KT&G plans to launch new heated tobacco products in 2025
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KT&G plans to launch new heated tobacco products in 2025
Korea Tobacco plans to launch new heated tobacco (HTP) products in 2025 to maintain its leading position in the heated tobacco market and cope with increasingly fierce market competition.
According to N.News on December 30, Korea Tobacco (hereinafter referred to as "KT&G") plans to launch new heated tobacco (HTP) products in 2025.
According to tobacco industry sources, KT&G is currently preparing to launch new HTP products in 2025. A spokesperson for KT&G revealed that "cartridge products are released irregularly, but the equipment is usually updated every one to two years." KT&G had disclosed the launch plan of new products at the third quarter earnings conference in November last year.
Despite this, KT&G did not specify whether the new product is a brand new device or an upgrade of one of the three existing devices. The three devices currently sold by KT&G in the Korean market include "Lil Hybrid 3.0", "Lil Able 2.0" and "Lil Solid 3.0". The most recent new product launch was in September 2024, when the "Lil Solid 3.0" was launched, an upgraded version of the "Lil Solid 2.0" released in 2020.
KT&G is also adjusting the inventory of existing products for the launch of new products next year. In a conference call in November, KT&G explained that the stagnation of sales growth of cartridge products in the third quarter was due to "the impact of inventory adjustments for the launch of new products next year."
KT&G emphasized that "once the new products are launched, sales are expected to return to normal and may bring additional growth."
An industry insider analyzed that KT&G has secured first place in the heated tobacco market through new product plans. According to data from a convenience store, KT&G accounted for 48% of the market share in heated tobacco sales last year, a slight increase from 46% in the previous year, ranking first, followed by Philip Morris International (PMI) with 41%, and British American Tobacco (BAT) with 11%. Although KT&G remains in first place, the gap with PMI is not large. At the same time, Japan Tobacco International Korea (JTI Korea) has also joined the heated tobacco market, making the market competition more intense.
