Cigarettes Are Changing—Not Dying: What NGPs Are Teaching Traditional Tobacco
——The June 6 2Firsts event will spotlight how cigarettes and NGPs are beginning to converge
In the ongoing evolution of nicotine delivery, cigarettes are being re-evaluated—not simply replaced, but restructured. Amid a shifting global market, where next-generation products (NGPs) increasingly dominate innovation and investment, traditional cigarettes face a new question: if they are not the future, can they still be part of it?
On June 6, global tobacco media and consultancy 2Firsts will host the Global Novel Tobacco Market Trends Forum, featuring a dedicated session on the structural convergence between cigarettes and NGPs. For the first time, the conversation will focus not on binary opposition, but on how new technologies, consumer preferences, and regulatory forces are forging a hybrid innovation landscape—where the boundary between “old” and “new” is no longer clear.
When Innovation Moves Elsewhere
Over the past decade, major tobacco companies have gradually scaled back R&D in traditional cigarette categories. PMI, in particular, has shifted the majority of its innovation investment into smoke-free platforms. According to its Q1 2024 earnings report, 42% of PMI’s net revenue already comes from NGPs, a figure expected to surpass cigarettes entirely by 2025.
This strategic pivot has created a vacuum of innovation in cigarettes. If the introduction of flavor capsules—pioneered by PMI—was the last systemic, global-scale innovation in cigarettes, then little else has followed since. And yet, innovation hasn’t stopped—it has simply changed direction.
NGPs such as heated tobacco, vapor products, and nicotine pouches have undergone two decades of rapid iteration. These innovations, once developed in isolation, are now influencing the broader tobacco ecosystem. Flavor systems, filter structures, sensory design, and even device aesthetics originally created for NGPs are increasingly being applied back into cigarettes.
KT&G of South Korea provides a compelling example. While aggressively expanding its heated tobacco business, the company has simultaneously used NGP technologies and materials to reinvigorate its cigarette offerings—suggesting a different path forward: integration, not obsolescence.
Key Speakers: A Rare Cross-Category Dialogue
This year’s 2Firsts event brings together leaders from manufacturing, flavor innovation, and global policy analysis:
● Germany’s Arethia Group
Talk: “A Taste for Change: The Future of Tobacco Flavors”
Arethia, founded in 1954, oversees Hertz Flavors and Flavoriq—serving both cigarette and NGP sectors across more than 70 countries. The group is currently building one of Europe’s largest flavor manufacturing plants in Hamburg, reinforcing its central role in product innovation.
● Weifeng Wen, Director of Taiwan Miaoli Tobacco Factory
Talk: “When Tradition Meets Change: Reconstructing Cigarettes for a New Era”
As Taiwan’s only bonded cigarette factory, Miaoli has preserved heritage craft while actively developing cross-category capabilities—including production lines for heated tobacco, e-cigarette capsules, and biodegradable filters. Its trajectory exemplifies how traditional manufacturers are adapting through technical and modular innovation.
● Echo, Co-Founder of 2Firsts
Talk: “From Legacy to Leap: Global Trends in Tobacco Product Integration”
Echo will present a macro overview of policy, market restructuring, and product convergence, offering insight into how integration—not substitution—may define the next era of product development.
From Substitution to Structural Alignment
The industry has long framed cigarettes and NGPs as competitors. But that binary lens is rapidly losing relevance. What’s emerging instead is a “convergence corridor”—a space where materials, formats, and consumer experiences once associated with NGPs are now reshaping how cigarettes are designed, positioned, and regulated.
This is not about defending cigarettes. It is about recognizing that they, too, are being reshaped by the very forces driving harm reduction: technology, consumer behavior, and regulatory evolution.
As regulators and public health advocates debate risk hierarchies and innovation thresholds, manufacturers are experimenting with hybridized designs, modular components, and cross-category production platforms—many of which blur the line between past and future cigarettes.
About the Institutions
Arethia Group (Germany)
Founded in 1954, Arethia is a leading global flavoring company serving both the cigarette and NGP markets. Its dual-brand structure—Hertz Flavors and Flavoriq—positions it at the forefront of cross-category innovation. The group is currently building a new flagship plant in Hamburg, set to become one of Europe’s largest tobacco flavor manufacturing facilities.
Taiwan Miaoli Tobacco Industry Corp.
Established in 2011, Miaoli is Taiwan’s only bonded cigarette factory, offering full-category manufacturing from traditional cigarettes to HNB and e-cigarette components. With export reach to over 60 countries, Miaoli combines heritage processing expertise with next-generation capabilities.
Why This Forum Matters
As the global tobacco industry reassesses its direction, the June 6 2Firsts event will offer a rare lens into how cigarettes are not disappearing, but being structurally reimagined—informed and influenced by the rapid innovation of NGPs.
For researchers, regulators, and manufacturers navigating this new terrain, understanding this cross-category convergence is no longer optional. It may be the most consequential trend shaping the next generation of nicotine products.
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[For international users who are unable to register via the QR code (as the system is designed for users in China), please contact us at info@2firsts.com.]
