July 2026: JT Drives Heated Tobacco Growth with ¥800 Billion Investment Plan
Japan Tobacco Inc. (JT) is sharpening its focus on the next-generation tobacco category, committing ¥800 billion ($5.2 billion) to its heated tobacco business over the three-year period through 2028. The substantial capital allocation reflects a strategic drive to convert recent product momentum into lasting market share, positioned around its flagship device ecosystem.
The centerpiece of this expansion is JT’s latest hardware platform, Ploom Aura. The device surpassed 5 million units sold in May 2026, signaling strong consumer adoption and driving JT’s domestic heated tobacco market share in Japan to 15.8% in the first quarter of 2026. Reclaiming share in Japan carries significant strategic weight: the country serves as the world’s largest and most fiercely contested heated tobacco market, accounting for roughly a third of global sales volume and setting performance benchmarks for international expansion.
Beyond its home market, JT is leveraging Ploom Aura’s commercial traction to scale its international footprint. The company’s heated tobacco portfolio now spans 29 countries, with the Ploom Aura line specifically deployed across 25 international markets. By coupling heavy R&D and commercial investment with an expanding global distribution network, JT is positioning its reduced-risk business as a primary growth engine capable of competing head-to-head with established global category leaders.
July 2026: Japan Tobacco Expands Tobacco-Free Nicotine Sticks Across Europe
Japan Tobacco International (JTI) is expanding the European availability of its LYO tobacco-free nicotine sticks for use with Ploom devices, with the product now available in Spain, Portugal, Germany and Romania. Unlike conventional heated tobacco sticks, LYO contains nicotine but no tobacco and is available in a range of flavours, including mint and fruit variants, with selected products featuring a flavour capsule in the filter.
The expansion is notable from a regulatory perspective. Because LYO sticks do not contain tobacco, they are not classified as heated tobacco products under current EU legislation. As a result, they are not subject to the European Union’s ban on characterising flavours in heated tobacco products, which was adopted in 2022 and came into effect at the EU level in 2023 before being subsequently transposed into national legislation by member states. This provides manufacturers with a pathway to continue offering flavoured consumables for heated-device platforms without using tobacco.
July 2026: Japan Tobacco Launches Zero-Tobacco LYO Heated Sticks in Romania Amid $5 Billion Global Push
Japan Tobacco (JT) has officially introduced LYO, its innovative new line of heated nicotine sticks, to the Romanian market. Designed exclusively for JT’s flagship Ploom heating device, LYO marks the company’s latest expansion into the rapidly growing zero-tobacco segment.
The initial LYO rollout features a menthol-based portfolio crafted with crushable capsule technology to deliver an adjustable flavor boost. The launch includes two distinct varieties: Arctic Mint, which delivers an extra-fresh, crisp mint blast, and Wild Berry, which combines a refreshing menthol base with a burst of rich berry flavor.
The launch of LYO is a strategic move to navigate the European Union’s ban on flavored heated tobacco products. By replacing tobacco substrate with nicotine-infused herbal leaves, such as rooibos, JT can legally offer flavored options to consumers in the EU. With this launch, JT enters a highly competitive global arena for zero-tobacco heatsticks, where LYO will go head-to-head with major rival offerings such as Levia by Philip Morris International, veo by British American Tobacco, and iSenzia by Imperial Brands.
Romania serves as a critical launchpad for JT’s reduced-risk product registry, having hosted the Ploom platform since 2023. LYO is now available nationwide across major retail networks, dedicated Ploom pop-up stores, and online via the brand’s e-commerce platform, www.ploom.ro. This rollout aligns with JT’s aggressive commercial strategy, supported by a previously announced investment of approximately ¥800 billion (around US$5 billion) spanning the 2026–2028 period, with capital heavily prioritized toward the global development and deployment of its heated product portfolio.
June 2026: Philip Morris International Plans IQOS Launch in Argentina Following End of Ban
Philip Morris International (PMI) has confirmed plans to launch its heated tobacco device, IQOS, in Argentina by the end of 2026. The strategic rollout follows a major policy shift by the Argentine government, which recently repealed its long-standing bans on alternative nicotine products.
