The global Heated Tobacco Products (HTPs) market has rapidly gained momentum as a disruptive segment within the tobacco industry, driven by shifting consumer preferences, heightened health awareness, and regulatory pressure against combustible smoking. HTPs, also known as heat-not-burn products, function by heating specially designed tobacco sticks or cartridges at controlled temperatures to release nicotine-containing aerosol without actual combustion, thereby reducing exposure to many harmful chemicals found in traditional cigarette smoke. Introduced commercially in countries like Japan and Italy in 2014 through products such as IQOS by Philip Morris International, HTPs have since experienced exponential uptake across Asia, Europe, and North America. Consumers are increasingly adopting HTPs due to their cleaner use experience no ash, smoke, or strong odor combined with the perception that they are less harmful than cigarettes.
Morris International, British American Tobacco (BAT), and Japan Tobacco International. These companies are investing heavily in research and development to improve heating technologies and develop user-friendly, stylish devices with enhanced battery life and convenience. The “razor-and-blades” business model selling devices at low cost and generating recurring revenue from consumables has been particularly effective in boosting market penetration. North America follows closely, especially after the U.S.
FDA granted modified risk tobacco product (MRTP) status to IQOS in 2019, further boosting consumer confidence. Despite these positive trends, the market faces challenges such as regulatory scrutiny, especially regarding youth access and flavored variants, with regions like the EU already banning flavored HTPs to curb youth appeal. According to the research report “Global Heated Tobacco Products Market Outlook, 2030” published by Bonafide Research, the global Heated Tobacco Products market is projected to reach market size of USD 204.14 Billion by 2030 increasing from USD 40.39 Billion in 2024, growing with 31.67% CAGR by 2025-30. The growth of the global heated tobacco products market is being propelled by a combination of consumer health awareness, government regulations, and product innovation. HTPs appeal to smokers looking for reduced-risk alternatives to combustible cigarettes, as they produce nicotine aerosol by heating tobacco at lower temperatures, thus avoiding the toxic by-products associated with burning. Furthermore, as many countries enact stricter anti-smoking laws and higher taxes on traditional cigarettes, consumers are turning to heat-not-burn products as a legally accessible and socially acceptable substitute.
Regulatory developments have played a major role in shaping the industry; the U.S. FDA’s authorization of IQOS as a modified risk tobacco product marked a milestone for the category, enabling manufacturers to market HTPs as a reduced-exposure option. Innovation is another core growth factor, with manufacturers introducing devices with better heating precision, sleek designs, faster charging, and customizable options, along with an expanding variety of flavored tobacco sticks. British American Tobacco (BAT) is a multinational organization developing tobacco and other advanced tobacco-related products.
The company is known mainly through its cigarette brands, such as Kent, Dunhill, Rothmans, Lucky Strike, and Pall Mall. It also develops vapor products (Vuse), heated tobacco products (glo), and oral nicotine pouches (Velo). The glo HTP brand includes a handheld electronic device with a lithium-ion battery that powers a heating chamber. glo products, which include Pro, Hyper, Hyper+, and Hyper X2 models, are available in 30 global markets, with around 8.8 million customers using these products as of 2022, as stated by the company. Tobacco sticks are the largest product type in the global heated tobacco products (HTPs) market because they serve as the primary consumable element required for the operation of heat-not-burn devices.
These sticks, which are made of processed tobacco compressed into a small cylindrical form, are designed to be inserted into a heating device where they are heated to release nicotine-containing vapor without burning the tobacco. This design mimics the experience of traditional cigarette smoking while significantly reducing the levels of harmful chemicals typically associated with combustion. Tobacco sticks form the core of the HTP system, as each use requires a new stick, ensuring a high volume of repeat purchases. This consumable nature makes them the most revenue-generating component for manufacturers, establishing them as the leading product type in the market.
