Japan Tobacco Expands Market Reach in the Philippines

According to the report by the Manila Bulletin on December 7th, Tatsuya Shiga, the head of Japan Tobacco's (JT) Kansai factory, recently visited the company's factory in the Philippines.

After visiting the Kansai factory in Kyoto, the manager noted that the Malvar factory in Batangas Province, Philippines produces traditional cigarettes. In comparison to the Kansai factory, the Malvar factory is newer and equipped with modern machinery.

It is reported that the Kansai factory not only produces combustible cigarettes but also manufactures 18 types of replacement cartridges for Ploom X, making it the only factory among the three factories in Japan that produces heated tobacco products for the domestic market. When asked if there is a possibility of producing Ploompods in the Philippines in the future, the spokesperson stated that it may be considered if Ploom's sales in the Philippines are significant enough.

John Freda, General Manager of Japan Tobacco International (JTI) Philippines, stated that the introduction of Ploom is another important milestone for the company's expansion in the Philippines market. This marks the first time a company outside of Japan has launched the brand in Asia, demonstrating the company's commitment to further expanding its market presence.

Currently, JTI Philippines is selling Ploom X Advanced devices in select retail stores and online in the Greater Manila area.

Erika Viveiros, Market Director of JTI Philippines, stated that the launch of Ploom X Advanced aims to meet the growing demand for heated tobacco products in the country.

JT stated that while traditional cigarette sales continue to decline, the expected annual growth rate for heated tobacco products and reduced risk products (RRP) is projected to be around 8% from 2022 to 2035. From 2024 to 2026, the company plans to invest around 450 billion yen ($3 billion) in the development of RRP, particularly in the expansion of its heated tobacco business driven by Ploom, in order to further grow its market share.

In the global market, JT aims to expand the market scope of Ploom X to more than 40 countries by 2026, including the Philippines. The company has stated that there are currently no plans to produce Ploom X in locations other than Japan and Poland. According to JT's mid-term growth forecasts, by 2035, the sales of heated tobacco products like Ploom X are expected to surpass traditional cigarettes.

Although JTI Philippines did not disclose their sales target for Ploom X locally, they stated that last month's product launch reflects their determination to "continuously commit to long-term business development in the Philippines.