Tag: Japan

  • BAT to Raise Prices of Heated Tobacco Sticks in Japan

    BAT to Raise Prices of Heated Tobacco Sticks in Japan

    BAT announced that it will increase the retail selling prices (RSPs) of its Lucky Strike and Kent heated tobacco sticks in Japan by ¥20 ($0.13) beginning January 1, citing higher manufacturing costs rather than tax-related reasons. Designed exclusively for use with the glo Hyper series, the adjustments will apply to 11 Lucky Strike and five Kent variants, setting new prices at ¥450 and ¥500 ($2.97 and $3.30), respectively.

    Prices for BAT’s other heated tobacco lines — Neo and Virto, for exclusive use with the glo Hilo series — will remain unchanged at ¥500 and ¥580 ($3.83). The company says that even after the increase, Lucky Strike will continue to be the lowest-priced tobacco stick among the three major heated tobacco platforms in Japan: IQOS, glo, and Ploom.

    The upcoming change follows a series of price revisions in recent years. Lucky Strike, originally launched at ¥450, was reduced to ¥400 ($2.64) in October 2023 and restored to ¥450 in April 2024. Kent, initially ¥500, dropped to ¥450 in August 2023 before rising to ¥480 ($3.17) in October 2024. Analysts suggest that the latest increase reflects BAT’s renewed confidence in its market position, emphasizing product innovation and the success of the glo Hilo series and Virto sticks, rather than relying on price competition.

  • PM Japan Announces Two New Launches

    PM Japan Announces Two New Launches

    Philip Morris Japan (PMJ) announced it will launch the IQOS ILUMA i Galaxy Blue Model on October 29, a limited-edition device inspired by the “mysteries and infinite possibilities of the universe.” The ¥6,980 ($46) model features a deep-space blue charger with a starry gradient design. PMJ’s marketing director, Daniel Sevsik, said the edition was created to reinforce IQOS ILUMA i’s image of “innovation and future possibilities.”

    The company will also release its TEREA Clear Regular on October 27, a “smooth and balanced tobacco stick” for the IQOS ILUMA and ILUMA i series. Sevsik said the regular flavor segment has growth potential, as users tend to be more stable than menthol and flavored product consumers. The new variant becomes the sixth regular option in the TEREA lineup.

  • Tourists at Heart of Japan’s Cigarette Butt Problem

    Tourists at Heart of Japan’s Cigarette Butt Problem

    A new survey found cigarette butt litter around Osaka, Japan’s Namba Station to be four times higher than at Tokyo Station, highlighting challenges in enforcing the city’s street smoking ban among tourists. The survey, commissioned by the Osaka Prefecture food service industry sanitation association, revealed Namba as the worst offender among six locations nationwide. While street smoking has been banned citywide since January, limited designated smoking areas and confusion among visitors have contributed to widespread littering.

    Namba, home to popular tourist spots like Dotonbori, attracts many international visitors from countries where outdoor smoking is still permitted. Communicating Japan’s local rules to these travelers remains a hurdle, according to the officials.

  • CAPHRA Wants WHO to Embrace Consumer Voices

    CAPHRA Wants WHO to Embrace Consumer Voices

    The Coalition of Asia Pacific Tobacco Harm Reduction Advocates (CAPHRA) demanded the World Health Organization’s Framework Convention on Tobacco Control (WHO FCTC) end its exclusion of consumer organizations and adopt evidence-based tobacco harm reduction (THR) as a vital public health strategy ahead of its COP11 meeting.

    CAPHRA called on COP11 delegates to grant formal observer status to consumer groups, adopt risk-proportionate regulations distinguishing safer products from cigarettes, and subject WHO FCTC policies to United Nations human rights oversight.

    “The WHO must evolve. Consumer advocates are not the enemy—they’re the bridge to pragmatic solutions and essential partners in reducing smoking-related harm,” said Nancy Loucas, CAPHRA Executive Coordinator. “COP11 must prioritize transparency and science over ideology. Lives hang in the balance.”

