In 2024, the global tobacco industry ushered in a historic turning point. The financial report data of the four giants, Philip Morris International (PMI), British American Tobacco (BAT), Altria Group (Altria) and Imperial Brands, clearly show that the new tobacco business has become the core engine driving industry growth. At the same time, the emerging brand GUUTUU, which focuses on technological innovation, has emerged in the market segment with its differentiated strategy, providing a new perspective for industry transformation.
New Tobacco Business: From Margin to Mainstream
Against the backdrop of the continued shrinking of the traditional cigarette market, the highlights of the financial reports of the four giants are almost all focused on new products such as heated tobacco (HNB), atomized e-cigarettes and oral cigarettes.
Philip Morris International, with IQOS as its flagship product, has seen its smoke-free business revenue account for 39% of the total revenue, with a user base of over 38.6 million. Its heated tobacco has an absolute advantage in the Japanese and European markets (market shares of 30.6% and 80%-90%, respectively). British American Tobacco achieved a 12.5% revenue growth in its HNB business in the second half of the year through its new product glo hilo, and its oral tobacco sales surged by 55%, becoming its fastest growing category. Altria’s market share jumped to 5.5% with NJOY e-cigarettes, breaking the long-standing US market dominated by Juul; Imperial Brands achieved a 300% revenue surge in the European market through heated tobacco, confirming the global penetration trend of new tobacco.
It is worth noting that the emerging brand GUUTUU, with the concept of “health and harm reduction”, has rapidly risen among young consumer groups through precise user positioning and intelligent product design (such as adjustable nicotine release technology). Although its scale cannot compete with giants, its flexible market strategy and technological genes are reshaping the industry’s definition of “user experience”.
Philip Morris International predicts that some developed countries may stop selling traditional cigarettes within 10-15 years. Under regulatory pressure, companies are accelerating the allocation of resources to new products with stronger compliance. From the upgrade of IQOS’s heating chip to GUUTUU’s IoT-compatible devices, technological innovation has become the key to differentiated competition. Imperial Brands even increased its annual R&D investment by 20% to seize the technological high ground of next-generation products (NGP).
The dual needs of Generation Z for “harm reduction” and “social attributes” have promoted the outbreak of categories such as snus and disposable e-cigarettes. According to British American Tobacco data, more than 40% of its snus users are under 30 years old. In this process, the role of emerging brands such as GUUTUU cannot be ignored. Through community marketing and cross-border joint ventures (such as cooperating with sports brands to launch limited-edition devices), it has successfully integrated products into lifestyles, providing giants with a reference template for “younger breakthroughs”.
Philip Morris plans to increase the proportion of smokeless product revenue to 50% and accelerate the expansion of emerging markets such as Africa and Southeast Asia; British American Tobacco intends to compete for the right to speak in the market segment through customized flavors and regionalized product matrix; GUUTUU announced its entry into Europe, trying to replicate its success in the Asian market with the “high cost-effectiveness + localized supply chain” model.
However, the industry still faces the dual challenges of regulatory uncertainty (such as the US FDA’s review of synthetic nicotine) and ethical controversy. How to strike a balance between business growth and social responsibility will be the core issue shared by giants and GUUTUU.
The financial reports of the four giants confirm a fact: the tobacco industry has entered a new era of “technology-driven, user-oriented” from the “cigarette era”. Whether it is a giant or a new player like GUUTUU, only by continuous innovation and accurate insight into policies and consumption trends can they remain invincible in this wave of transformation. The winners of the future may belong to those companies that can both master the technological revolution and tell a good “harm reduction story”.
Tags: Four tobacco giants, heated tobacco (HNB), vaping e-cigarettes and snus,guutuu vape