18B.2 The heated tobacco product market

Last updated: May 2024           

Suggested citation: Winnall, WR, Hippolyte, D & Greenhalgh, EM. 18B.2 The heated tobacco product market. In Greenhalgh EM, Scollo, MM and Winstanley, MH [editors]. Tobacco in Australia: Facts and issues. Melbourne: Cancer Council Victoria; 2024. Available from https://www.tobaccoinaustralia.org.au/chapter-18-e-cigarettes/indepth-18b-non-combustible-cigarettes/18b-2-the-heated-tobacco-product-market


Heated tobacco products, unlike e-cigarettes, include tobacco that is heated to produce an emission. These products comprise consumable tobacco sticks that are placed in rechargeable devices, the sales of which both contribute to the global market. Most of these products are sold by the major tobacco companies. Some tobacco sticks (and non-tobacco sticks containing nicotine) are marketed by alternative companies as ‘made to fit’ a range of heating devices.

Although there is no legitimate market for heated tobacco products in Australia, there is a growing global market, particularly in Japan. The size of this global market was estimated to be USD $32.4 billion in 2022, which constitutes 3.48% of the total tobacco market. 1

18B.2.1 Introduction and growth of the heated tobacco product market

Heated tobacco products were first introduced to the market by tobacco companies in the 1980s, but were commercially unsuccessful at the time. 2 RJ Reynolds test-marketed two products (Premier and Eclipse) on the US market, both of which were withdrawn. Prior to their commercially successful IQOS product, Philip Morris US (now Altria) tested heated tobacco products in Japan and the US from 1998 to 2006 (see Table 18B.2.1).

From 2013 to 2019, the major manufacturers tested and launched their new brands, first in selected markets then wider launches. Japan Tobacco International tested their Ploom brand in 2013, 3 followed by major launches in 2016 in Japan, 2017 in Switzerland and 2019 in South Korea. 4 Philip Morris International first introduced its successful IQOS brand in select Japanese cities in November 2014. 4-6 IQOS was also released in Italy and Switzerland in 2015. 7 British American Tobacco’s ‘Glo’ device was first sold in Asian coutries and Europe from 2016. 8 Of the major tobacco companies, Imperial Brands wasthe last to release a product; Imperial’s Pulze was launched in 2019 in Japan and then Europe. 6 For a historial record of the introdution of new heated tobacco products, see Table 18B.2.1.

Present-day heated tobacco products are predominantly manufactured by tobacco companies, with Japan often serving as the focal market to test the potential of such products. It is speculated that the reasons for test-marketing in Japan may be due to its strong regulation of e-cigarettes, lower restrictions on tobacco advertising, alignment with cultural values of order, cleanliness and quality, and consumer interest in new products. 9 , 10

Philip Morris received clearance from the US Food and Drug Administration (FDA) to sell IQOS in that market in April 2019 and began sales of the device in October of the same year. 11

Table 18B.2.1 Major heated tobacco products by year of introduction to the market (not including loose-leaf vaporisers).


Trade name a

Years on market


Heating function


R.J. Reynolds


1988 to 1989

Test-marketed in US


Aluminium capsules containing tobacco pellets, with a carbon element at the tip to transfer heat. Withdrawn due to poor sales.

R.J. Reynolds


Versions tested in 1996 to 2000, withdrawn in 2006.

Test-marketed in various versions from 1996 to 2000.


Reconstituted tobacco with a carbon element at the tip to transfer heat.

Philip Morris US (Altria)

Accord in US

Oasis in Japan

1998 to 2006

US and Japan


Peak temperature of 500°C, maximum of 8 puffs per tobacco stick.

Philip Morris International


2006 to 2008

Australia, Germany and Switzerland


Peak temperature of 500°C, maximum of 8 puffs per tobacco stick.

Japan Tobacco International



Austria, Korea, Italy


An e-liquid is heated to produce and aerosol that is passed across tobacco before inhalation.

