According to the report of Korea Bizwire, the latest Euromonitor International data show that in 2018, the market value of heat not burn product in Korea reached 1.67 billion US dollars, far exceeding the $453 million in 2017, making it the second largest HNB tobacco market in the world.
In 2018, the total size of the Korean tobacco market is 15.6 billion US dollars, and the growth is expected to be limited by 2023, but Euromonitor International said that the country’s heat not burn market is expected to grow by 21% annually and reach 4.4 billion US dollars by 2023.
“Within less than two years of the first launch of heat not burn products in South Korea, the country has become the second largest market in the world after Japan,” Euromonitor International said in its report, adding that South Koreans are familiar with the use of new device and enthusiastic about high-end technology, so the country can achieve better-than-expected growth.
In addition, Korea’s electronic cigarette market is expected to grow substantially, at the same time the market for heat not burn products is also growing rapidly.
Euromonitor International said that South Korea’s pod system market is expected to grow substantially, reaching $228 million in 2023, a larger growth than this year’s estimated $40 million.
Lee Oryoon, Euromonitor International analyst, said: “Korea is an emerging market for pod system products. After convenience stores begin selling e-cigarettes, the market is expected to grow at a surging rate. These products attract young consumers in particular.