KT&G Accelerates HNB Expansion: New Central Asia Plant Completed, Leadership Reshuffle, Lil Hybrid 3.0 Enters Japan

Apr.24
KT&G Accelerates HNB Expansion: New Central Asia Plant Completed, Leadership Reshuffle, Lil Hybrid 3.0 Enters Japan
KT&G has announced three key developments in its heated tobacco (HNB) business: the completion of a new factory in Kazakhstan, the appointment of global business expert Hong Dae-hwa as head of the HNB division, and the official launch of the Lil Hybrid 3.0 in Japan on April 15.

Key Points:

1.On April 22, 2025, KT&G announced that its new factory in Kazakhstan has officially been completed.

2. KT&G appoints global business expert Hong Da-hwa as the Head of the HNB Business Division. 

3. Starting from April 15, PMI has begun selling the Lil Hybrid 3.0 in Japan. 

4. Following the collaboration with PMI, KT&G's HNB products have been launched in 34 countries worldwide.


According to The Korea Daily on April 23, 2025, the Korean tobacco company (KT&G) announced that its tobacco factory located in the Central Asian country of Kazakhstan has been completed. The factory will serve as the company's major production and export base for the growing Eurasian market. The new factory covers an area of 52,000 square meters (559,723 square feet) and has three production lines capable of producing 4.5 billion tobacco products per year.

 

KT&G Accelerates HNB Expansion: New Central Asia Plant Completed, Leadership Reshuffle, Lil Hybrid 3.0 Enters Japan
On April 22, 2025, KT&G held a completion ceremony for its new factory in Kazakhstan, which will serve as its production base for the Eurasian market. | Image source: KT&G

 

In addition, KT&G recently appointed Hong Dahwa as the head of the HNB product division, replacing his previous position as head of the HNB product department. With this personnel adjustment, KT&G plans to accelerate the expansion of HNB products in the global market by stabilizing the organizational structure.

 

According to reports, KT&G's HNB product is expected to achieve significant results in the global market this year. The company is accelerating its expansion in overseas markets with its HNB product "Lil Hybrid 3.0".

 

KT&G is collaborating with the global tobacco market leader, Philip Morris International (PMI), to accelerate its expansion into overseas markets. In 2020, KT&G signed a contract with PMI for the overseas supply and sale of HNB products, and in 2023, they signed a long-term contract lasting 15 years (until January 2038).

 

After maintaining a partnership with PMI, KT&G's HNB products have continued to increase in the number of countries they are sold in overseas markets. As of now, their products have been launched in 34 countries worldwide, including Russia, Japan, Italy, Poland, Kazakhstan, Czech Republic, Greece, and more.

 

Especially the overseas sales of the third generation Lil Hybrid 3.0 model are expanding comprehensively, attracting attention to its future growth potential.

 

Starting from April 15th, PMI has begun selling Lil Hybrid 3.0 in Japan, with a sales range that includes various channels such as the official IQOS online store and convenience stores. Considering Japan is the world's largest HNB market, the launch of Lil Hybrid 3.0 is of significant importance.

 

According to data from the market research company IMARC Group, as of 2024, the market size of Heat-Not-Burn (HNB) products in Japan has reached $20.5 billion (approximately 29 trillion Korean won), and is expected to continue growing at a compound annual growth rate (CAGR) of 10.12% until 2033.

 

In 2024, KT&G officially launched the Lil Hybrid 3.0 in Russia. Due to positive market response, the company is actively considering expanding supply. The release of Lil Hybrid 3.0 in other countries is highly anticipated in the future.

 

With the diversification of KT & Ge-cigarette devices leading to an increase in exports, it is expected to have a positive impact on performance.

 

In fact, thanks to the launch of the Russian Lil Hybrid 3.0, KT&G's overseas HNB product sales increased by 29% year-on-year. The introduction of a new HNB product platform is also one of the expected factors for future growth. KT&G introduces new HNB devices every year.

 

Notice

1. This article is provided exclusively for professional research purposes related to industry, technology and policy. Any reference to brands or products is made solely for the purpose of objective description and does not constitute an endorsement, recommendation, or promotion of any brand or product.

2. The use of nicotine products, including but not limited to cigarettes, e-cigarettes, and heated tobacco products, is associated with significant health risks. Users are required to comply with all relevant laws and regulations in their respective jurisdictions.