Philip Morris International and Altria (in the US)



Japan and some European countries in 2014, then extended to many countries in Europe, Africa, Middel east, Central America and the Caribbean.


Inserted blades (2014 to 2019)

Induction (2021)

Heated insertion tube (2022)

Should not exceed 350°C. Released first in 2014, then modified versions in 2016, 2018, 2019, 2021 and 2022. 6 minutes or 14 puffs per tobacco stick.

R.J. Reynolds (by then owned by British American Tobacco)


Test-marketed 2014 to 2015.

Test-market in the U.S.


Reported to be a new version of Eclipse

British American Tobacco



Romania (test-market)


Heats a nicotine-infused liquid to produce an aerosol, which is passed through tobacco before being inhaled.

Japan Tobacco International



Japan (2016), Switzerland (2017), South Korea (2019)



British American Tobacco



4 new variants released in 2019

Sold in many countries in Asia and Europe.


Induction heating from 2019

Heats tobacco to 240 to 280°C. Brand variants released from 2019 use induction heating.

Philip Morris International

Platform 2 (TEEPS)

2017 discontinued in 2021

test-marketed in Dominican Republic


Carbon tip heat source.


(later in partnership with Philip Morris International)



Launched in South Korea, then a further 10 countries by 2021



China Tobacco



Launched first in China, then internationally



Imperial Brands



Launched in Japan first, then Europe.


A rod penetrates the tobacco stick, warming from the inside. Temperatures are 315°C in or 345°C over two mode settings.

Japan Tobacco International

Ploom S and Ploom X

Ploom S: 2019

Ploom X: 2021

Launched in Japan, then internationally.

External, induction

24 uses per stick. Temperature and heating time can be changed over two different settings.

a Trade names refer to the device, not the tobacco sticks


Tobacco Tactics. Heated tobacco products: Philip Morris International. 12

Tobacco Tactics. Heated tobacco products. 9

Japan Tobacco Inc. JT Group launches Ploom X 13

Report on the scientific basis of tobacco product regulation: Seventh report of a WHO study group. 14

Report on the scientific basis of tobacco product regulation: eighth report of a WHO study group 4

Philip Morris International. Over 30 years of innovation. 15

Gornall J. British American Tobacco puts tobacco in new e-cigarette. 16

Lee J and Lee S. Korean-made heated tobacco product, 'lil'. 17

Tobacco Tactics. Newer Nicotine and Tobacco Products: Imperial Brands. 6

Tobacco Reporter. JT to launch PLOOM on domestic market. 3

18B.2.2 Global market for heated tobacco products 

Much of the information in Sections 18B.2.2 and 18B.2.3 comes from Euromonitor International research as reported by Campaign for Tobacco-Free Kids in their publication: Heated tobacco products: Definitions and global markets. 1  

Heated tobacco products are available in at least 64 countries/markets across Europe, North America, South America and Asia, with small but growing markets in Africa and the Middle East. 1 The value of the global market for heated tobacco products (both devices and sticks) was estimated by Euromonitor International to be US $32.4 billion in 2022. 1 Despite this size, heated tobacco remains only a small proportion of total global tobacco sales. Including devices and tobacco sticks, the heated tobacco market represents 3.5% of the global market for tobacco. 1

Japan is the largest market for heated tobacco products, where an estimated 35.2% of the tobacco market comes from heated tobacco products. In Europe, the value of the heated tobacco market was almost half of the global market, at an estimated 16.1 billion in 2022. Italy, Russia and Germany were common markets for heated tobacco. 1 , 9

The proportion of devices versus tobacco sticks has changed over the past decade. In 2014, tobacco sticks accounted for one third of the market, measured by total value, which rose to 90% by 2021. By 2022, there were an estimated 150 billion sticks sold globally. 18

In its 2023 report, Euromonitor International found that market growth is increasingly driven by geographic diversification. The more mature Asia Pacific region and Eastern Europe regional market slowed to 14% and 18% growth, respectively, but Western Europe remained at 41% growth. 18 The global market is projected to grow by almost 80% from 2022 to 2027. 1

18B.2.3 Market share for brand leaders

Heated tobacco products are mostly sold by the major tobacco companies rather than by independent companies.

