China's Heat Not Burn Market Has Great Potential

The rise of heat not burn products is late, but the growth rate is relatively fast. In 2019, the market size has reached 15.2 billion U.S. dollars. It is especially popular in Japan and South Korea.

Because heat not burn smoking sets control the heating temperature of sticks at about 300 degrees, sticks can produce smoke that is close to the taste of real smoke and avoid burning. Therefore, many harmful substances caused by burning of traditional smoke are not produced. It is precisely because of this that the increase in health awareness has caused some smokers to try less harmful heat not burn products, which has rapidly increased the penetration rate of heat not burn products.

The current penetration rate of e-cigarettes in China is less than 1%, while the penetration rate of e-cigarettes in the United States is 13%. In 2019, the US's market share of electronic atomization equipment expanded to 66%, and China's 9%. There are 350 million smokers in my country, accounting for 1/3 of the total number of smokers in the world, but the number of e-cigarette consumers in my country is about 1.5-2 million, accounting for 0.47%-0.63% of the total smoking population.

China Tobacco's entry into the track of heat not burn products indicates that this direction is likely to be more promising in the future, and the supervision will be more in line with the market.