IQOS Illuma Overtakes Lil as Market Leader in Seoul

According to information from wholesalers in the Seoul region, at the beginning of this year, the two major rivals in the South Korean heated tobacco market, KT&G and Philip Morris Korea, switched positions in the Seoul market, with Philip Morris' IQOS series of products surpassing KT&G's Lil series in market share.

So far, the new product "IQOS Illuma" from Philip Morris Korea has only been sold in a few cities, including Seoul. As a result, the market share in Seoul is considered a reliable indicator of the national market performance following its release.

2FIRSTS, based on sales data from five chain convenience stores in Seoul in January of this year, has drawn up a comparison of the market share of KT&G's dedicated heating pods "Mix", "Fit" and "Aim" in January compared to the same period for Phimoko Korea's dedicated heating pods "Heets" and "Teria".

Data source: biznewsdaily | Graphics: 2FIRSTS

KT&G's market share has significantly declined from its third quarter 2022 share of 48.5%, suggesting that the company's dominant position in the heated tobacco market is disappearing.

According to data, the exclusive pod "TERIA" of "IQOS ILUMA" increased its share from 16.4% in the first week of January to 18.8% in the fourth week, while the exclusive pod "Aim" of "Lil Aible" only had an average share of 2.4% during the same period.

Finally, KT&G's market share is not driven by new products, but by the existing Lil Hybrid 2.0 and Lil Solid 2.0 dedicated heating pods. "Mix" has an average market share of 29.3% in January, while "Fit" holds 10.5%. On February 14, 2023, British American Tobacco (BAT) is expected to release a new heated tobacco product, Glo, in Korea. As a result, KT&G's market share is expected to be further diluted, according to 2FIRSTS.

In the third quarter of 2022, KT&G became the largest heated tobacco manufacturer in South Korea for the first time. However, whether KT&G can maintain its position will depend on the national sales performance of IQOS Illuma and Glo.

Reference:

[Exclusive] IQOS regains its title as the top e-cigarette in the Seoul area, overtaking KT&G.

Further reading:

KT&G and PMI compete for the top spot in the South Korean market.

It is expected that KT&G will have a market share of 66% in the electronic cigarette market in South Korea.