IQOS (Philip Morris International/Altria)

IQOS has consistently been the market leader. 19 Following steady growth in the market in 2017, IQOS sales plateaued in 2018 and declined in the first half of 2019. 20 , 21 This waning market performance suggested that demand for the IQOS had reduced as PMI has captured all of the early adopters of the IQOS and now faces the prospect of convincing older, more conservative people who smoke to switch. 22 However, in 2024, representatives from PMI reported continued growth of IQOS sales, surpassing Marlboro in terms of net revenues. 23

A report from Campaign for Tobacco-Free Kids quotes Euromonitor data stating that the IQOS was sold in 64 countries/markets in 2022 and encompassed 61.0% of the global market for heated tobacco devices, and 43.3% for its tobacco sticks. 1 IQOS are most commonly sold in Japan, Italy and South Korea. 19

Glo (British American Tobacco, BAT)

The BAT product glo was launched in 2016 and was sold in at least 21 countries/markets in 2022. 1 Euromonitor data reported by Campaign for Tobacco-Free Kids show that glo devices held 15.3% of the global market volume for heated tobacco products in 2022. Glo products are most commonly sold in Europe. 1

Lil (KT&G, a South Korean company, then later in partnership with Philip Morris International)

Lil products were first introduced in 2017 and in 2022 constituted 5.8% of the global market for heated tobacco products. 1 Lil has been particularly successful in South Korea, with a reported market share of 48% in May 2023. 24  

Other heated tobacco products with a smaller market share include Ploom (Japan Tobacco International), Mok (China National Tobacco) and Pulze (Imperial Brands), see Table 18B.2.1.

Relevant news and research

For recent news items and research on this topic, click here. (Last updated May 2024)


1. Tobacco Free Kids. Heated tobacco products: Definitions and global markets.,  2023. Available from: https://assets.tobaccofreekids.org/emerging-products/resources/HTPs-Definitions.pdf.

2. McNeill A, Brose L, Calder R, Bauld L, and Robson D, Evidence review of e-cigarettes and heated tobacco products 2018. A report commissioned by Public Health England. London: Public Health England; 2018. Available from: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/680964/Evidence_review_of_e-cigarettes_and_heated_tobacco_products_2018.pdf.

3. Tobacco Reporter. JT to launch Ploom on domestic market.  2013. Available from: https://tobaccoreporter.com/2013/11/28/jt-to-launch-ploom-on-domestic-market/.

4. WHO Study Group on Tobacco Product Regulation. Report on the scientific basis of tobacco product regulation: Eighth report of a WHO study group., WHO Technical Report Series, No. 1029.Geneva, Switzerland: WHO, 2021. Available from: https://www.who.int/publications/i/item/9789240022720.

5. Caputi TL, Leas E, Dredze M, Cohen JE, and Ayers JW. They're heating up: Internet search query trends reveal significant public interest in heat-not-burn tobacco products. PLoS One, 2017; 12(10):e0185735. Available from: https://www.ncbi.nlm.nih.gov/pubmed/29020019

6. Tobacco Tactics. Newer nicotine and tobacco products: Imperial Brands.  2023. Available from: https://tobaccotactics.org/article/newer-nicotine-and-tobacco-products-imperial-brands/.

