After several years of development, Korea has become the world’s second largest market for heat not burn products, after Japan.
According to Euromonitor International’s latest data, the market value of heating not burning products in Korea reached US$1.67 billion in 2018, far exceeding US$453 million in 2017.
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 heating not burning market is expected to grow by 21% annually and to reach 4.4 billion US dollars by 2023.
“In less than two years since Korea first introduced its heat not burn products, it 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 response, Lee Oryoon, an analyst at Euromonitor International, a well-known international consultancy, said in an interview with reporters that in addition to the rapid growth of the market for heat not burn products, Korea’s electronic cigarette market has also witnessed substantial growth.
South Korea’s closed pod system market is expected to reach $228 million in 2023, a significant increase over this year’s projected $40 million.
Lee Oryoon, Euromonitor International analyst, said: “Korea is an emerging market for pod system electronic cigarettes. After convenience stores begin selling e-cigarettes, the market is expected to grow at an amazing rate. These products attract young consumers in particular.
Footoon, a well-known electronic tobacco brand in Korea, raised US$3 million in A Round financing recently, which was jointly invested by private equity funds and investors.
Footoon, as the first electronic cigarette factory in the industry to launch double DIY atomizer, is deeply loved by consumers with innovative spirit in its business. As one of the high-end atomizer brands, Footoon has launched Aqua, Aqua V2, Aqua SE, Aqua SE, Aqua UX and other products, which are well-known in the electronic cigarette industry, enjoying equal popularity with the leading brand KAYFUN.
According to Footoon, the investment will be used to boost product development and team building. The company will launch subversive pod systems in the second half of the year. It will be delicate in flavor and vape juice leakage prevention design, which is very worthy of consumers’expectations.
HnB devices, including PMI’s iQOS and KT&G’s lil, have soared to 11.8% of the total e-cig market in South Korean in the past two years.
HnB device is a battery-driven alternative to flammable cigarettes. Its working principle is to heat cigarette sticks containing tobacco leaves. These cigarette cartridges look like short cigarettes, which need to be inserted into the heater with the device on to heat the tobacco.
This product was launched in Korea only two years ago, but according to data released by the Ministry of Economy and Finance in December last year, cigarettes sold 288 million packs in November, of which 35 million packs were substituting products of HnB. This is equivalent to 11.3%, higher than 7.3% of the previous year.
HnB’s total tax revenue has reached 10.7 trillion won
Last December’s report added that Haiti’s National Health and Budget Bureau had accumulated sales of 295.5 million packs of substituting HNB cartridges, accounting for 9.3% of the tobacco market. Meanwhile, the total production and sales tax of all tobacco products in Korea is 10.7 trillion won ($9.5 billion), an increase of 2.6% over the same period in last year. Compared with the same period in 2014, the sales tax increase 63.9% sharply.
Further data released by the government show that HNB sales reached 92 million packs in the first quarter of this year in Korea, an increase of 34% over the same period last year. This is equivalent to an increase of 11.8% at the end of March, 2.2% higher than two years ago.
Following April 8, Jouz held a global new product launch in Tokyo in 2009, released the world’s first flip-flop electronic cigarette Jouz S, and a brand-new upgraded Jouz 20 Pro HNB product, here comes a new big move from Jouz.
Jouz S debuts in Tokyo, Japan
On April 20, jouz officially entered the No. 1 duty-free store in Korea, including its products like jouz 12, jouz 20 and the newly released jouz 20 Pro.
On the day of the news, the jouz counter of LOTTE DUTY FREE duty-free shop in Korea has been crowded by many Korean consumers and the world Korean agent buyers.
Many people may wonder why the first duty-free shop in Korea chose jouz to stay in the context of the fierce competition in the global electronic cigarette market. Through analysis, it is believed that this is related to the market performance of jouz before .
In 2018, as soon as the jouz product was launched, it won the first place in Amazon’s best-selling list in Japan in 2018 and became one of the most popular e-cigarette brands among consumers. After entering South Korea for only half a year, jouz ranked the top three in the natural search index, and the sales market was often short of stock. In addition to the rising market in Japan and Korea, jouz is also popular in Russia, exported to more than 100 countries and regions such as Europe and the United States.
This time, jouz enters Korea’s No. 1 duty-free shop, providing a new sales channel for global users, which will surely set off a worldwide reselling boom. While providing more choices for domestic consumers in Korea, it will also lead to new business opportunities in the global electronic cigarette market.
Related: Jouz more information and its official site