BONDS by IQOS marks the first major heated tobacco platform outside the IQOS ILUMA family, giving the brand a second proprietary heated tobacco ecosystem in Japan. Photo credit: IQPS Italy
Philip Morris International (PMI) and British American Tobacco (BAT) recently unveiled new additions to their heated tobacco portfolios in Japan, highlighting the next phase of competition in the world's most advanced heated tobacco market.
Rather than relying on a single flagship product, manufacturers are increasingly seeking growth by expanding proprietary heated tobacco platforms. PMI's launch of the new BONDS by IQOS system and BAT's continued investment in the glo Hilo portfolio show how competition now extends beyond device launches to the broader ecosystems built around them.
PMI introduced BONDS by IQOS as its first major heated tobacco platform outside the IQOS ILUMA family. Unlike ILUMA, which uses SMARTCORE induction heating with TEREA sticks, BONDS employs the company's RoundHeat Tobacco System with dedicated BLENDS tobacco sticks, giving PMI a second proprietary heated tobacco ecosystem in Japan.
BAT has focused on expanding its existing platform. The company recently added VIRTO Bright Peach Click, a capsule-based tobacco consumable developed exclusively for the glo Hilo system. Rather than introducing another device, BAT has broadened the Hilo consumables portfolio, giving existing users more product choices while reinforcing the platform's long-term appeal.
The latest launches reflect a broader evolution in Japan's heated tobacco market. During the category's early years, manufacturers competed primarily through hardware innovation, introducing devices with faster heating, improved battery performance and more sophisticated designs. As those technologies have matured, the competitive focus has shifted toward expanding product ecosystems through differentiated consumables and platform-specific offerings.
That strategy offers several commercial advantages. Proprietary consumables generate recurring revenue throughout a device's lifecycle, while exclusive compatibility encourages consumer retention within a single platform. Manufacturers can also refresh their portfolios more frequently through new tobacco blends, flavor capsules, and product variants than through entirely new device launches.
Japan provides an ideal proving ground for this approach. Heated tobacco products account for a substantial share of the country's tobacco market, and millions of adult consumers already use platform-specific devices. Rather than driving first-time adoption, manufacturers increasingly compete to increase usage within existing ecosystems by broadening their consumables portfolios and targeting different consumer preferences and price segments.
The emergence of multiple proprietary ecosystems also signals a more mature market. Instead of concentrating investment on a single premium platform, companies are building complementary product families that address different consumer needs while creating additional opportunities for repeat purchases.