Market.

A decade-long study published in The Lancet Regional Health – Western Pacific found that heated tobacco product use in Japan increased from 0.1% in 2015 to 14.9% in 2025, although growth slowed after 2018. Switching from conventional cigarettes remained an important source of HTP uptake, while the contribution from previously non-current users increased. Approximately 56% of HTP users also smoked conventional cigarettes in 2025. Separate industry data show that Japan's heated tobacco sales reached 73.4 billion units in fiscal 2025, approaching conventional cigarette sales of 78.2 billion units.

Italy's proposed 2027–2029 budget would bring forward scheduled tax increases for e-cigarette liquids and heated tobacco products from January 1, 2028, to July 1, 2027. The consumption tax coefficient for nicotine-containing e-liquids would rise from 20% to 22%, that for nicotine-free liquids and applicable flavorings from 15% to 17%, and the heated-tobacco coefficient from 41% to 42%. The bill would also introduce official retail price schedules for e-liquids, restrict exclusive agreements between retailers and suppliers, and limit single-brand-dominated displays, sales incentives and bundled offers. Importing, authorized warehousing and retailer sourcing arrangements would also change. The proposals remain subject to parliamentary approval and subsequent implementing regulations.

Japan Tobacco Inc. (JT) launched Nordic Spirit Rich Melon Medium through selected tobacco retailers in Japan on November 2, 2026, while expanding physical retail distribution for three existing mint products previously sold through the CLUB JT online store. The melon launch brings Nordic Spirit's Japanese portfolio to eight SKUs. All four products are manufactured in Sweden, contain a standard 14 pouches per can and retail for ¥500 including tax. Since introducing Nordic Spirit in Japan in March, JT has expanded the brand's product lineup and distribution through its online store, convenience stores and selected tobacco retailers.

British American Tobacco's Japanese subsidiary, BAT Japan, launched VELO Mango Ice Medium on November 2, 2026, with distribution expanding to selected 7-Eleven, FamilyMart, NewDays and Seicomart stores from November 3. The new oral tobacco product contains 15 pouches per can and retails for ¥380, featuring a mango and cooling flavor profile at Medium intensity. At the same time, BAT Japan raised prices on multiple existing VELO products from ¥360 to ¥380 per can and withdrew selected SKUs from convenience store distribution without discontinuing them entirely. The changes affect product assortment, pricing and retail channel allocation.

British American Tobacco (BAT)'s VELO brand launched the VELO WRKS nicotine pouch range in Sweden on November 2, 2026. The initial release features three Dual Can variants, each containing two separate flavours in a dual-compartment container. Each can holds 20 slim pouches with 8mg of nicotine per pouch and retails for SEK 52.99. According to VELO, the first release, Drop 1, is limited to 75,000 cans and will remain available until February 2027 or while stocks last. VELO positions WRKS as a platform for testing new product concepts and has introduced an online consumer feedback survey. EU trademark records show BAT applied to register VELO WRKS in March 2026 under Class 34, covering nicotine pouches, e-cigarettes, heated tobacco products and other tobacco-related goods.

Philip Morris International (PMI) introduced TEREA Bold Red and Bold Black heated tobacco sticks in Germany in October 2026, both carrying a brand-rated tobacco-flavor intensity of 10, the highest level in the country's TEREA portfolio. Bold Red features leather and warm woody notes, while Bold Black combines woody and subtle floral notes. Both are sold in 20-stick packs at €8, approximately 2.6% above standard TEREA products. Germany's TEREA range now includes 11 flavor variants, alongside a separate 26-stick XL format priced at €10. IQOS Germany announced the new products on October 12, followed by a phased retail rollout from late October and an IQOS Club campaign running through December.

Philip Morris Japan launched its fourth confirmed nationwide convenience-store discount campaign for IQOS ILUMA i devices in 2026 on October 26, cutting three models by as much as ¥2,000, or about $12.70. The campaign began one day after JT ended a promotion that reduced Ploom AURA to ¥1,480, or about $9.40. JT says Ploom's share of Japan's heated-products category rose from 10.9% in January 2024 to 18.3% in June 2026, a gain of 7.4 percentage points, while PMI says IQOS still held about 68% category share in the third quarter. At the same time, Japan's two-stage heated-tobacco tax adjustment has pushed stick prices higher, leaving device discounts as an increasingly important tool for lowering the upfront cost of customer acquisition.

Philip Morris Japan (PMJ) launched the limited-edition IQOS ILUMA i PRIME Soundsorial Model in collaboration with French audio brand DEVIALET on October 1, 2026. Featuring sound-wave patterns, a silver-and-black finish and a gradient holder, the heated tobacco device is priced at JPY 15,980, including tax, and is available at four IQOS stores in Japan. According to Japanese media citing a PMJ representative, about 1,900 units were allocated to the Japanese retail market. A separate Soundsorial Collection, combining the device with DEVIALET Gemini II earbuds, includes 440 sets allocated to Japan for a membership prize draw.