7. Jenssen BP, Walley SC, and McGrath-Morrow SA. Heat-not-burn tobacco products: Tobacco industry claims no substitute for science. Pediatrics, 2018; 141(1). Available from: https://www.ncbi.nlm.nih.gov/pubmed/29233936

8. Du L and Huang G. Fight for new cigarette substitute heats up Japan: QuickTake Q&A. Bloomberg Politics,  25 June 2017. Available from: https://www.bloomberg.com/news/articles/2017-06-25/fight-for-new-cigarette-substitute-heats-up-japan-quicktake-q-a

9. Tobacco Tactics. Heated tobacco products.  2023. Available from: https://tobaccotactics.org/article/heated-tobacco-products/.

10. Hair EC, Bennett M, Sheen E, Cantrell J, Briggs J, et al. Examining perceptions about IQOS heated tobacco product: consumer studies in Japan and Switzerland. Tobacco Control, 2018; 27(Suppl 1):s70-s3. Available from: https://www.ncbi.nlm.nih.gov/pubmed/29764957

11. Food and Drug Administration (FDA). FDA permits sale of IQOS Tobacco Heating System through premarket tobacco product application pathway.  2019. Available from: https://www.fda.gov/news-events/press-announcements/fda-permits-sale-iqos-tobacco-heating-system-through-premarket-tobacco-product-application-pathway.

12. Tobacco Tactics. Heated tobacco products: Philip Morris International.  2023. Available from: https://tobaccotactics.org/article/heated-tobacco-products-philip-morris-international/.

13. Japan Tobacco Inc. JT Group launches Ploom X: The next generation heated tobacco device hits stores across Japan on August 17th.  2021. Available from: https://www.jti.com/sites/default/files/press-releases/documents/2021/jt-group-launches-ploom-x-2021july.pdf.

14. WHO Study Group on Tobacco Product Regulation. Report on the scientific basis of tobacco product regulation: Seventh report of a WHO study group. Geneva: WHO, 2019. Available from: https://www.who.int/publications/i/item/who-study-group-on-tobacco-product-regulation-report-on-the-scientific-basis-of-tobacco-product-regulation-seventh-report-of-a-who-study-group.

15. Philip Morris International. Over 30 years of innovation.  Available from: https://booklet.pmiscience.com/ths-evolution-html/index.html.

16. Gornall J. British American Tobacco puts tobacco in new e-cigarette. British Medical Journal, 2015; 351:h6314. Available from: https://www.ncbi.nlm.nih.gov/pubmed/26604194

17. Lee J and Lee S. Korean-made heated tobacco product, 'lil'. Tobacco Control, 2019; 28(e2):e156-e7. Available from: https://www.ncbi.nlm.nih.gov/pubmed/30166426

18. Euromonitor International. World market for tobacco.  2023. Available from: https://www.euromonitor.com/world-market-for-tobacco/report.

19. Tobacco Reporter. Turning up the heat: Heated-tobacco products continue to gain momentum, although consumption patterns are shifting.  2024. Available from: https://tobaccoreporter.com/2024/04/01/turning-up-the-heat-4/.

20. Can Philip Morris provide some positive IQOS news in the second quarter? Forbes,  2018. Available from: https://www.forbes.com/sites/greatspeculations/2018/07/17/can-philip-morris-provide-some-positive-iqos-news-in-the-second-quarter/#5262930c2780

21. Caplinger D. What Philip Morris international's IQOS recovery means for its future. The Motley Fool,  2019. Available from: https://www.fool.com/investing/2019/04/29/what-philip-morris-internationals-iqos-recovery-me.aspx

22. Duprey R. Maybe Philip Morris' IQOS e-cig won't be a big hit after all. Yahoo Finance,  2018. Available from: https://finance.yahoo.com/news/maybe-philip-morris-apos-iqos-133000173.html?guccounter=1

23. Tobacco Reporter. IQOS surpasses Marlboro in revenue.  2024. Available from: https://tobaccoreporter.com/2024/02/08/iqos-surpasses-marlboro-as-revenue-generator/.

24. Tobacco Reporter. The heat is on.  Available from: https://tobaccoreporter.com/2023/07/01/the-heat-is-on-2/.