Before trying out Yun Xi tobacco heating device, I was not a person who likes to smoke. Because when I used traditional cigarettes, I often choked on the cigarette smoke. But I’ve never experienced the same thing when I switched to Yun Xi device. It’s said this kind of product is much less harmful.

One of my friends was quitting smoking out of some reason, so I bought him iSMOD II as a quit-smoking aid. A week later, this heavy smoker who has smoked for nearly 20 years magically switched from traditional cigarettes to heatde tobacco e-cigarette device. And three months later, my friend told me he had stopped coughing in the middle of the night.

Compared to e-cigarettes, the market for heatde tobacco devices is relatively small, but it has also been found that the market is developing rapidly, which has attracted many companies of other industries investing in products of this kind. At the same time, the tobacco industry is gradually shifting their focus from traditional cigarettes to next generation products.

From the perspective of the whole tobacco industry, we can find that a lot of companies in this field have profited a lot as the competition is not as strong as that in other industries while the profit margin is considerable.

Regarding tobacco control, the goal of the World Health Organization is to reduce the global smoking rate by another 2.5 percentage points in the next decade. In fact, in the past 15 years, the global smoking rate has dropped significantly from 29.4% in 1990 to 15.3% in 2015. A large part of these smokers have switched to electronic cigarettes and tobacco heating products.

As a substitute for traditional cigarettes,heatde tobacco products give investors unlimitedly optimistic expectations. So far, 60% to 75% of smokers have purchased e-cigarettes and heated tobacco products in Japan. The future tobacco market is likely to be what PMI expects: the traditional tobacco will be replaced by heatde tobacco e-cigarettes.

In terms of heatde tobacco products, GLO is the benchmark and leads the trend. Philip Morris International has a first-mover advantage, and the overall market is still in the growing stage. It’s quite a right timing for other companies to set their foot in this field as the competition is not strong yet.

As a product used with high-frequency, tobacco heating device has a great potential to be explored. Both the supply-side market and the demand-side market need more participants to help with better development.