In recent years, heat-not-burn (HNB) tobacco products, as a healthier alternative to traditional cigarettes, have been favored by more and more smokers around the world. However, in China, due to the provisions of the “vape Management Measures”, heated tobacco products are included in cigarette management and are not allowed to be illegally operated in the country. Therefore, many domestic HNB brands were forced to abandon the domestic market and move overseas.
Southeast Asia has become a hot market for major tobacco giants. Japan and South Korea have become the world’s largest heated tobacco markets, but the market has entered a saturation stage, with Philip Morris International’s IQOS occupying most of the market share. Therefore, more companies have begun to explore emerging markets in Southeast Asia, such as Malaysia, Indonesia, the Philippines and other countries, building factories, opening stores and launching new products.
For example, Philip Morris International Malaysia launched its heated tobacco product IQOS ILUMA in the Malaysian market in November 2023. Jinjia Co., Ltd. has established a subsidiary in Indonesia to provide HNB localized production, OEM and supply chain services. In addition, Sichuan China Tobacco has also launched a KUNGFU experience store in Penang, Malaysia, and Hubei China Tobacco’s heated tobacco brand MOK has also been deployed in Southeast Asia. These measures show that major tobacco brands are optimistic about the potential of the Southeast Asian market.
Southeast Asia has a population of approximately 676 million, of which Malaysia, the Philippines and Indonesia are the three countries that legally sell heated tobacco products, with a total population of 423 million. In these countries, about one-fifth of the population is smokers and the tobacco culture is strong, providing broad market prospects for heated tobacco products. The Philippine Department of Trade and Industry (DTI) has publicly stated that it welcomes heated tobacco manufacturers to build factories in the Philippines and is willing to provide multi-country zero-tariff policy support, which shows the local government’s support for the heat-not-burn industry.
According to the latest Euromonitor International survey report, global sales of heated tobacco products will be approximately US$32 billion in 2022, while sales of vape products will be approximately US$19 billion. Sales of heated tobacco products experienced double-digit growth last year. The latest data disclosed by Philip Morris International shows that the total number of its IQOS users has reached 28.6 million. In order to compete for more users, many international tobacco companies and brands, including Philip Morris, are actively developing emerging markets such as Southeast Asia.
ANTY EXPO 2024 Asia International New Tobacco Exhibition will be held at the Malaysia International Convention and Exhibition Center from September 6 to 8 this year. The exhibition, which covers an area of nearly 20,000 square meters, will bring together new tobacco exhibitors including HNB, vapes, snus, and electronic hookah. There will also be exhibitors of herbal atomization series, CBD equipment and other manufacturers and products. This exhibition will attract global agents, distributors and other channel merchants to come and connect, grasp the latest product trends, and explore new tobacco cooperation opportunities.
In this market full of opportunities, veehoo vapes are also actively participating. As a well-known vape brand, veehoo vapes have always been committed to providing users with high-quality, safe and reliable vape products and services. Under the development trend of emerging markets such as Southeast Asia, veehoo vapes are also aware of this opportunity and will increase market expansion and promotion in this region.
Veehoo vape products are known for their superior quality and innovative design. Its product range covers a variety of flavors and smoking methods to meet the needs of different users. In the process of entering the Southeast Asian market, veehoo vapes will launch products adapted to local tastes and focus on communication and interaction with local consumers to better meet their needs.
In addition to product advantages, veehoo vapes will also use platforms such as the New Tobacco Exhibition to cooperate and communicate with other industry-leading brands. By exploring market opportunities and cooperation possibilities with partners in the industry, veehoo vapes can continuously improve their competitiveness and gain broader development space in the Southeast Asian market.
In short, with the global popularity of heat-not-burn tobacco products and the rise of the Southeast Asian market, tobacco giants have entered Southeast Asia and actively explored the heat-not-burn market. As a leading vape brand, veehoo vapes will also seize this opportunity to seek development in the Southeast Asian market and work closely with industry partners to jointly promote the development of the new tobacco industry by participating in activities such as the International New Tobacco Exhibition.
Tags: Tobacco giants enter Southeast Asia，Southeast Asia heat-not-burn market，veehoo vape