The market entry was made possible by the publication of Resolution 549/2026 by the Argentine Ministry of Health, paired with ANMAT Disposición 2543/2026. This new regulatory framework officially replaced strict prohibitions dating back to 2011 with a formalized system of mandatory registration, supply chain traceability, and strict controls on non-tobacco flavorings. Crucially, the government paired legalization with high fiscal barriers, subjecting the new categories to rigorous import tariffs designed to align them with the heavy tax burden already borne by conventional cigarettes.
Previously, the strict prohibition framework had prompted PMI’s local subsidiary, Massalin Particulares, to freeze a projected $300 million investment aimed at establishing the heated tobacco category in the country. With the market opening, those investment and logistics plans are being reactivated. The expansion into Argentina comes as PMI searches for fresh growth geographic areas and sales volume growth began reaching maturity in early-adoption markets like Japan and parts of Western Europe.
To offset this plateau, the company has targeted new regions, recently establishing a foothold in Taiwan. Argentina represents a similar target; the country is home to an estimated 7 million smokers who previously lacked legal access to non-combustible tobacco alternatives. Internal corporate projections suggest PMI views the urban consumer dynamics of Argentina as highly comparable to European markets where the devices have historically performed well.
Executing the rollout will require a significantly different logistical footprint than traditional tobacco sales. Because the technology relies on electronic devices, specialized tobacco sticks, and tech support, sales will depend heavily on dedicated specialized retail locations and customized after-sales infrastructure rather than traditional convenience stores. By establishing a formalized presence, PMI aims to convert a portion of Argentina’s large conventional smoking base to its alternative nicotine lines, navigating a highly taxed and heavily monitored environment overseen by local health authority ANMAT.
October 2025: Long-awaited IQOS launch in Taiwan starts with a big fumble
Following years of wait, Philip Morris International (PMI) launched IQOS heated tobacco device and eight tobacco sticks for exclusive use with IQOS in Taiwan. Heated tobacco became avilable in large retail chains, including 7-Eleven and FamilyMart, at a retail price of NT$130 (US$4.25). However, the Ministry of Health and Welfare ordered the removal of all products from shelves on the same day of the release as the inspectors identified that the product packaging did not specify the nicotine content and failed to meet the statutory requirements.
115 inspections took place across the country on the day of launch and Minister of Health and Welfare oversaw the unannounced inspections in convenient stores in Taipei. The Ministry noted that the pack samples sent for approval specified the amount of nicotine and the problem might have occurred during the mass production or shipment process. The mandatory labeling of tar and nicotine on tobacco product packs is based on the Regulations for the Testing Nicotine and Tar Content in Tobacco Products and the Labeling of Tobacco Product Packs.
The ministry will also examine the nicotine content of the products to check if they meet the regulations and PMI would be held accountable to comply with the standards. The legal standard is that no heated tobacco stick is allowed to contain more than 1mg of nicotine. If the lab tests shows that the nicotine content complied with the standard, then PMI would only be at fault only for mislabeling. The results are expected to be available in a week.
Meanwhile, Japan Tobacco (JT) was expected to launch Ploom heated tobacco device and six tobacco sticks for exclusive use with Ploom a few days after PMI’s IQOS launch. It is not clear whether the retail inspections and subsequent removal of IQOS heated tobacco sticks from shelves would cause a delay in JT’s launch play.
June 2025: Imperial Brands launched Pulze 3.0 in Greece
Greece became the first market worldwide for Imperial Brands to launch the new Pulze 3.0 heated tobacco devices. Greece is a key market form Imperial Brands in transformation to new nicotine products with 43% of the net market revenue coming from vapes and heated tobacco in 2024 (- up from 34% in 2023). Imperial Brands sells Pulze heated tobacco devices, iD and iSenzia heated tobacco sticks, rechargable blu vapes and disposable blu Bar and blu Box vapes in Greece – alongside Davidoff cigarettes and Rizla roll-your-own products.
Pulze 3.0 device retails at €25. iD and iSenzia heated tobacco sticks retail at €3 for a pack of 20.
