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.
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