Furthermore, tobacco sticks are widely accepted by consumers due to their similarity to conventional cigarettes in terms of size, handling, and usage pattern. They offer a smoother smoking experience with less odor, no ash, and reduced emissions, appealing to users who are seeking harm reduction alternatives. The availability of multiple flavors and nicotine strengths enhances consumer choice and satisfaction, encouraging brand loyalty and consistent usage. Leading tobacco companies such as Philip Morris International (with IQOS HEETS and TEREA), British American Tobacco (glo with Neo sticks), and Japan Tobacco International (with Ploom and Mevius sticks) invest heavily in the continuous development and regional customization of tobacco sticks, further driving their adoption across markets.Adult smokers aged 25 to 45 years constitute the largest user demographic in the global heated tobacco products (HTPs) market due to their high smoking prevalence, openness to switching to reduced-risk alternatives, and strong purchasing power.
This age group represents a significant portion of the global adult smoking population, many of whom have been long-time cigarette users seeking less harmful options without fully quitting nicotine. Heated tobacco products, marketed as cleaner and less harmful than traditional cigarettes, have resonated well with this segment, which is mature enough to appreciate the health-conscious positioning of HTPs while being financially capable of investing in relatively expensive heating devices and their consumables. The primary reasons this demographic dominate the HTP user base is their strong desire to reduce health risks without losing the ritual and satisfaction of smoking. Individuals in the 25–45 age bracket are generally more health-aware and exposed to public health messaging.
They often seek lifestyle changes that align with harm reduction principles while still retaining certain habits, and HTPs offer a bridge between quitting and continued smoking. This is especially relevant in countries like Japan and South Korea, where adult consumers in this age group have been early adopters of IQOS, glo, and other leading HTP devices, fueling strong market penetration. Manufacturers target this group with marketing that emphasizes premium aesthetics, innovation, and customization traits that resonate well with working professionals and young urban users. Their higher disposable income compared to younger adults also allows them to invest in starter kits and continue purchasing consumables regularly, making them a lucrative target for brands.The offline sales channel holds the largest share in the global heated tobacco products (HTPs) market due to its widespread accessibility, consumer trust, and regulatory compliance advantages.
Heated tobacco products are relatively new to many markets, and consumers often prefer to purchase them in person through well-established offline outlets such as convenience stores, tobacconists, specialty tobacco shops, duty-free stores, and brand-owned retail outlets. These channels provide the opportunity for consumers to physically examine devices, compare flavors, seek guidance from sales staff, and receive after-sales support, which is particularly important for first-time users unfamiliar with how HTPs work. In regions where heated tobacco products are still building consumer awareness, the offline environment also helps build credibility and brand familiarity through visual merchandising, promotions, and in-store product demonstrations. The key drivers behind the dominance of offline channels is their strong penetration in major markets such as Japan, South Korea, and parts of Europe, where convenience stores and retail shops are the primary access points for tobacco products.
In Japan, for instance, a significant proportion of IQOS and HEETS purchases are still made through physical stores, owing to the convenience and trust associated with retail transactions. Offline availability also allows manufacturers to create curated experiences for their premium products. Many companies, including Philip Morris International and British American Tobacco, have launched exclusive retail stores and kiosks in high-traffic areas to provide immersive brand experiences and personalized customer service, further boosting product engagement and loyalty.The regular flavor category is the largest in the global heated tobacco products (HTPs) market because it closely replicates the familiar taste of traditional tobacco, offering a seamless transition for conventional cigarette smokers switching to heat-not-burn alternatives. For many adult smokers, particularly those in the 25–45 age group who make up the bulk of HTP users, flavor is a critical factor in choosing nicotine products.
Regular or classic tobacco flavor provides the sensory satisfaction and throat hit they are accustomed to, making it the most widely accepted and preferred option in the early stages of product adoption. This preference is especially strong among those who are not seeking novelty or sweetness but instead want to maintain their smoking rituals with a less harmful product. Tobacco companies have strategically emphasized regular-flavored sticks to appeal to the largest possible base of transitioning smokers. Brands such as HEETS (Philip Morris International), Neo sticks (BAT), and Mevius or Camel HeatSticks (Japan Tobacco International) all prioritize regular tobacco variants in their initial product lines.
These sticks are carefully engineered to deliver the full-bodied taste of tobacco while minimizing harshness and without the lingering smell of smoke, making them highly palatable for long-term smokers. Additionally, the regular flavor category is usually the first to receive regulatory approval, especially in countries with strict rules around flavored tobacco products. For example, the European Union banned menthol and other flavored tobacco products, leaving regular tobacco as the default legal option for many consumers.