Tobacco in 2024: The big picture
The shift from cigarettes and cigarillos to heated tobacco continued in Japan in 2024. The perception that heated tobacco is less harmful than combustible products, combined with its low odour, is encouraging more local consumers to make the switch.
2024 key trends
In 2024, Japan saw its 12th consecutive year of declining cigarette sales. Despite holding over half of the tobacco industry's value, factors like population decline, health awareness, and smoking regulations are reducing cigarette consumption. The decline in 2024 was less severe compared to 2018-2021, mainly due to the absence of tax hikes during this period. Additionally, the 2021 tax increase on cigarillos made their prices similar to cigarettes, prompting some consumers to return to cigarettes.
Competitive landscape
Japan Tobacco Inc was the leading company in tobacco in 2024. Its leading position was secured by a strong presence in cigarettes, the largest category overall. Camel Craft, the company’s low-priced variant of the Camel brand, has become one of the leading options for those transitioning from cigarillos to economy cigarettes since its introduction in 2022. Nevertheless, the declining popularity of cigarettes led to a concomitant decline in share for the company, as cigarettes and cigarillos account for more than 80% of its portfolio in volume terms.
Retail developments
With many outlets operating 24 hours a day, convenience stores remains the primary distribution channel for cigarettes and heated tobacco products. In 2024, Japan had more than 60,000 of these outlets, ranking second only to China. While extensive distribution is a significant advantage for this channel, the shortage of a labour force presents a considerable challenge and self-checkout machines are increasingly being introduced. Lawson, the third-largest chain of convenience stores in Japan with over 14,000 locations, has implemented self-checkout machines across all its outlets. Similarly, 7-Eleven, the largest convenience store chain with over 21,000 stores, plans to install one or more self-checkout machines at all its locations.
What next for tobacco?
Although cigarettes, currently the largest category in tobacco, is projected to register a consistent decline in retail volume sales due to an ageing population, rising health concerns, and reduced smoking opportunities, heated tobacco is anticipated to exhibit growth in both retail volume and current value terms. This is because these products are low-odour and perceived as less harmful compared to combustibles such as cigarettes and cigarillos.
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Overview:
Understand the latest market trends and future growth opportunities for the Tobacco industry in Japan with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
Data and analysis in this report provides further detailed coverage dedicated to the following key categories, where applicable:
- Cigarettes
- Cigars, Cigarillos and Smoking Tobacco
- Smokeless Tobacco, E-Vapour Products and Heated Tobacco
If you're in the Tobacco industry in Japan, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
The Tobacco in Japan report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volume and value sizes, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent research methodology, conducted in-country
This report answers:
- What is the market size of Tobacco in Japan?
- Which are the leading brands in Tobacco in Japan?
- How are products distributed in Tobacco in Japan?
- Which category is the most heavily taxed in Japan?
- How is the operating environment for Tobacco changing?
- What are the current legislative restrictions applicable to the sale of Tobacco products in Japan?
- How has COVID-19 impacted demand?
- How have national lockdown and enforced home seclusion following COVID-19 impacted sales?
- Where is future growth expected to be most dynamic?
Tobacco in Japan
Tobacco in 2024: The big picture
2024 key trends
Competitive landscape
Retail developments
What next for tobacco?
Legislation
Legislative overview
Minimum legal smoking age.
Smoking prevalence
Tar levels
Health warnings
Plain packaging
Advertising and sponsorship
Point-of-sale display bans
Smoking in public places
Low ignition propensity (LIP) cigarette regulation
Flavoured tobacco product ban
Reduced harm
Vapour products
PRODUCTION/IMPORTS/EXPORTS
DISCLAIMER
Cigarettes in Japan
KEY DATA FINDINGS
Cigarettes continues to register decline in 2024 due to a range of factors
Japan Tobacco gains share with its economy-priced products
Convenience stores remains the leading distribution channel for cigarettes in 2024
Ageing population, rising health concerns, and expected tax increases will negatively affect cigarettes in the coming years
Decline in smoking areas will further constrain cigarettes in the years ahead
Economy-priced cigarettes expected to see further share increase as consumers become increasingly price-conscious
Taxation rates
Average cigarette pack price breakdown
Cigars, Cigarillos and Smoking Tobacco in Japan
KEY DATA FINDINGS
Ongoing decline for cigarillos, but fine cut tobacco continues to post positive performance
British American Tobacco Japan Ltd leads cigars and cigarillos, while Intercontinental Trading Corp leads smoking tobacco
Convenience stores remains the leading channel of sales of cigars and cigarillos, while food/drink/tobacco specialists leads smoking tobacco
Fine cut tobacco will continue to attract price-conscious consumers amid surging inflation
Smoking tobacco set to enjoy steady growth in the coming years
Shisha bars will continue to appeal to younger demographics, offering scope for growth
Smokeless Tobacco, E-Vapour Products and Heated Tobacco in Japan
KEY DATA FINDINGS
Heated tobacco continues to record strong growth in 2024
Philip Morris Japan KK leads overall category sales in 2024, thanks to its performance in heated tobacco
Convenience stores leads sales of heated tobacco, while food/drink/tobacco specialists leads smokeless tobacco
Heated tobacco will see ongoing growth thanks to a healthier profile than cigarettes
E-vapour products will remain niche due to the regulation of nicotine
Swedish-style style snus has potential as an alternative to traditional tobacco products
The following categories and subcategories are included:
Tobacco
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- Fine Cut Cigarettes
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- Cigarettes (Illicit+Legal)
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- Cigars
- Cigarillos
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- Pipe Tobacco
- Fine Cut Tobacco
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- Chewing Tobacco
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- Loose US-Style Moist Snuff
- Portion US-Style Moist Snuff
- Swedish-Style Snus
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- Closed System Single Use
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- Closed System Rechargeable (including starter kits)
- Closed System Cartridges
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- Open Vaping Systems Charging and Vapourising Devices
- E-liquids
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- Tobacco Heating Devices
- Heated Tobacco
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- Nicotine Pouches
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- Closed System Single Use (Illicit+Legal)
- Closed System Cartridges (Illicit+Legal)
- E-Liquids (Illicit+Legal)
Tobacco
Passport Tobacco covers the seven major tobacco categories: Cigarettes, Cigars & Cigarillos, Smoking tobacco (made up of Pipe tobacco and RYO tobacco), Smokeless Tobacco (snuff and chewing tobacco), E-Vapour Products (closed and open); Heated Tobacco; and Tobacco Free Oral Nicotine. Smoking paraphernalia such as pipes, rolling papers, lighters or matches, etc., are not included, nor are nicotine replacement therapy (NRT) products, which are part of Euromonitor's Passport Consumer Healthcare database.
See all of our definitionsWhy buy this report?
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This report originates from Passport, our Tobacco research and analysis database.
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