Tobacco in 2024: The big picture
In 2024, the South Korean tobacco market was significantly influenced by new products and environmental changes. In particular, the explosive growth of heated tobacco contributed to a decline in the consumption of traditional cigarettes. Persistent high inflation after the COVID-19 pandemic has heightened smokers’ price sensitivity, driving some to seek more affordable or efficient means of nicotine intake. At the same time, the spread of illegal and unregulated liquid e-cigarettes that circumvent existing regulations has caused confusion in the market. In response, the South Korean government has moved to strengthen regulations on synthetic nicotine liquid products to protect minors and safeguard public health.
2024 key trends
During the year, heated tobacco emerged as the most noteworthy subcategory in the South Korean tobacco market. Once regarded as niche, heat-not-burn (HNB) devices have expanded to account for a substantial proportion of total tobacco consumption. According to Philip Morris Korea (PMI), one in five smokers in Korea has shifted to heated tobacco devices. Local consumers have begun to prefer alternatives with reduced odour and smoke compared to traditional combustible cigarettes, driving the popularity of devices such as Iqos and Lil. The surge in sales of dedicated heated tobacco sticks has also made this segment, alongside cigarettes, a major force in the local tobacco market.
Competitive landscape
In the domestic tobacco market, the local company KT&G Corp continued to dominate in 2024 with an overwhelming lead. As of 2024, KT&G has solidified its position at the top by securing over 60% of market share. This dominance is underpinned by its long-established nationwide distribution network, a diverse brand portfolio (including Esse and Raison), and the strong performance of its Lil series in e-cigarettes. Even amid the heated tobacco boom, KT&G has maintained a loyal customer base for its traditional cigarettes while swiftly launching new e-cigarette products to keep pace with market shifts. As a result, the company has successfully increased market share of domestically produced e-cigarette sticks and sustained its overall leadership.
Retail developments
The distribution of tobacco sales in South Korea continued to revolve primarily around convenience stores in 2024. With around 40,000 stores across the country, convenience stores function as a mainstay for tobacco sales, using age verification to ensure legal purchases, and consumers can easily buy tobacco products at almost any location. In fact, cigarettes account for as much as 30-40% of total sales at major convenience store chains, effectively making convenience stores modern-day tobacco shops.
What next for tobacco?
Over the forecast period, the South Korean tobacco market is expected to struggle somewhat. This is largely due to rising health consciousness and evolving social perceptions of smoking, which continue to drive a steady decline in adult smoking rates. Meanwhile, the National Assembly is discussing ways to strengthen regulations on e-liquid cigarettes and synthetic nicotine products, yet no specific legislative amendments have been confirmed. As a result, it remains unclear whether these products will eventually be subject to rules or taxes like those for traditional cigarettes, making it difficult to forecast the market impact at this stage.
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Overview:
Understand the latest market trends and future growth opportunities for the Tobacco industry in South Korea 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 South Korea, 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 South Korea 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 South Korea?
- Which are the leading brands in Tobacco in South Korea?
- How are products distributed in Tobacco in South Korea?
- Which category is the most heavily taxed in South Korea?
- How is the operating environment for Tobacco changing?
- What are the current legislative restrictions applicable to the sale of Tobacco products in South Korea?
- 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 South Korea
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
Flavoured tobacco product ban
Vapour products
PRODUCTION/IMPORTS/EXPORTS
DISCLAIMER
Cigarettes in South Korea
KEY DATA FINDINGS
Decline in smoking prevalence undermines demand for cigarettes
KT&G leads cigarettes in South Korea
Convenience channel maintains stronghold
Cigarettes to suffer falling volume sales
Demand will further fragment
Investment in flavoured variants aims to boost appeal of smoking
Taxation rates
Average cigarette pack price breakdown
Cigars, Cigarillos and Smoking Tobacco in South Korea
KEY DATA FINDINGS
Cigars and cigarillos record robust rises in 2024
Corporación Habanos leads cigars and cigarillos
Food/drink/tobacco specialists leads in 2024
Rising volume sales predicted for cigars and cigarillos
Premiumisation trend to accelerate
Cigars remain scarce in convenience stores
Smokeless Tobacco, E-Vapour Products and Heated Tobacco in South Korea
KEY DATA FINDINGS
Strong growth seen in 2024
BubbleMon faces increased competition
Tobacco specialists, e-commerce and convenience stores as strong channels
Possibility of stricter legislation for e-vapour products
Heated tobacco to rise as player increase investment in branding
Tech advancements will drive development
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.
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This report originates from Passport, our Tobacco research and analysis database.
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