June 2025: Heated tobacco category reaches $38.85 billion in global retail sales in 2024
In 2024, heated tobacco category grew by +12.7% to $38.85 billion global turnover. Heated tobacco sticks make up 93.7% of the global category sales – up +12.6% to $36.4 billion turnover. Device sales grew +11.7% to 45.3 million units, generating USD 2.44 billion in retail turnover (up +14.7% year-on-year basis). Heated tobacco devices are sold for $54 per unit on average (+2.7% year-on-year basis), driven by the Philip Morris International (PMI)’s high-end IQOS platform (IQOS ILUMA). Eight countries exceeded $1 billion in sales, accounting for 73.4% of the global total turnover. Japan ($11.6 billion), Italy ($4.9 billion) and Russia ($2.5 billion) tops the list in terms of turnover.
Heated tobacco stick sales volume increased +10.8% to 178 billion sticks. PMI leads the category with 78% volume share. Six countries surpassed the 5 billion sticks threshold – with Japan (60 billion sticks), Russia (24.3 billion sticks) and Italy (16.4 billion sticks) forming the Top-3 and South Korea, Poland and Ukraine following them. Japan’s share in global heated tobacco sales volume dipped to 34% with growth rates slowing down to high single digits for both devices and sticks.
March 2025: The first heated tobacco authorization decision in Taiwan is expected in April 2025
Two years after amendments to the Tobacco Hazards Prevention Act were put into effect in March 2023, Taiwanese Health Promotion Agency (HPA) is close to issuing its first decision on whether to approve the sale of a heated tobacco product. The amended Tobacco Act allows a path to the authorization of heated tobacco products on a case-by-case basis. Eleven tobacco manufacturers have submitted authorization requests to the Health Promotion Agency (HPA) and six of them have completed the first phase of the approval process (documentation). The second phase, product testing, takes six months and the result of one manufacturer’s application (presumably, Philip Morris International’s IQOS) is expected to be announced as soon as April 2025.
The manufacturer would be authorized to commercialize their product with the appropriate labeling and health warning if it passes the assessment. If the application is rejected, manufacturer can submit product documentation again to restart the process or litigate the outcome by seeking an administrative remedy. Application outcomes will be announced in a staggered manner, as the manufacturers did not complete the documentation phase at the same pace.
October 2024: Japan Tobacco launches Ploom in the Philippines
Japan Tobacco (JT) launches Ploom X Advanced in the Philippines as the first country in Asia, outside of home-market Japan, to introduce JT’s leading heated tobacco platform. Category-leader Philip Morris International (PMI) is already present in the Philippines with its low-priced BONDS by IQOS, mid-priced IQOS and premium IQOS ILUMA devices; in the first 9 months of 2024, PMI sold only 0.2 billion heated tobacco sticks in the Philippines and the category makes up less than 1% of the total (legal) cigarette market.
In November 2024, JT will launch Ploom X Advanced in South Korea, Asia’s second largest heated tobacco market after Japan, where the heated tobacco category already makes up ~21% of the market. Read more: South Korea: Tobacco Market.
Ploom X is now available in 23 markets, including the launches in Jordan and the Philippines in
October 2024, and JT aims to have Ploom present in close to 30 markets by the end of 2024 – covering 80% of the global heated tobacco category volume. Nevertheless, JT still makes 88% of its heated tobacco volume in Japan. The progress achieved in heated tobacco expansion doesn’t seem to be in proportion to the outsized ¥450Bn ($2.9Bn) investment (over the three-year period from 2024 to 2026, mostly in commercial initiatives). Lack of sequential quarterly growth in RRP volume & revenue and limited category shares attained in the expansion markets offer early signals of the difficulty faced by the JT to grow its Ploom franchise. Read more: Japan Tobacco: Q3 2024 Results.
October 2024: Philip Morris International (PMI) will launch compliant IQOS devices in New Zealand
Philip Morris International (PMI) announced that they will soon make available an enhanced range of smokefree devices – IQOS and potentially VEEV – in New Zealand, meeting all new regulatory requirements. Meanwhile, existing consumers can continue to use their current IQOS device and access a range of smokefree consumables in retail.
