NUMBER OF THE DAY
Japan Tobacco is investing this sum through 2027 in its new heated-tobacco device Ploom Aura, aiming to challenge industry giants Philip Morris and British American Tobacco in its home market.
🚬 David vs. Goliath: JT, Japan’s long-established tobacco giant with currently 14% market share in heat-not-burn products, plans to move up to second place with Ploom Aura and an investment of around $4.4 billion. In blind taste tests, 56% of smokers said it tasted the best.
😙 Smoke-free on the rise: Following the launch of Ploom, JT’s stock surged to a record high. In Japan, heated tobacco products are expected to surpass traditional cigarettes in consumption by 2028. PMI already generates nearly 40% of its revenue from “smoke-free” products.
👀 Watch: Japan is the mecca of heated tobacco – 40% of global volume is consumed here. JT is channeling cigarette profits into R&D, marketing, and expanding Ploom Aura. Analysts expect less pressure on Philip Morris’ dominant IQOS (70%) and more direct competition with BAT’s Glo in the same price segment (16%).
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