Japan-based air carriers reported a record 429 in-flight smoking incidents in 2025, the highest level since data collection began in 2004 and a sharp rise from 65 cases in 2019, according to the Ministry of Land, Infrastructure, Transport and Tourism. Authorities believe the growing use of heated tobacco products — now accounting for over 40% of domestic tobacco sales, per the Tobacco Institute of Japan — has contributed to the increase, as vapor can trigger aircraft smoke detectors. Smoking on board, including use of e-cigarettes and heated products, is prohibited under Japan’s Civil Aeronautics Act, with violators facing fines of up to ¥500,000 ($3,150) if they fail to comply with crew instructions.
Tag: Japan
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Japanese Consumers Facing Double Hit
The first phase of Japan’s tax increases on tobacco products and corporate income will take effect April 1, marking the first phase of a broader revenue plan to finance expanded defense spending, with additional increases planned for October and January 2027. Both conventional cigarettes and heated tobacco products will be affected, with the long-standing tax gap between the two categories set to narrow. The government aims to raise ¥1.3 trillion ($8.2 billion) in fiscal 2027 through staged hikes on tobacco, corporate, and personal income taxes to help fund a ¥43 trillion ($271 billion), five-year defense buildup that began in 2023.
In response to the new corporate taxes, Philip Morris Japan said it will raise prices by ¥40–¥50 (25 to 32 cents) per pack on 50 heated tobacco products from April 1, while Japan Tobacco plans ¥20–¥30 (13 to 19 cent) increases on 37 products. Manufacturers have not yet outlined pricing responses for October’s tax hike.
The Finance Ministry estimates tobacco tax revenue will increase by ¥44 billion ($277 million) in fiscal 2026, ¥116 billion in 2027 ($731 million), and ¥212 billion ($1.3 billion) annually thereafter as additional levies take effect. The measures come as Japan seeks to secure more than ¥9 trillion ($56.7 billion) in defense spending for fiscal 2026, reaching its 2% of GDP target ahead of schedule.
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PMJ Launches First IQOS Capsule
Philip Morris Japan launched its first capsule-equipped cigarette stick, the “Sentia Purple Capsule,” for the IQOS ILUMA heated tobacco series on March 2. Initially available at IQOS stores nationwide, the rollout at convenience stores and other tobacco retailers begins April 6, with the Nagoya IQOS store relocating on March 7.
The capsule product features blueberry-flavored capsules with invigorating menthol, allowing users to release a burst of menthol and blueberry aroma by crushing the capsule. The product’s purple color reflects the blueberry inspiration. This addition brings the SENTIA lineup to 18 brands, including regular, menthol, flavored, and capsule variants.
The price is 530 yen ($3.34) per 20-stick pack, rising to 570 yen ($3.59) from April 1. Daniel Sevsick, Philip Morris Japan’s portfolio marketing director, highlighted that this is SENTIA’s first menthol capsule product.
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Rejo Launches Cube in Japan
Rejo announced the global debut of Rejo Cube, which it describes as the world’s first modular heat-not-burn (HNB) device, launching in Japan on Feb. 16 through major e-commerce channels at a suggested retail price of JPY 6,980 ($45). The new device features a FlexiCube modular design with a magnetic heating pod and detachable battery available in three color options, allowing multiple combinations, along with a combined 2,250mAh battery capacity supporting up to 20 consecutive sticks per charge. Equipped with OmniHeat 360° heating technology for enhanced flavor delivery and a dual-mode system offering a standard 16-puff setting and a PlusEnjoy Eco Mode for extended use, the device also includes an interactive LCD display. The launch follows the introduction of Rejo Mate Air in Japan in 2025 and marks the company’s latest push to expand its presence in the HNB segment.
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Japan’s HTP Tax Changes Threaten JTI Growth: CFO
Tax changes in Japan that will eliminate preferential tax treatment for heated tobacco products are expected to weigh on growth this year, according to Japan Tobacco International CFO Vassilis Vovos. The policy shift would tax heated tobacco at the same rate as traditional cigarettes, potentially raising retail prices by 70 to 100 yen ($0.46 to $0.65) per pack after sales tax. Vovos said the company plans to introduce incremental price increases throughout 2026 to offset the impact and avoid a single steep price hike.
The tax change poses a challenge to JTI’s expansion of its Ploom heated tobacco device in Japan, the world’s largest heated tobacco market, which is currently led by rival Philip Morris International, according to Reuters. Parent company Japan Tobacco has relied on newer product categories to drive growth, with Ploom volumes rising more than 38% last year and reaching a 14.4% share of the heated tobacco segment. While executives warned the tax change could temporarily slow category growth, they said heated tobacco remains a key long-term revenue driver.
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Osaka Tightening Public Smoking Ban
Osaka, Japan, is weighing additional measures to curb illegal street smoking after a municipal survey revealed diverging views between smokers and nonsmokers following the citywide ban introduced in January 2025. According to the survey, nearly half of nonsmokers surveyed supported raising the current 1,000-yen ($65) fine and strengthening patrols and public awareness, while about 60% of smokers called for more designated smoking areas. In response, the city plans to add 65 new smoking zones on top of the 195 already in place, increase enforcement staff beyond the current 85 officers and assistants, and focus resources on high-incidence areas, especially those in entertainment districts. Osaka reported a 40% year-on-year decline in street smoking, as it continues efforts to balance compliance with public comfort ahead of the Osaka Kansai Expo.
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Japan Makes First ‘Zombie Cigarette’ Bust
A 31-year-old Thai woman was arrested in Japan for allegedly smuggling etomidate—commonly referred to as “zombie cigarettes”—into the country via Kansai International Airport, marking the first etomidate-related enforcement case at the airport since the drug was added to Japan’s controlled substances list in May last year. Osaka Customs said the suspect allegedly brought 1,002 cartridges containing about 500 grams of etomidate from Thailand in November, concealing them inside seven snack packets in her suitcase. She was traveling with a Malaysian man who was also arrested and indicted on separate charges for allegedly smuggling stimulants into Japan.
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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.
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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.
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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.