The global heated tobacco products (HTP) market was valued at $4.16 billion in 2021. The market is expected to grow to $7.97 billion by 2027.

The global heated tobacco products (HTP) market in 2021 had a capacity of 4,180.37 tonnes. The global heated tobacco products market is expected to grow to 7,452.80 tonnes in capacity by 2027.

Heated tobacco products (HTPS), also known as “heat without burn” products, are used to heat processed tobacco without ignite to produce aerosols or smoke, allowing users to inhale nicotine, non-tobacco additives, and other chemicals through their mouths. HTP is based on the principle that burning tobacco is not necessary for the release of nicotine.

Heated Tobacco products (HTPS) are a hybrid of e-cigarettes and traditional cigarettesbecause they are equipped with a device that heats the product to produce aerosols without burning it, while using tobacco instead of nicotine-containing liquids.

Factors such as rising personal income, increased health awareness, the rise of retail e-commerce, and increased investment in research and development are expected to drive overall market growth during the forecast period. The market is expected to grow in value and volume at a compound annual growth rate of approximately. 11 percent and 10 percent, respectively, in the 2022-2027 forecast period.

Market segmentation analysis

By product type: The market is divided into two segments: Leaf and Stick. In 2021, the cane segment had the largest market share. In addition, the heated tobacco product market value is the fastest growing segment of the global heated tobacco product market value due to the high adoption of HTPS as premium products and the ease of use of tobacco sticks compared to traditional cigarettes.

By distribution channel: In 2021, the offline segment accounted for the majority of the global heated tobacco products (HTP) market. On the other hand, the online heated tobacco(heated tabac supplier) products market is the fastest growing segment of the heated tobacco products market due to the rise of e-commerce platforms and companies with their own online channels and websites offering a wide range of products and new designs, incentivise the gradual development of consumers to switch to online purchases of heated tobacco products.

By region: Regions such as North America, Europe, Asia-Pacific, Middle East & Africa, and Latin America provide insight into the heated tobacco products market. North America has a major share of the market. In North America, thanks to aggressive government initiatives and well-known brands promoting HTPS as premium products, the US is leading the market, attracting young and adult smokers who have a strong preference for branded products and tobacco to promote social image. The North American market for heated tobacco products, in terms of volume, is also divided into offline and online segments based on distribution channels, with the offline segment accounting for a major share of the market.

In Europe, Germany holds the highest market share, while the United Kingdom is expected to be the fastest growing market for heated tobacco products over the forecast period.

The heated tobacco products market in Asia Pacific is divided into five regions by geography, namely China, Japan, India, Korea and the rest of Asia Pacific, of which China has the largest share of the heated tobacco products market in Asia Pacific due to the wide variety of HTP brands released locally, large smoking population and favorable government initiatives.

Market dynamics

The global market for heated tobacco products has been growing over the past few years due to rising personal incomes, increased health awareness, increased investment in research and development, government initiatives and other factors. Higher incomes make people more informed about better alternatives available in the market and enable them to afford quality products. As a result, as incomes rise, people will switch from traditional cigarettes to better quality tobacco products, such as HTPS, which are considered less harmful and offer convenience of choice in terms of type, style and taste.

Challenges faced

However, market growth will be negatively impacted by various challenges, such as the increasing popularity of alternative tobacco products, lack of scientific evidence, stringent regulations, etc. The global heated tobacco products (HTP) market faces competition from other smokeless tobacco products such as snuff, chewing tobacco, wet snuff and e-cigarette products. In addition, each country/territory has its own local variation of smokeless tobacco products.

Development trend

The market is expected to grow rapidly during the forecast period due to various latest trends such as the rise of retail e-commerce, the rising influence of parties and pop culture, and the rise of digital advertising. E-commerce platforms offer personalized service shopping help, discounts, valuable feedback on products through previous customer reviews and ratings, as well as advice on product design, size and ability to expel nicotine content when smoked. These benefits have increased the demand for heated tobacco products and, as a result, the rise of retail e-commerce has had a positive impact on the heated tobacco products market.

Direction of advance

With the emergence of COVID-19, the lives of people around the world have changed dramatically, whether it is a change in lifestyle, a habit of face masks, longer lockdowns or the loss of livelihoods.

As the increasing death toll wreaks havoc and people are prevented from leaving their homes except for basic necessities and health care, the lockdown policy creates a lot of stress and anxiety in people’s minds.

The global impact of COVID-19 on the heated tobacco products (HTP) market is proving positive, as people with anxiety and panic attack symptoms turn to heated tobacco products for stress and anxiety as bars, casinos, taverns, restaurants and all other public places close.

In addition, hard-core smokers who had difficulty obtaining other addictive substances (such as weeds, marijuana, alcohol, etc.) during the lockdown turned to HTPS because the devices were more readily available in stores and online buying sites.