3. This article is strictly restricted from being accessed or viewed by individuals under the legal age.

Copyright

This article is either an original work by 2Firsts or a reproduction from third-party sources with the original source clearly indicated. The copyright and usage rights of this article belong to 2Firsts or the original source. Unauthorized reproduction, distribution, or any other unauthorized use of this article by any entity or individual is strictly prohibited. Violators will be held legally responsible. For copyright-related matters, please contact: info@2firsts.com

AI Assistance Disclaimer

This article may have utilized AI to enhance translation and editing efficiency. However, due to technical limitations, errors may occur. Readers are advised to refer to the sources provided for more accurate information.

This article should not be used as a basis for any investment decisions or advice, and 2Firsts assumes no direct or indirect liability for any errors in the content.

Japan Tobacco Launches Limited Edition "Aqua Halo" of Ploom X Advanced in Korea from May
Japan Tobacco Launches Limited Edition "Aqua Halo" of Ploom X Advanced in Korea from May
Japan Tobacco International Korea announced that it will launch the first limited edition device "Aqua Halo" of its HTP device "Ploom X Advanced" in South Korea on May 1, priced at approximately $54.
Apr.29 by 2FIRSTS.ai
World No Tobacco Day 2025: Former WHO Executive Director Dr. Derek Yach Calls for Embracing Harm Reduction — A 2Firsts Exclusive
World No Tobacco Day 2025: Former WHO Executive Director Dr. Derek Yach Calls for Embracing Harm Reduction — A 2Firsts Exclusive
To mark World No Tobacco Day 2025, 2Firsts invited Dr. Derek Yach, former Executive Director at the World Health Organization, to share his reflections. In this article, Dr. Yach revisits the origins of WNTD during apartheid-era South Africa, its global rise, and its unfinished mission. He calls on the public health community to more fully embrace tobacco harm reduction and urges the WHO to take stronger leadership in supporting reduced-risk products.
May.29
2Firsts Insight | UK Distributors Rush to Stockpile and Launch Emergency Promotions Ahead of Disposable Vape Ban
2Firsts Insight | UK Distributors Rush to Stockpile and Launch Emergency Promotions Ahead of Disposable Vape Ban
Starting June 1, 2025, the UK will implement a comprehensive ban on the sale of disposable vapes. 2Firsts has observed that vape distributor websites in the UK—such as VapeSourcing, VAPE CLUB, and Vape UK—are urging consumers to stock up while actively promoting alternative products like pod systems and open-system vapes. These platforms have also released user guides to help consumers transition smoothly.
May.21 by 2FIRSTS.ai
GEEKVAPE Launches New Curved-Screen Open-System E-Cigarette with Same Screen as GeekBar Pulse X
GEEKVAPE Launches New Curved-Screen Open-System E-Cigarette with Same Screen as GeekBar Pulse X
Geekvape has recently introduced its new open-system e-cigarette, the Geekvape Digi Q Vista. The product features a 1,600mAh battery and a 3D curved screen similar to that of the Geek Bar Pulse X. The device is now available in the United States and France.
Apr.30 by 2FIRSTS.ai
Goldman Sachs: Chinese Brands Geek Bar and Breeze Surge in U.S. Market as Juul, Vuse Lose Share
Goldman Sachs: Chinese Brands Geek Bar and Breeze Surge in U.S. Market as Juul, Vuse Lose Share
Chinese brands Geek Bar, Raz, and Breeze are quickly rising in the U.S. e-cigarette market, now holding a combined 25.1% share, Goldman Sachs reports. While Vuse and Juul lost ground, Geek Bar Pulse jumped 729%, Raz 233%, and Breeze 105% over the past year.
May.22 by 2FIRSTS.ai
VPR Brands partners with Associated Supply for exclusive distribution in NYC
VPR Brands partners with Associated Supply for exclusive distribution in NYC
VPR Brands, a US-based cannabis vaporizer manufacturer, announced an exclusive agreement with New York-licensed distributor Associated Supply LLC to promote the sale of its ELF brand pre-filled cannabis vapes in the New York market. In 2024, New York's adult-use cannabis retail sales exceeded $1 billion, with cannabis vapes accounting for approximately 27% of that total.
Apr.27 by 2FIRSTS.ai