    CAPHRA pointed to New Zealand’s progressive vaping policies that have helped the adult smoking rate drop below 6% in 2024 and Japan’s adoption of heated tobacco products have also driven smoking rates to record lows. Conversely, Australia’s prohibitionist approach has fueled a thriving black market for unregulated vaping products, exposing consumers to greater risks.

    “The WHO’s refusal to engage with consumer groups—those most directly affected by its policies—undermines global public health,” said Loucas. “By silencing consumer voices and dismissing safer alternatives, they prioritize ideology over science, costing lives.”

  • PMI Accused of ‘Manipulating Science’

    PMI Accused of ‘Manipulating Science’

    Image: Xistudio

    Philip Morris International has been accused of “manipulating science for profit” through funding research and advocacy work with scientists, according to The Guardian.

    Leaked documents from PMI and its Japanese affiliate revealed plans to target politicians, doctors and the 2020 Tokyo Olympics as part of the company’s marketing strategy to attract nonsmokers to its IQOS heated-tobacco product. Japan is a launch market for IQOS.

    A Tobacco Control Research Group paper from the University of Bath stated that Philip Morris Japan (PMJ) funded a Kyoto University study into smoking cessation via a third-party organization. The researchers found no public record of PMJ’s involvement, however. According to a PMI spokesperson, the company’s involvement was attributed when the results were presented at a scientific conference in Greece in 2021.

    PMJ reportedly paid £20,000 ($25,287.48) a month to FTI-Innovations, which is a life sciences consultancy run by a professor from Tokyo University. The payments were for tasks like promoting PMI’s science and products at academic events, which, according to an internal email, a PMJ employee claimed they had been told “to keep it a secret.”

    The paper, which was published in Nicotine & Tobacco Research, is based on 24 leaked company documents from between 2012 and 2020.

    “These activities resemble known strategies to influence the conduct, publication and reach of science and conceal scientific activities,” the researchers said.

    “The manipulation of science for profit harms us all, especially policymakers and consumers trying to make potentially life-changing decisions,” said Sophie Braznell, one of the paper’s authors. “It slows down and undermines public health policies while encouraging the widespread use of harmful products.”

    The leaked documents undermined PMI’s claims to conduct “transparent science,” according to Braznell, who called for reforms to funding and governance of tobacco research “to protect science from vested corporate interests.”

    In a different report from Stopping Tobacco Organizations and Products (STOP), also based on leaked documents, PMJ appeared to lobby for IQOS to be permitted in places where smoking was banned.

    Entities like medical and hospitality groups and Japan’s Fire and Disaster Management Agency were targeted for endorsements, “which, if secured, could give the appearance of organic, widespread acceptance of IQOS,” said STOP.

    Moreover, the report stated that aiming for a presence at the Tokyo Olympics “echoes a known industry tactic of advertising addictive, harmful tobacco products at sports events—associating these products with health, misleading consumers and reaching children and young people.”

    “PMI’s intentions with IQOS seem to extend far beyond what they’ve stated,” said Jorge Alday, director of STOP. “This revelation adds weight to the mounting evidence questioning the credibility of PMI’s claims about their intentions and their products.

    “Disturbingly, it hints at a broader pattern of deceptive tactics, potentially laying the groundwork for a new chapter in the tobacco epidemic,” he said.

    “This is yet another specious story from an organization more interested in criticizing our company than helping reduce the harm from cigarettes,” said a PMI spokesperson. “Like any highly regulated multinational company, PMI regularly seeks to share our positions on issues that affect our consumers, our company and our communities. Not only is this type of engagement entirely legal and appropriate, [but] it is essential to the type of inclusive policymaking that will lead to better outcomes for the people affected by those policies.”

  • Losing Steam

    Losing Steam

    Photo: Ned Snowman

    Heated-tobacco products continue to eat into the sales of combustible cigarettes in Japan, albeit at a slower pace than before.

