Key Points
- Lil reached 47.4% of Korea’s heated tobacco stick market in Q1 2026.
- Korea’s heated tobacco market grew from 440 million packs in 2021 to 660 million packs in 2024.
- KT&G is expanding NGP through technology, product platforms and overseas markets.
- NGP sales reached 890.1 billion won (approximately US$650 million) in 2025.
- Lil products are available in 34 markets.
- KT&G filed 4,694 NGP-related patent applications between 2022 and 2024.
2Firsts
July 23, 2026
KT&G’s heated tobacco brand Lil is strengthening its leadership position in South Korea while expanding globally through technology development, product platforms and international growth.
According to South Korea’s UpKorea, Lil held a 47.4% share of Korea’s heated tobacco stick market in the first quarter of 2026, up 1.4 percentage points from the previous year.
KT&G said Lil’s growth has been driven by product improvements, portfolio expansion and distribution development.
Lil Maintains Leadership in Korea’s Heated Tobacco Market
South Korea’s heated tobacco market has expanded rapidly in recent years.
Market data cited by UpKorea showed that heated tobacco stick sales increased from 440 million packs in 2021 to 660 million packs in 2024, representing roughly 50% growth over three years.
While overall tobacco sales declined, heated tobacco products increased their market share, accounting for 18.4% of total tobacco sales in Korea in 2024.
KT&G said Lil became Korea’s leading heated tobacco brand in the first quarter of 2022 and has maintained its position since then.
NGP Becomes a Key Growth Business for KT&G
Lil is part of KT&G’s broader next-generation products (NGP) strategy.
The company reported NGP sales of 890.1 billion won (approximately US$650 million) in 2025, compared with 279.3 billion won in 2020.
NGP sales grew at an average annual rate of about 26% over five years.
The share of NGP in KT&G’s tobacco business revenue increased from 9% in 2020 to 20% in 2025.
Regional NGP revenue in 2025 included:
- Korea: 587.3 billion won;
- Overseas markets: 302.8 billion won.
KT&G said NGP is developing from a domestic growth-support business into a major international growth platform.
Lil Uses Multiple Product Platforms
KT&G has built multiple Lil product platforms rather than relying on a single device.
The company currently operates:
- Lil Solid;
- Lil Hybrid;
- Lil Able.
The platforms target different consumer preferences, including direct heating, hybrid heating and multi-stick compatibility.
KT&G said it continues improving heating performance, charging speed, preparation time and overall user experience.
The latest Lil Able 3.0 device was launched in 2026 and expanded through Korean convenience store channels.
Technology and Patents Support Global Competition
KT&G said technology development and intellectual property accumulation are central to Lil’s competitiveness.
Between 2022 and 2024, KT&G submitted 4,694 NGP-related patent applications.
By the end of 2025, the company held 16,751 registered intellectual property rights, including 12,929 overseas rights, representing about 77% of the total.
KT&G said stronger regulatory requirements worldwide make technology protection, product design and intellectual property capabilities increasingly important.
KT&G Expands International Presence
Beyond Korea, KT&G is expanding Lil globally.
The company said Lil products are now available in 34 markets.
Compared with Korea’s mature market, KT&G sees overseas heated tobacco markets as offering further growth opportunities.
Philip Morris International’s IQOS remains the global leader in heated tobacco, but KT&G aims to strengthen international competitiveness through domestic market experience, technology development and overseas partnerships.
Heated Tobacco Competition Moves Toward Technology and Platforms
As combustible cigarette markets continue changing, competition among heated tobacco companies is shifting toward:
- technology development;
- product platforms;
- consumer experience;
- global market execution.
KT&G’s Lil strategy shows the company’s ambition to move beyond a Korean market leader and become a larger global participant in smoke-free products.
For the industry, future heated tobacco competition will depend not only on device sales but also on long-term technology capabilities, supply chains and international operating systems.
Follow 2Firsts for the latest updates on global tobacco and nicotine companies, market developments and business trends.
Cover Image source: UpKorea / KT&G
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