The popularity of smoke-free nicotine products in retail industry

Recently, the popularity of smokeless nicotine products has been on the rise in the retail industry, with store owners stocking up on related products.

Philip Morris Limited (PML) believes that in order to obtain greater profits from these products, retailers should maintain reserves of the latest technological advancements in the entire category in order to meet the growing needs of customers.

Kate O'Dowd, Head of Business Planning for PML in the UK and Ireland, has stated that there is intense competition to convert adult smokers to alternative products between convenience stores and large retailers. Manufacturers and their brands are also under pressure to develop and commercialize the most innovative products at a rapid pace to meet the growing demand.

We can see from the data how this competition is challenging the dominant position of traditional categories and accelerating the pace of change in the landscape.

For example, when we examine the market for non-burning heated products in the UK, which is a relatively new product category, we can observe that its growth rate is more than twice that of the e-cigarette category which was introduced at least a decade ago.

O'Dowd referred to PML's first quarter performance data to discuss the promises of the heated non-combustible category. The data revealed that the company's HEETS tobacco sticks hold a market share unit of over 6% of the total sales volume in the heated tobacco industry.

In addition, the company commissioned a survey involving over 1400 convenience retailers to determine whether they would be willing to abandon competition with other stores if it meant they could help their communities shift toward smoke-free options.

More than two-thirds of respondents stated that they will go beyond competing with other stores and work together to help their communities achieve smoke-free environments.

The company stated that in order to further promote the potential of the heated non-combustion category, PML recently launched a new IQOS Originals Duo heated non-combustion product, which is an improvement on the previous IQOS 3 Duo.

The new device includes a kit with a compact, lightweight holder and two packs of HEETS, with a suggested retail price of £39.

PML has announced that its new product utilizes improved design features and the company's heat control technology, which uses flat, wide ceramic blades to heat the tobacco inside the product without producing smoke.

O'Dowd stated that the IQOS Originals Duo is fully compatible with the existing HEETS tobacco sticks, and will soon begin replacing the IQOS 3 Duo without the need for repurchasing or product replacement.

Despite the fact that retailers can now order new kits through PML's digital trade participation platform, the new inventory will be naturally filtered.