    By Stefanie Rossel

    This year marks the 10th anniversary of IQOS’ debut in Japan. Within a decade, Philip Morris International’s heated-tobacco product (HTP) has changed the country’s tobacco market beyond recognition. HTPs accounted for 37.9 percent of all tobacco sales in Japan last year. In January 2023, HTP sales for the first time overtook cigarette sales in Tokyo, accounting for 50.4 percent of consumer takeoff, according to PMI figures presented at the CAGNY conference in February 2024.

    Perhaps the only tobacco market to have experienced a similarly seismic shift among product categories is Sweden, where the popularity of snus has altered consumption patterns to such an extent that its smoking rate will likely fall below 5 percent at some point this year. In both countries, smoking rates declined not as a result of anti-tobacco policies but due to consumers spontaneously opting for safer alternatives when presented with such options.

    Until the advent of the new category, Japan was long considered a smokers’ paradise, and it still is one of the world’s largest tobacco markets, with more than 17 million Japanese smoking regularly. Japan’s ministry of finance still owns 30 percent of Japan Tobacco, the successor to the country’s tobacco monopoly, thus benefiting from high tax revenues.

    For decades, the industry was able to flourish in a relatively unrestricted market. Low prices and moderate regulations facilitated consumption, with smoking incidence peaking at close to 50 percent of the population in the 1960s. Smoking, mostly a male habit in Japan, started declining slowly after the introduction of a series of anti-smoking regulations. More measures took effect when Japan hosted the 2020 Olympic Games and faced external pressure to crack down on the habit. Extensive public smoking bans contributed to a drop in smoking prevalence from 28 percent in 2002 to 16.2 percent in 2022, according to the Foundation for a Smoke-Free World. But while cigarette sales decreased at a leisurely annual rate of 1.8 percent between 2011 and 2015, they started dropping much faster after the arrival of HTPs.

    Japan is an ideal place to study the impact of HTPs. The country prohibits the sale of nicotine-containing e-cigarettes, which are classified as pharmaceutical products and can be purchased only with a prescription in medically licensed shops whereas non-nicotine vape products are freely available. In addition, Japanese consumers are health-conscious, tech-savvy and receptive to new gadgets. Values such as discretion and politeness are deeply rooted in Japanese culture, meaning that smokers in the densely populated country are keen to avoid bothering others, for example, through secondhand smoke.

    Heated-tobacco products continue to enjoy a tax advantage over combyustible cigarettes in Japan, but this may change in the future. (Photo: Taco Tuinstra)

    A Mature Market

    Ten years into the introduction of the category, however, fascination appears to have worn off a little, with HTP sales plateauing during the past few years. According to Euromonitor International, the retail value generated by HTPs in Japan fell from $11.14 billion in 2022 to an estimated $11.13 billion in 2023 and will reach $11.23 billion this year. Japan nevertheless remains by far the leading market of the category, representing almost a third of the expected global retail volume of $40.59 billion this year, well ahead of Italy, which now ranks second with an estimated HTP market value of $6.511 billion in 2024.

    IQOS continues to dominate the Japanese HTP market with a share of 70.5 percent in 2023, according to PMI. A survey commissioned by Statista revealed that IQOS Iluma was the most popular HTP in Japan between July 2023 and August 2023, with more than 21.1 percent of respondents using the product. IQOS Iluma One was the second most popular heating product, with a share of 20.7 percent of respondents. It was followed by JT’s Ploom X with 19.4 percent and British American Tobacco’s Glo Hyper+ with 12.9 percent.

    The maturity of Japan’s HTP market has sparked a fierce battle for market share among the leading manufacturers. Price competition is increasing, and consumers are experimenting with other brands and devices while manufacturers are subsidizing products and launching new models.

    In October, BAT lowered the prices of six Lucky Strike consumable variants for its Glo Hyper device after it had already cut the prices of 19 of its Glo Hyper products by ¥40 ($0.25) to ¥50 on Aug. 1, 2023, in an attempt to boost its market share. A pack of 20 Lucky Strike heat sticks now retails at ¥400.