October 2024: Philip Morris International (PMI) pulls IQOS from sale in New Zealand
Philip Morris International (PMI) is forced to pull IQOS from sale in New Zealand following the regulatory change which became effective on October 1, 2024. From this date on, Electronic Nicotine Delivery Systems (ENDS) – including IQOS – should have removable batteries and child safety mechanisms. IQOS is not compliant with the new ENDS rules. PMI also withdrew VEEV ONE disposable vape from sale for the same reason1.
PMI is a monopoly in the heated tobacco market in New Zealand with its IQOS device; with the removal of IQOS from the shelves, no heated tobacco device is currently left on the market in New Zealand. PMI informed its distribution partners that IOQS is unavailable for purchase due to a regulatory change on 1 October 2024 affecting vaping devices. It is not clear when compliant IQOS devices will placed on the market. Meanwhile, heatsticks are still available for purchase at the retail for the existing IQOS users.
IQOS has been at the center of political controversy since the New Zealand Government cut the excise rate on Heated Tobacco Products (HTPs) by 50% in July 2024 (for a trial period of 12 months) in order to reduce the cost and increase the attractiveness of HTPs as a smoking alternative. The stated objective was to have more than 7000 people switch to HTPs as part of the Smokefree 2025 plan. Being the only player in the New Zealand heated tobacco market, PMI emerged as the sole beneficiary of the tax cut while the Government set aside NZD216 million (US$136 million) to compensate the tax reductions.
Meanwhile, critics continue to question the power of tobacco lobbies in New Zealand following the abolishment of the Generational Tobacco Ban and reduction of the HTP. Uncovered documents reveal that PMI demanded the Government to “establish a tax rate for heated-tobacco products significantly below the tax rate for cigarettes” and NZ First Minister & Associate Health Minister Casey tried to have the “removable battery” regulations delayed for two years. However, the Cabinet only agreed to a six month delay from the original date of 21 March, 2024.
July 2024: PMI revises down FY24 heated tobacco guidance
During the Q2 2024 results release, Philip Morris International (PMI) revised down the heated tobacco in-market-sales (IMS) growth forecast from +14%-16% to +13% and annual shipment volume guidance from “more than 140 billion sticks” to “around 140 billion sticks” for FY24. This corresponds to +11.7% shipment volume growth versus FY23 – underlining the negative impact of the inventory built up in 2023. If IQOS fails to catch a momentum in fresh markets, 2024 (or 2025) could be the last year of double-digit heated tobacco growth for PMI.
PMI states that the majority of the incremental headwind of ~2 billion units to the FY24 IMS forecasts is driven by the ongoing delay in approval for commercialization in Taiwan (- previously expected around the mid of 2024). Moreover, PMI also factors in an impact of a few hundred million units for a slower recovery from the characterizing flavor ban in Europe, mainly in Italy. In our opinion, recovery from the characterizing flavor ban is as open point and requires a debate on whether the competing alternatives (disposable vapes or glo’s veo) could eat into IQOS’s share. Recall: BAT stated that veo (heated herbal product) is launched in 19 markets and strongly outperforming competing products. Read more: BAT: H1 2024 Results
Specifically, on Taiwan: The Taiwanese Health Promotion Administration (HPA) just issued a statement noting that Taiwan has not approved any novel tobacco and nicotine products and users of heated tobacco products and vapes are subject to fines. This follows the publication of a security footage allegedly showing a prominent politician using a heated tobacco product in the legislature’s corridors. Novel tobacco and nicotine products cannot be used or distributed without government approval in Taiwan and the manufacture, import, sale, supply, display or advertisement of unauthorized novel tobacco products is punishable by a maximum fine of NT$5 million according to the Tobacco Hazards Prevention Act. Users may be fined NT$10,000.
HPA received authorization applications for 12 heated tobacco products and rejected eight of them. Additional information is requested from the two of the remaining four applicants. The agency has tasked a panel of toxicology, public health and addiction experts to assess the authorization requests of each heated tobacco product. Restrictions on the marketing and sales of novel tobacco products, tobacco tax collection and other regulatory matters would be duly considered after the evaluation of all applications is complete. Moreover, regional health authorities have been ordered to look into incidents of alleged heated tobacco use by politicians and celebrities.
In brief, authorization of IQOS in Taiwan seems unlikely in the foreseeable future.
