JAPAN
Japan Tobacco Inc. (JTI) announced its plans to launch a new heat-not-burn (HNB) product in Japan as early as the end of this year.
The company said it would spend more than JPY100 billion (US$917.43 million) over the next three years on development and production of “reduced-risk products (RRP),” or cigarette alternatives that do not use combustion to deliver nicotine.
At an earnings briefing, JTI c.e.o., Masamichi Terabatake, said, “For Japan Tobacco’s continuous growth, we must win in the RRP category.”
Hiroshi Saji, an analyst at Mizuho Securities, estimated that HNB products will account for 29% of Japan’s tobacco market this year, up from 16%in 2017.