    Tax Differential in Danger

    Japan also saw a series of new HTP launches in the past year, all focusing on improved performance and enhanced flavor delivery. In July 2023, JT introduced With 2, an infused tobacco vapor device under its respective new brand With. The product features JT’s infused technology, which generates vapor while an atomized liquid passes through a capsule containing granulated tobacco, and has been available at convenience stores and tobacco stores in Japan since September.

    According to the company, there is no delay in nicotine delivery, as tobacco vapor is generated the moment it’s inhaled, and there is almost no tobacco smoke with the product since tobacco leaves are not directly heated. Following the launch, JT discontinued its Ploom Tech, Ploom Tech+ and Ploom Tech+ With devices for infused tobacco capsules. The recommended retail price for the With 2 device is ¥1,980, including tax, while a pack of the respective tobacco capsules under the Mevius brand retails at ¥580.

    In November 2023, JT started selling Ploom X Advanced in Japan. The device, which replaces the Ploom X model, comes with an upgraded heating system. Named “Power Heatflow,” this technology increases the maximum heating temperature from 295 degrees Celsius to 320 degrees Celsius to provide a richer flavor experience. Charging time is reduced from 110 minutes for the previous model to around 90 minutes. The device is sold at a suggested tax-included retail price of ¥1,980.

    In January, BAT presented the most recent version of its Glo heating device, Glo Hyper Pro, in Japan. Charging takes about 90 minutes, allowing for use for 20 sessions. This compares to 210 minutes for Hyper X2, 120 minutes for Hyper Air and 135 minutes for IQOS Iluma, according to BAT. The Glo Hyper Pro also features a new screen displaying performance settings and information as well as a new “HeatBoost” technology for better taste. At ¥3,980, the device sells in the same price category as IQOS Iluma, which retails at ¥3,980 to ¥9,980, depending on the discount, but is more expensive than the now discontinued Ploom X, which could be purchased for as little as ¥980 after discount.

    To mark the 10th anniversary of IQOS’ introduction in Nagoya, PMI in March 2024 chose Japan for the launch of its Iluma i-series, the next generation of Iluma devices, which comes with a series of new features, such as a touch-screen that allows users to view the relevant information easily, and a pause mode that enables users to stop and resume their use and thus reduce waste. The device is adaptive to use patterns, and the holder’s battery has a longer life span, according to PMI. Retail prices range between ¥3,980 for Iluma One i and ¥9,980 for the premium model, Iluma Prime i.

    Intensive competition has caused IQOS devices to be significantly less expensive in Japan than in other markets.

    As manufacturers fight for market share, they may lose another advantage. One factor that helped HTPs gain ground in Japan was their favorable taxation. When the products debuted in this market, they were taxed at between 10 percent and 70 percent of the combustible cigarette rates due to their small amount of tobacco.

    Takes hikes between 2018 and 2022 raised those levels to between 70 percent and 90 percent. Seeking to boost its defense spending, the Japanese government in late 2022 proposed to gradually raise HTP taxes until they reach the level of cigarettes in 2027. According to The Mainichi newspaper, the government had not made a decision on the tax hikes by early 2024. If it decides to move forward, however, the measure will likely further decelerate the growth of Japan’s HTP market.

  • New Briefing Details THR Success in Japan

    New Briefing Details THR Success in Japan

    Photo: wachiwit

    Knowledge Action Change (KAC) has released a briefing paper on the rapid fall in cigarette sales in Japan following the introduction of heated-tobacco products (HTP).

    Titled “Cigarette Sales Halved: Heated-Tobacco Products and the Japanese Experience,” the paper explores some of the social and cultural factors that have made Japan particularly suited to HTP and provides a case study showcasing the potential of tobacco harm reduction through the adoption of safer nicotine products.

