countries like the U.K., Germany & Italy are seeing a surge in demand for HNB products due to campaigns promoting them as safer alternatives. British American Tobacco has seen significant growth in its HNB sales across Europe, particularly in the menthol flavor segment. Key Players Philip Morris International British American Tobacco Japan Tobacco Inc. KT&G Corporation Imperial Brands China National Tobacco Corporation Motrex Vapelux Group Shenzhen Yukan Technology RRD Tobacco Heat-Not-Burn (HNB) Market Report Coverage Report Attribute Details Forecast Period 2023 – 2030 Market Size Value in 2023 USD 20.3 billion Revenue Forecast in 2030 USD 214.83 billion Overall Growth Rate CAGR of 34.3% Base Year for Estimation 2022 Historical Data 2017 – 2021 Unit USD Billion, CAGR (2023 - 2030) Segmentation By Product Type, By User Type, By Flavor, By Age Group, By Region By Product Type Devices, Tobacco Sticks, Capsules/Cartridges, Accessories By User Type Regular Smokers, Occasional Smokers, Non-Smokers (switching from vaping or non-combustible alternatives) By Flavor Tobacco Flavor, Menthol Flavor, Fruit Flavor, Others (Custom/Unique Flavors) By Age Group 18-24, 25-44, 45 and above By Region North America, Europe, Asia-Pacific, LAMEA Country Scope US, Canada, Mexico, UK, Germany, France, China, Japan, India, South Korea, Australia, etc. Pricing and Purchase Options Avail customized purchase options to meet your exact research needs. Frequently Asked Question About This Report How big is the Heat-Not-Burn Market? The heat-not-burn market was valued at USD 20.3 billion in 2023 and is projected to reach USD 214.83 billion by 2030, growing at a CAGR of 34.3% during the forecast period. What are the key factors driving the growth of the Heat-Not-Burn Market? The market is driven by rising demand for non-conventional smoking systems and growing health awareness about combustible tobacco, with regulatory changes and innovations like British American Tobacco’s Glo Hyper X2 further fueling growth. Who are the major players in the Heat-Not-Burn Market? Key players include Philip Morris International, British American Tobacco, Japan Tobacco International, and Imperial Brands. Which region held the largest Heat-Not-Burn Market share? Asia-Pacific, particularly Japan, holds a significant market share due to early adoption and favorable regulatory environments. Which application had the largest Heat-Not-Burn Market share? The regular smokers segment dominates the market, reflecting the high adoption of heat-not-burn products among habitual smokers seeking reduced-risk alternatives. Source- https://www.tobaccotactics.org/article/newer-nicotine-and-tobacco-products-british-american-tobacco/ https://www.tobaccotactics.org/article/newer-nicotine-and-tobacco-products-philip-morris-international/ Table of Contents 1. HEAT-NOT-BURN MARKET – PRODUCTION VOLUME BY REGION, (2024 – 2030) 1.1. North America 1.2. Europe 1.3. Asia Pacific 1.4. Latin America 1.5. Middle East & Africa 2. HEAT-NOT-BURN MARKET – REVENUE ($MILLION), BY REGION, (2024 – 2030) 2.1. North America 2.2. Europe 2.3. Asia Pacific 2.4. Latin America 2.5. Middle East & Africa 3. MARKET SHARE ANALYSIS – HEAT-NOT-BURN MARKET 3.1. Top 20 Players with Product Mix, Revenue, and Sales Volume 3.2. Market Share, 2023 3.3. Market By Product Type of HEAT-NOT-BURN and End Use Outlook Analysis 4. HISTORIC TRENDS IN HEAT-NOT-BURN MARKET 5. EMERGING MARKET TRENDS 6. NORTH AMERICA HEAT-NOT-BURN MARKET ANALYSIS BY SEGMENT (COUNTRY-LEVEL ANALYSIS) 6.1. North America HEAT-NOT-BURN Historical Market ($MILLION), (2017 – 2023) 6.2. North America HEAT-NOT-BURN Market ($MILLION) and Forecasts (2024 – 2030) 