June 2024: Japan Tobacco – Geographic expansion of Ploom X
Japan Tobacco (JT) is strengthening the distribution of Ploom X in Poland, outside the core Warsaw agglomeration. The Ploom X device is now available online on the www.ploom.pl website, in the Lagardere chain and select Orlen stations throughout Poland, in Żabka stores in the largest cities (new listing) and in the traditional channel in the Warsaw agglomeration. In Poland, JT employs more than 3,400 people and has a strong presence with a Global Shared Service Center and 4 production facilities, producing a wide range of tobacco including the heated tobacco sticks.
Poland is the second largest heated tobacco market in Europe (after Italy). In FY23, PMI shipped 5Bn heated tobacco sticks to Poland. BAT also has a strong presence in the Polish heated tobacco market with 33% segment share (- the highest heated tobacco segment share achieved by BAT across all markets, except Kazakhstan). We estimate that 7.2Bn heated tobacco sticks were sold in Poland in FY23, corresponding to 12.7% of the total cigarette & heated tobacco market.
With the geographic expansion of Ploom X, heated tobacco market in Poland is set to become more competitive. In 2023, JT announced its plan to invest ¥300+Bn ($2.2Bn) in heated tobacco in the 2023-25 period – two thirds of which will be on commercialization, mainly to support geographical expansion and share gains. In Q1 2024, JT announced that a steady growth has been achieved in the European heated tobacco market since the launch of Ploom X (fueled with expansion in distribution) – capturing a segment share of 1.7% and 1.5% in Poland and Italy, respectively. For further details: Japan Tobacco: Q1 2024 Results.
June 2024: PMI – Heated Tobacco Growth
– At the DB Global Conference, PMI stated that IQOS continue to deliver strong growth across different markets:
– Above 10% growth in the key Japanese market (i.e. 41% weight in PMI’s total heated tobacco shipments in Q1 2024, including the inventory build-up effect): growth fueled by IQOS ILUMA and an expanded range of heatsticks (IQOS consumables) that are proven to be attractive to the Japanese consumers
– New-found growth in European markets such as Germany and Spain (in which IQOS has been less successful so far) => PMI reported +86% and +35% shipment growth in Germany and Spain, respectively, in Q1 2024. PMI’s comments confirm that shipment growth is driven by the amplified consumer momentum (consumer off-take) in these two key EU markets.
– Good traction in Emerging markets, including Indonesia, Egypt, GCC and Mexico.
Japan are significantly lower than elsewhere due to the intense competition for customer acquisition / retention.
February 2024: PMI – CAGNY Conference
PMI claims that there is no slow-down in consumer momentum for the heated tobacco category and the 2024 in-market sales growth will be at a similar level as 2022-23.
Specifically, in Japan, heated tobacco reaches 40% share in the total tobacco market in Q4 2023 (i.e. 37.9% in FY23). PMI outpaces the category growth in FY23 (i.e. 14% in-market sales increase), thanks to the performance of IQOS ILUMA, and increases its segment share from 69.2% (FY22) to 70.5% (FY23). In January 2024, heated tobacco (50.4%) overtakes cigarette (49.6%) in monthly consumer off-take in Tokyo for the first time.
Apart from repeating the traditional statements on “key cities leading the way for national share growth over time” and “IQOS could be successful in emerging markets”, PMI explains its strategy for the low & middle-income markets: establish IQOS ILUMA as the reference premium offer (similar to Marlboro for cigarettes) to build the brand equity and expand the portfolio to different price points through lil and Bonds to capture the full volume potential.
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December 2023: PMI -Morgan Stanley Global Consumer & Retail Conference
PMI provides an update on the IQOS growth outlook and commercial plans:
– High-end of the 180-200Bn target is reachable by 2026 if some key markets allow heated tobacco (note: our “Heated Tobacco Market: 2023-2030” report offers expert assessments and fact-based/granular growth projections prepared by the people in the know)
– IQOS ILUMA is already present in all major heated tobacco markets, except Russia (target: 50 markets at the end of 2023)
– Heated tobacco is now ~40% of the Japanese market and IQOS is gaining share in a highly competitive environment and despite being retailed at 30%-40% premium to the competition
– LEVIA (tobacco-free heatstick) is now available in Czechia
– PMI expects an acceleration in user acquisition in Q4 2023 (in comparison to 200k in Q3 2023)
– No additional disclosures are made about the IQOS launch in the US (Recall: IQOS: The US launch)
– BONDS is available in the Philippines and Colombia as a “good enough” heated tobacco product at a much cheaper price (a global strategy to be drafted based on the launch results and to be shared in 2024)
One notable change: PMI now defines LEVIA as a nicotine substrate in proxy to e-cigarettes (i.e. an electronic nicotine delivery system with no tobacco) or nicotine pouches (i.e. a traditional product being retooled to contain no tobacco).