    As well as referencing a number of peer-reviewed science papers, the briefing paper, available in 12 languages, also includes some new Global State of Tobacco Harm Reduction research, which compares up-to-date sales figures that emphasize the changing nature of cigarette and HTP consumption.

    According to KAC, the success of HTP in Japan offers significant hope of their potential to reduce cigarette sales in other similar countries.

    “The speed and scale of the change in Japan shows just how quickly things can improve when those people already consuming nicotine are given access to a safer alternative,” said KAC Director David MacKintosh in a statement.

    “This is not the result of a specific government policy or initiative, yet the benefits to individuals and society are significant. There are lessons to be learnt from Japan by all those who wish to see the use of combustible tobacco consigned to the history books. Harm reduction is about giving people the opportunity to improve their own health and the health of those around them. Given the chance, most people will do just that.”

  • Japan Mulls Equal Taxes for Cigarettes and THPs

    Japan Mulls Equal Taxes for Cigarettes and THPs

    Image: Ned Snowman

    Japan’s government presented a proposal to the executive committee of the Liberal Democratic Party’s Taxation Research Committee to raise taxes on heated-tobacco products, bringing them to the same level as cigarettes, reports Yomiuri. The increased taxes are to be used to help strengthen defense capabilities. The proposal will be included in the ruling party’s tax reform outline expected to be compiled within the week.

    Taxes on heated-tobacco products are currently about 30 percent lower than the taxes on combustible cigarettes. Some members of the Liberal Democratic Party as well as cigarette manufacturers have argued that the tax rate difference should remain the same because “heated-tobacco products are less harmful to health.”

    The Cabinet approved a tax reform outline last year that stipulates the tobacco tax will increase by “the equivalent of ¥3 ($0.02) per cigarette” as part of the defense tax increase. A tax revenue increase of about ¥200 billion in expected.

    “After consulting with Prime Minister Kishida, we have decided not to make a decision this year,” said Yoichi Miyazawa, chairman of the Liberal Democratic Party’s tax committee, regarding the start of the defense tax increase.

  • JT Launches Ploom X Advanced in Japan

    JT Launches Ploom X Advanced in Japan

    Image: JT

    Japan Tobacco announced the launch Ploom X Advanced, a new model of heated tobacco device that has evolved in terms of taste and user comfort.

    The company believes the new device will play a significant role in its mid- to long-term business strategy.

    According to JT, the new device represents a significant improvement over the current model and incorporates advanced features, including:

    • An upgraded heating technology, dubbed “Power Heatflow,” which increases the maximum heating temperature from 295 degrees Celsius to 320 degrees Celsius to provide a richer flavor experience.
    • A new automatic heating function that automatically starts heating when a stick is inserted into the device.
    • Reduced charging time from approximately 110 minutes for the current model to approximately 90 minutes.

    The device will be available at convenience stores and tobacco retailers nationwide in Japan starting on Nov. 21, 2023, at a suggested, tax-included retail price of ¥1,980 ($13.22).

    Following the launch of Ploom X Advanced, JT will discontinue sales of the current Ploom X model in Japan.

  • JT Launches ‘With 2’

    JT Launches ‘With 2’

    Image: Japan Tobacco

    Japan Tobacco has launched With 2, its new infused tobacco vapor device, under the company’s respective new brand, With. It will be sold at convenience stores and tobacco stores in Japan beginning Sept. 5, 2023, and will be available for presale online from Aug. 7, 2023.

    With 2 is the first device of the new infused tobacco brand With. It features JT’s unique infused technology, which generates vapor while an atomized liquid passes through a capsule containing granulated tobacco.

    Since tobacco vapor is generated the moment it’s inhaled, there is no delay in delivery, JT explained in a press note. There is almost no tobacco smoke smell with the product since tobacco leaves are not directly heated. The device is equipped with a dual mode that allows consumers to switch between two heating modes at the touch of a button. The high mode produces 1.3 times more vapor than the normal mode, delivering a more intense flavor experience, according to JT.