Japan Tobacco International invests US$2.9 billion in heated tobacco to expand markets in the Middle East and Africa

Japan Tobacco International invests US$2.9 billion in heated tobacco to expand markets in the Middle East and Africa

Japan Tobacco International (JTI) plans to invest 450 billion yen (approximately US$2.9 billion) in 2026 to transform into heated tobacco to alleviate the shrinking pressure on the traditional paper cigarette market.
According to a report from the Nikkei Shimbun on May 2, Japan Tobacco International (JTI) announced that it will invest approximately 450 billion yen (approximately US$2.9 billion) in heated tobacco within three years from 2026. In addition, the company plans to enter the Middle East and African markets, and by 2026, its sales areas are expected to more than triple to 45 regions by the end of this year.

The company's CEO, Masamichi Terabatake, made it clear in an interview with Nikkei Business News that JTI hopes to develop heated tobacco into a new source of revenue amid the shrinking market for traditional paper cigarettes.

The company originally planned to invest 300 billion yen ($1.9 billion) in heated tobacco over the three years from 2023 to 2025. However, under the guidance of Masamichi Terahata, the company decided to increase investment and achieve its original goals ahead of schedule.