November 2023 – PMI: IQOS ILUMA roll-out
At the end of Q3 2023, IQOS ILUMA was present in 27 markets which represent ~75% of PMI’s IQOS business by volume. With additional 6 launches, the number of markets reached 33 at the of October 2023. In November, PMI launched IQOS ILUMA in Malaysia, Saudi Arabia, Kuwait, Bahrain and Canada2 (available only in select stores and only with four tobacco flavors) in a pursuit to reach around 50 markets by the end of 2023 and complete the roll-out next year. Considering that IQOS is sold in close to 80 markets, IQOS ILUMA will still not be available in more than 25 markets at the of 2023 (presumably, mostly low-/middle- income markets).
IQOS ILUMA is first launched in August 2021 in Japan. The global IQOS ILUMA roll-out is now set to take about 3 years as the commercialization process has been slowed down the global chip shortage. IQOS ILUMA works with TEREA, SENTIA and LEVIA heatsticks. In markets where ILUMA trademark is not available, PMI introduces IQOS ILUMA as IQOS SMARTCORE INDUCTION SYSTEM.
October 2023: IQOS ILUMA launch in the Philippines
Philip Morris Fortune Tobacco (PMFTC; a 50/50 JV between Philippines’ LT Group and PMI) launches IQOS ILUMA in the Philippines3. IQOS 3 and BONDS by IQOS (a more affordable HnB device; resistive external heating with no blade) are already available in the Philippines and PMFTC earlier reported that about 75,000 Filipino smokers have switched to IQOS since the product was first introduced 3 years ago. PMFTC also expects to launch ZYN in the Philippines soon.
PMFTC owns 62% SoM in the Philippines market. However, the legal cigarette sales volume in the Philippines halved to 52Bn sticks in 2022 from over the past decade (109Bn sticks in 2012) as the sale of cheaper smuggled cigarettes boomed following the massive excise taxes hikes.
September 2023: Ploom X Market Expansion
Japan Tobacco (JT) speeds up the international expansion of Ploom X and announces Romania as the 10th launch country4. The product will be available in select points of sales in Bucharest, as well as on www.ploom.ro. Ploom X is now available Japan, the United Kingdom, Italy, Portugal, Czech Republic, Lithuania, Switzerland, Poland, Hungary and Romania.
JT plans to invest more than JPY300Bn in RRPs globally, mainly in the heated tobacco category, between 2023 and 2025 to support its ambitious geographic expansion.
September 2023: Ploom X Advanced launch in the UK
JT launches Ploom X Advanced, an upgraded version of Ploom X, in the UK5 and Switzerland. The Advanced version brings two improvements: (1) optimized HeatFlow system, offering higher vapour volume during initial puffs; (2) faster charging (<90 minutes for full charge). Ploom heat sticks (“Evo”) retails at £4.5 per pack in the UK. A £19 bundle offer (Ploom X Advanced plus two packs of Evo) is available at retailers within the Greater London area and online.
References:
- https://www.rnz.co.nz/news/in-depth/529583/casey-costello-s-tobacco-tax-cut-plan-stalled-as-device-pulled-from-shelves ↩︎
- Rothmans, Benson & Hedges Launches New Smoke-Free Heated Tobacco Product in Push to Lead Smoking Harm Reduction (newswire.ca) ↩︎
- PMFTC expects more smokers to abandon cigarettes through latest IQOS technology • BMPlus (businessmirror.com.ph) ↩︎
- JTI launches Ploom X in Romania – Business Review ↩︎
- https://www.betterretailing.com/br/product-news/jti-launches-ploom-x-advanced ↩︎
