The global heat-not-burn market size is expected to reach USD 68.3 billion by 2027, registering a CAGR of 32.8% from 2020 to 2027, according to a new report by Grand View Research, Inc. The growth is driven by rising demand for Reduced Risk Products (RRPs) as they are considered less harmful to health. The rise in marketing campaigns coupled with growing approvals by the governing bodies such as U.S. Food and Drug Administration (FDA) and other governing bodies from Asia and Europe is anticipated to fuel the heat-not-burn (HNB) device market growth. The growing advertising campaigns, rising number of tobacco shops, and improved marketing strategies are anticipated to create growth opportunities for the market.
The growing purchasing power of consumers is expected to drive the acceptance of heat-not-burn products over the forecast period as these products are marketed as premium products. Leading manufacturers operating in Italy, Germany, U.S., South Africa, and Croatia are involved in product launches with focus on specialty and premium heat-not-burn products. However, numerous countries, such as Uruguay, and Singapore have banned the distribution and sale of heat-not-burn products, which is hindering the heat not burn devices market growth.
The usage of HNB device is believed as an effective technique to quit smoking, as it is less harmful, toxic, and generates vapor instead of smoke. The acceptance of the device is likely to increase, mainly among individuals willing to quit smoking or willing to smoke just for recreation purposes. Hence, the launch of innovative and new heat-not-burn devices, such as IQOS MESH, and PLOOM Tech is expected to increase the popularity of these devices, which would further propel the growth of the market.
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Further key findings from the report suggest:
- The loose-leaf component segment is anticipated to grow rapidly over the forecast period as it is a natural substance offering a superior experience
- The online distribution channel is forecasted to witness phenomenal growth, as the vendors are using e-commerce and social media platforms, such as Facebook and Instagram to promote their devices
- The newsstand retail store segment is expected to witness the highest CAGR from 2020 to 2027. The newsstands are easily accessible to customers as they are present at every road corner. Hence, they can be considered as ideal locations to vend heat-not-burn devices
- The market demand in Europe region is anticipated to grow at a significant rate. This can be attributed to the presence of major manufacturers such as Philips Morris International, Japan Tobacco International, and British American Tobacco in major European countries such as U.K., Italy, Poland, Croatia, and Germany.