JTI to Invest $4.4 Billion in Heated Tobacco Push, Aims for 10% Global Share by 2028

Key Points:

·Investment and goals: Japan Tobacco International (JTI) is investing approximately 650 billion yen (approximately $4 billion) with the aim of capturing a 10% share of the global HNB product market by 2028. 

·Market strategy in Korea: JTI plans to relaunch the Ploom X Advanced, expand both online and offline distribution channels, introduce limited edition devices, and expand its product line. 

·Market potential: The market share of HNB products in Korea is expected to increase from 2.2% to 18.4% over the next 7 years, indicating room for growth. 

·Diversified product offerings: JTI will simultaneously strengthen its traditional cigarette brands (MEVIUS, CAMEL) while expanding its HNB product business. 

·Global positioning: Korea is seen as a key strategic market, with emphasis on localized innovation and consumer demand response. 

According to a report by the Korea Economic Daily on June 30th, JTI plans to invest approximately 650 billion yen (around $4 billion) from 2025 to 2027, aiming to secure a 10% share of the global HNB product market by 2028.

Irina Lee, Managing Director of Japan Tobacco International Korea, recently stated in a written interview with The Pioneer Economy that, within six months of her tenure, she has seen significant progress in the company.

"I foresee that in the near future, traditional cigarettes, HNB products, and e-cigarettes will coexist. We plan to invest in product commercialization, research and development, and capital expenditures in the field of heated non-burning products."

Since taking over JTI Korea International on January 1st, she has been focused on the growth potential of the HNB product market in South Korea. JTI Korea International withdrew from the domestic HNB product market in South Korea in 2021, but will launch the "Ploom X Advanced" by the end of 2024 to challenge the market once again. Currently, the domestic cigarette market in South Korea is dominated by three major companies: KT&G, Philip Morris International (PMI) Korea, and British American Tobacco Korea.

Li Yilin expressed that:

"According to the data from the Ministry of Planning and Finance's "2024 Tobacco Market Trends," the market share of HNB products in the South Korean tobacco market has increased by 9 times in just 7 years, rising from 2.2% in 2017 to 18.4% in 2024. I believe that the South Korean market has even greater growth potential than it currently does. Since the launch of Ploom X Advanced, we have been expanding our points of contact with consumers. Since the beginning of 2025, we have not only been selling devices through the Ploom official website, but have also expanded sales through major public markets in South Korea such as Naver and Coupang. Additionally, we continue to engage in two-way communication through our official KakaoTalk channel."

In addition, the company stated that:

"We plan to strengthen our brand portfolio by launching limited edition device 'Aqua Halo' (the first Ploom X Advanced device with a back cover) and expanding our product line with dedicated stick 'MEVIUS for Ploom' in the near future."

Japan Tobacco International's Korean branch plans to further expand its share of the domestic cigarette market in South Korea this year. The tobacco product department, represented by "MEVIUS" and "CAMEL" brands, has seen steady growth in market share with the introduction of new products. As the user base of Ploom X Advanced devices expands, it is expected that the market share of the HNB product department will continue to grow in the future.

Li Yilin said:

"Our top priority is to ensure and enhance the strong competitiveness of the JY International brand and products in the Korean market. We see Korea as a global strategic market. We will listen to the voices of Korean consumers and offer a variety of high-quality products in the cigarette and HNB product categories to meet the increasingly segmented needs of consumers."