Farmer's Voice

Market overview

In a market currently led by Phillip Morris International (PMI) through its iQOS device (with a current production of Heet sticks ten times greater than that of its main competitor, Japan Tobacco International) - and largely marked by Japan's dominant position in this segment (96 % of sales of heated tobacco are concentrated in this country) - according to data provided by Euromonitor, there is a very significant overall growth expectation for Heat-not-burn: in 2016 this market accumulated global sales of 2 billion dollars and forecasts from the same source point to a volume of 15.4 billion dollars in 2021.

Recalling the latter's role in consumer conversion, it is worth mentioning the particular case of PMI, which is recruiting Freelancers in the United Kingdom who are tasked with promoting smokers to adopt the iQOS. This achievement is worth £ 50 per new customer who purchases an iQOS device

There is no doubt that this market notes a fast growth, but several prominent figures in the sector point out the lack of accountability assumed by the academic community with regard to the health-safety value of this type of products. If, in theory, this way of consuming tobacco reduces the risk to the health of smokers (and, to the limit, those around them), institutions such as the World Health Organization or, in particular in the U.S.A., the US Federal Drug Administration refuse (for now) to favorably favor its use for conventional cigarette substitution. Consequently this market segment will have a slower progress than its potential.

However, the literature has not yet found a sufficient time frame to ensure the benefits of this new category. At the same time, there are some recent academic articles that call into question the "innocuousness" of these products. Nevertheless, the major players in the sector continue to invest in modernizing and training their factories to supply them with new production lines for this segment (as it is the case of PMI in Italy, Germany or more recently in Romania).