Insights and Discoveries

South Korea is one of the fastest-growing heated tobacco (HNB) markets globally. Supported by a clear regulatory framework, nationwide convenience-store dominance, the rapid rise of KT&G, and ongoing tax adjustments toward cigarette-equivalent levels, Korea has formed a unique ecosystem driven by regulation, consumer behavior, and technological innovation. From declining combustible cigarette share and rising HNB penetration, to a strong rebound in device sales and consistently growing stick volumes, the Korean market is shifting from foreign-brand dominance to a locally driven competitive landscape. By 2024, KT&G’s MIIX overtook all competitors, signaling a shift toward ecosystem-based competition rather than product-based rivalry.

Japan is the world’s most mature and highly penetrated heated tobacco (HNB) market. Its regulatory environment, consumer adoption speed, and brand competition landscape have turned the country into a global benchmark for reduced-risk nicotine products. From flexible indoor-use policies to the explosive rise of IQOS ILUMA and TEREA, Japan’s trajectory continues to shape global strategies for tobacco innovation.

This insight analyzes the global regional landscape of the heated tobacco (HNB) industry, highlighting the dominance of Japan and Italy, the rise of Eastern Europe, and the growing maturity of South Korea and Southeast Asia. By 2024, Japan alone accounted for over 32% of global HNB sales, while Europe collectively represented more than one-third of total market volume. This distribution reflects both regulatory readiness and cultural acceptance of harm-reduction products, marking Asia and Europe as the twin engines of the world’s HNB growth.

Between 2019 and 2024, the global heated tobacco (HNB) market evolved from rapid expansion to steady maturity, becoming a cornerstone of the tobacco industry’s transformation. Driven by product innovation, regulatory adaptation, and consumer demand for harm-reduction alternatives, the market nearly tripled in size, reaching USD 40 billion in 2024. Despite the slowdown in growth rates, the HNB category continues to dominate next-generation tobacco revenues — with cartridges (heat sticks) accounting for over 93% of sales and maintaining strong profitability through a high-frequency consumption model.

This insight examines the evolving user landscape of oral nicotine products through two representative markets — Sweden, where oral nicotine has deep cultural roots in snus, and the United States, where regulation and innovation drive adoption. In Sweden, nicotine pouch usage is rapidly expanding among younger and female consumers, signaling a lifestyle-driven trend. In contrast, U.S. consumers remain predominantly male and middle-aged, often combining oral nicotine with other nicotine products. Together, these cases reveal how policy frameworks, cultural acceptance, and health perceptions shape the global oral nicotine movement.

This insight outlines the current landscape of the global oral nicotine market — including user demographics, market size, structural evolution, and product segmentation. With the rise of tobacco-free nicotine pouches, the industry is witnessing rapid transformation driven by health awareness, flexible regulation, and innovation in product formulation.