6.3. North America HEAT-NOT-BURN Market Type ($MILLION), and Forecasts (2024 – 2030), By Product Type 6.3.1. Devices 6.3.2. Tobacco Sticks 6.3.3. Capsules/Cartridges 6.3.4. Accessories 6.4. North America HEAT-NOT-BURN Market Type ($MILLION), and Forecasts (2024 – 2030), By User Type 6.4.1. Regular Smokers 6.4.2. Occasional Smokers 6.4.3. Non-Smokers 6.5. North America HEAT-NOT-BURN Market Type ($MILLION), and Forecasts (2024 – 2030), By Flavor 6.5.1. Tobacco Flavor 6.5.2. Menthol Flavor 6.5.3. Fruit Flavor 6.5.4. Others (Custom/Unique Flavors) 6.6. North America HEAT-NOT-BURN Market Type ($MILLION), and Forecasts (2024 – 2030), By Age Group 6.6.1. 18-24 6.6.2. 25-44 6.6.3. 45 and above 6.7. North America HEAT-NOT-BURN Market Type ($MILLION), and Forecasts (2024 – 2030), By Geography 6.7.1. USA 6.7.2. Canada 6.7.3. Rest of North America 7. USA HEAT-NOT-BURN MARKET ANALYSIS BY SEGMENT (COUNTRY-LEVEL ANALYSIS) 8. EUROPE HEAT-NOT-BURN MARKET ANALYSIS BY SEGMENT (COUNTRY-LEVEL ANALYSIS) 8.1. Europe HEAT-NOT-BURN Historical Market ($MILLION), (2017 – 2023) 8.2. Europe HEAT-NOT-BURN Market ($MILLION) and Forecasts (2024 – 2030) 8.3. Europe HEAT-NOT-BURN Market Type ($MILLION), and Forecasts (2024 – 2030), By Product Type 8.4. Europe HEAT-NOT-BURN Market Type ($MILLION), and Forecasts (2024 – 2030), By User Type 8.5. Europe HEAT-NOT-BURN Market Type ($MILLION), and Forecasts (2024 – 2030), By Flavor 8.6. Europe HEAT-NOT-BURN Market Type ($MILLION), and Forecasts (2024 – 2030), By Age Group 8.7. Europe HEAT-NOT-BURN Market Type ($MILLION), and Forecasts (2024 – 2030), By Geography 8.7.1. Germany 8.7.2. France 8.7.3. UK 8.7.4. Italy 8.7.5. Spain 8.7.6. Rest of Europe 9. APAC HEAT-NOT-BURN MARKET ANALYSIS BY SEGMENT (COUNTRY-LEVEL ANALYSIS) 9.1. APAC HEAT-NOT-BURN Historical Market ($MILLION), (2017 – 2023) 9.2. APAC HEAT-NOT-BURN Market ($MILLION) and Forecasts (2024 – 2030) 9.3. APAC HEAT-NOT-BURN Market Type ($MILLION), and Forecasts (2024 – 2030), By Product Type 9.4. APAC HEAT-NOT-BURN Market Type ($MILLION), and Forecasts (2024 – 2030), By User Type 9.5. APAC HEAT-NOT-BURN Market Type ($MILLION), and Forecasts (2024 – 2030), By Flavor 9.6. APAC HEAT-NOT-BURN Market Type ($MILLION), and Forecasts (2024 – 2030), By Age Group 9.7. APAC HEAT-NOT-BURN Market Type ($MILLION), and Forecasts (2024 – 2030), By Geography 9.7.1. China 9.7.2. Japan 9.7.3. South Korea 9.7.4. India 9.7.5. Australia 9.7.6. Rest of APAC 10. LATIN AMERICA HEAT-NOT-BURN MARKET ANALYSIS BY SEGMENT (COUNTRY-LEVEL ANALYSIS) 10.1. Latin America HEAT-NOT-BURN Historical Market ($MILLION), (2017 – 2023) 10.2. Latin America HEAT-NOT-BURN Market ($MILLION) and Forecasts (2024 – 2030) 10.3. Latin America HEAT-NOT-BURN Market Type ($MILLION), and Forecasts (2024 – 2030), By Product Type 10.4. Latin America HEAT-NOT-BURN Market Type ($MILLION), and Forecasts (2024 – 2030), By User Type 10.5. Latin America HEAT-NOT-BURN Market Type ($MILLION), and Forecasts (2024 – 2030), By Flavor 10.6. Latin America HEAT-NOT-BURN Market Type ($MILLION), and Forecasts (2024 – 2030), By Age Group 10.7. Latin America HEAT-NOT-BURN Market Type ($MILLION), and Forecasts (2024 – 2030), By Geography 10.7.1. Brazil 10.7.2. Argentina 10.7.3. Rest of Latin America 11. COMPANY PROFILES: 11.1. Philip Morris International 11.1.1. Company Overview 11.1.2. Company Snapshot 11.1.3. Operating business segments 11.1.4. Product offered and Revenue 11.1.5. Production & Sales 11.2. British American Tobacco 11.3. Japan Tobacco Inc. 11.4. KT&G Corporation 11.5. Imperial Brands 11.6. China National Tobacco Corporation 11.7. Motrex 11.8. Vapelux Group 11.9. Shenzhen Yukan Technology 11.10. OTHER MARKET PLAYERS