Japan Tobacco Group, the parent company of Japan Tobacco International (JTI), announced that it will be investing 450 billion yen (USD $3 billion) on reduced-risk products (RRPs) by the end of 2026. The parent company is based in Tokyo and invests in various fields including pharmaceuticals and foods, while JTI is based in Switzerland.
“One of our ambitions is to recoup by 2028 our investments in RRPs and reach profitability,” said Kazuhito Sumimoto, JT investor and media relations vice president, who noted the investment covers capital expenditures, sales promotions, and research and development.
This investment stands on the shoulders of JTI’s 2021 launch of Ploom X—the latest generation of its heated tobacco product line designed to meet the changing needs of smokers.
“The geo-expansion of Ploom, our investment priority, has now reached 23 markets, and in Japan, the largest Ploom market, we continued to gain share in this segment, reaching 11.8 percent quarter-to-date,” said Masamichi Terabatake, JT Group’s president and chief executive officer, who added that Ploom’s overall sales grew 40% in the third quarter of 2024
JT investor and media relations director Ichiro Kawai said the company expects combustibles to decline 2% by 2035, but heated tobacco products to rise by 8%.
It took two years for Ploom X to expand to 12 markets outside of Japan, including being introduced in the Philippines in November 2024. Its success in the Philippines gives JTI momentum and confidence that it can reach its goal of being in 40 global markets by 2026.
