Global cigarette sales have continued to decline under tobacco control policies. Under the pressure of stricter tobacco control policies and increased consumer health awareness, sales of traditional tobacco dropped from 121.169 million boxes in 2014 to 110.214 million boxes in 2018. At present, the United States, the United Kingdom, the European Union, Japan, New Zealand and South Korea have approved the sale of heated non-burning tobacco in their countries. In the near future, Foresight believes that the Chinese market will explode due to the similar taste and more than 90% harm reduction ability of heated non-burning tobacco compared with traditional cigarettes.
Global tobacco competition pattern Chinese tobacco accounts for about one-third
At present, there are more than one billion smokers in the world, accounting for about a quarter of the world's population. As the country with the largest number of golden ball smokers, China has a huge market. Due to China's monopoly on the tobacco industry and strict market access system, few foreign tobacco brands enter the Chinese market. China National Tobacco Corporation is 100% held by The State Council, forming a dominant pattern in the market. From the perspective of the international market, the tobacco industry is mainly monopolized by five tobacco companies, namely China Tobacco, Philippo International, British American Tobacco, Japan Tobacco and Imperial Tobacco, accounting for 30%, 17.5%, 13.3%, 9.8% and 4.9%. Globally, traditional tobacco competition pattern has been solidified, new tobacco enterprises in the traditional tobacco field is difficult to break through, only to tap new demand, precise positioning of consumer groups, innovative marketing can be outstanding.
The need to reduce harm drives the development of new tobacco
As an electronic alternative to cigarettes, new tobacco cigarettes have a similar look, smoke, taste and feel to cigarettes. They are increasingly popular because they do not contain the 7,000 harmful chemicals found in cigarette smoke.
The new tobacco can be divided into heating non-combustion cigarettes and vapor-type e-cigarettes according to different ways of smoking. Vaping e-cigarettes are made by electrically heating the oil and passing it through a nebulizer to produce smoke for the purpose of smoking nicotine. And heating is not burning cigarette (HNB) is on the premise of not burning tobacco, let the tobacco aroma of flue-cured tobacco, since there is no burning tobacco, tobacco smoke can release nicotine and other chemicals, but using heat produced by the smoke aerosol than conventional cigarettes after burning smoke less harmful material, 90-95% at the same time, do not produce smoke and soot.
Heating non - burning cigarettes is expected to replace traditional cigarettes
The reason for the rapid popularity of electronic atomized cigarette is not only because of its health factors such as no tar and other carcinogens, but also because of its certain fashion and entertainment, young people will form the so-called "smoke circle". In terms of replacing traditional cigarettes, the most important thing is the experience and taste of smoking, and heating non-burning products is obviously better in this respect. On the one hand, the tobacco shells made from solid tobacco are closer to the texture of traditional cigarettes. On the other hand, since the shells are made from nicotine-containing tobacco rather than cigarette oil, they are more acceptable to traditional smokers in terms of taste and experience.
As is known to all, the sale of IQOS, a well-known brand of non-burning heated tobacco, is prohibited in China. However, the trend of new tobacco products such as non-burning heated tobacco products has become a trend. Domestic traditional tobacco companies are also accelerating the development of non-burning heated tobacco products, and the state and relevant departments are also accelerating the establishment of a regulatory mechanism for new tobacco products. In terms of the gradual implementation of the national reform on tobacco products, the future of new domestic tobacco products will be significantly improved. This is not only the reform of the tobacco industry, but also the appeal of people to health, the new wave of tobacco, is rapidly hit.
Patents for heating smoke without burning are gaining momentum
By the end of 2019, China had 9,278 patents related to heating non-burning smoke, according to a search for "heating non-burning smoke" on Soopat. On the whole, the number of applications for heated non-burning tobacco in China showed an increasing trend from 2013 to 2018, and decreased slightly in 2019. The number of HNB related patent applications in 2019 was 855.
Although our country now temporarily not by heating not burning cigarette sales approval, but through on Soopat "heating combustion smoke" search, by the end of 2019, our country ZhongYan group has to speed up the heating is not burning smoke related areas of research and development, including yunnan ZhongYan industrial co., LTD in China apply for the largest number of heating is not burning smoke, in 187, It was followed by China Tobacco Hubei Industry Co LTD with 130 applications.
The new tobacco market has great potential
According to data released by China Tobacco Network in October 2019, the number of new tobacco consumers in China continued to rise from 2013 to 2018. The number of new tobacco consumers in China was about 8.85 million in 2018, up 20.1% year on year. With the continuous improvement of people's health awareness, the increasingly strict tobacco control measures in major tobacco consuming countries around the world, and the liberalization of China's policy of heating cigarettes without burning cigarettes in the future, it is forecasted that the number of new tobacco consumption in China will maintain a growth rate of more than 20% from 2019 to 2025, and exceed 30 million in 2025.