Japan’s Heated Tobacco Tax Changes Reshape Consumer Choices, Survey Reveals Impact of Price and Income

Jul.24
Japan’s Heated Tobacco Tax Changes Reshape Consumer Choices, Survey Reveals Impact of Price and Income
A consumer survey by Japanese heated tobacco information platform RELAZO found that rising tobacco prices and planned heated tobacco tax changes may influence smoking decisions among Japanese consumers. The survey covered 49,879 men and women aged 20 to 69 nationwide. It found that around 40% of respondents cumulatively indicated they may consider quitting when a pack reaches ¥600 (approximately US$4.1), while nearly 90% expressed potential quitting intentions at a ¥1,000 (approximately US$6.8) price level. The survey also found significant differences by income level, with lower-income respondents showing greater sensitivity to price increases.

Key Points

  • RELAZO surveyed 49,879 Japanese consumers aged 20 to 69.
  • Around 40% of respondents indicated potential quitting intentions at a ¥600 (approximately US$4.1) price level.
  • Nearly 90% indicated potential quitting intentions at a ¥1,000 (approximately US$6.8) price level.
  • Lower-income groups showed greater sensitivity to tobacco price increases.
  • Heated tobacco accounted for 39.9% of current smokers’ main tobacco choices.

2Firsts

July 24, 2026

As Japan moves forward with heated tobacco tax adjustments, the impact of tobacco price increases on consumer behavior has become a market focus.

According to a consumer survey released by Japanese heated tobacco information platform RELAZO, some Japanese consumers may reconsider their smoking choices as tobacco prices rise.

The survey covered 49,879 men and women aged 20 to 69 nationwide and examined how price changes could affect smoking behavior and quitting intentions.

Heated Tobacco Becomes Major Choice Among Japanese Smokers

RELAZO’s survey showed that current smokers accounted for 22.9% of respondents, while 24.3% said they previously smoked but had quit, and 52.8% had never smoked.

Among current smokers, combustible cigarettes remained the most common choice at 57.5%, followed by heated tobacco products at 39.9% and VAPE products at 1.3%.

The findings suggest heated tobacco has become an established consumption category among Japanese smokers.

In recent years, brands including IQOS, glo and Ploom have expanded their presence in Japan’s tobacco market.

Rising Prices May Influence Consumer Decisions

RELAZO asked cigarette and heated tobacco users how they would respond to future price increases linked to tax changes.

The survey found that 49.6% of respondents wanted to continue using their current products despite price increases, while 25.6% would consider switching to cheaper products and 17.4% would consider quitting.

The results suggest that price increases may not immediately change all consumer behavior but could become a factor in reassessing smoking habits.

¥600 (Approx. US$4.1) Emerges as Potential Price Turning Point

RELAZO examined quitting intentions at different tobacco price levels.

The survey found that when prices reached ¥600 (approximately US$4.1) per pack, cumulative quitting intentions reached around 40%. At above ¥700 (approximately US$4.8), the cumulative share rose to about 60%, while at ¥1,000 (approximately US$6.8), nearly 90% of respondents indicated potential quitting intentions.

However, the figures represent stated intentions under hypothetical pricing scenarios rather than actual quitting rates.

The survey suggests that rising prices may serve as a trigger for some consumers to reconsider tobacco use.

Income Differences Affect Price Sensitivity

RELAZO analyzed how income levels influenced responses to higher tobacco prices.

Among respondents from households earning less than ¥4 million (approximately US$27,000) annually, 47.0% indicated potential quitting intentions when prices reached ¥600.

Among those with household incomes above ¥15 million (approximately US$102,000), the figure was 25.6%.

The difference suggests that income levels may influence how consumers respond to tobacco price increases.

For lower-income households, higher tobacco costs may place greater pressure on daily expenses.

Financial Pressure Becomes Major Quitting Factor

Among respondents who had successfully quit smoking, RELAZO examined their reasons for quitting.

The leading factors included:

  • Rising tobacco costs or saving money: 27.9%;
  • Concerns about future health: 27.2%;
  • Illness or health problems: 18.4%.

The findings suggest financial pressure and health concerns are both important drivers of quitting decisions.

Tax Changes May Further Reshape Japan’s Tobacco Market

Japan has continued adjusting its tobacco tax framework, with heated tobacco taxation changes expected to influence product pricing.

As prices rise, consumers may choose between continuing their current products, switching to lower-cost alternatives or quitting.

For tobacco companies, pricing strategies, product positioning and changing consumer structures will become increasingly important competitive factors.

For the heated tobacco industry, tax reforms may influence not only prices but also consumer choices between tobacco product categories.

Follow 2Firsts for the latest updates on global nicotine markets, consumer trends and regulatory developments.

Cover Image source: RELAZO


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