Summary

Japan is known for its unique tobacco culture and high consumption of tobacco products, particularly cigarettes. The country has a longstanding history of tobacco use, with a distinctive style of smoking and various traditional rituals associated with it. Smoking in Japan has deep cultural roots; one of the notable features of Japan's tobacco market is the dominance of Japan Tobacco Inc. (JT), a government-controlled tobacco company. JT produces and markets popular cigarette brands like Mevius (formerly known as Mild Seven), Winston, and Camel. The Japanese government has traditionally held a significant stake in JT, which has allowed it to have substantial influence over the tobacco industry. Japan has also been proactive in implementing measures to reduce the health risks associated with smoking. The government has mandated graphic warning labels on cigarette packaging to inform consumers about the dangers of smoking. It has also introduced smoking bans in public places and public transport, promoting a cleaner and healthier environment for both smokers and non-smokers. In recent years, Japan has seen an increase in the popularity of reduced-risk alternatives to traditional cigarettes, such as heated tobacco products. Philip Morris International's IQOS, a heat-not-burn device, has gained significant traction in the Japanese market. These products have been touted as potentially less harmful alternatives to conventional smoking, and their growth reflects changing consumer preferences and a shift towards harm reduction.

According to the research report "Japan Tobacco Product Market Overview, 2028," published by Bonafide Research, the market was valued at more than USD 33 Billion in 2022. Japan indeed had a unique dynamic within the tobacco products market. While cigarette consumption remained relatively high compared to many other developed countries, the market was experiencing a noticeable shift due to the introduction of alternative products, particularly heated tobacco devices like Philip Morris International's IQOS. Cigarette smoking in Japan is deeply rooted in the culture, and it's not uncommon to witness smokers enjoying their preferred brands in designated smoking areas throughout the country. However, the introduction of heated tobacco products had a significant impact. These devices were positioned as potentially less harmful alternatives to traditional smoking, drawing the interest of a wide demographic, including youngsters. Younger consumers in Japan appeared to be attracted to these innovative products, often drawn by the perception that they offered a "cleaner" and less odorous smoking experience. The growth in this segment of the market was remarkable and reflected a global trend of consumers seeking harm reduction alternatives. The introduction of various tobacco product alternatives, such as water pipes, cigars, and cigarillos, has contributed to the diversification of the tobacco market in Japan. While traditional cigarette consumption has historically been high, the availability of these alternative products has expanded the choices available to consumers.

The tobacco products market features a clear segmentation based on product types, encompassing categories such as Cigarettes, Smokeless Tobacco, Cigar and Cigarillos, Next Generation Products, and Kretek. Historically, Cigarettes have held the largest market share, reflecting the long-standing preference for traditional smoking in Japan. Following Cigarettes, Smokeless Tobacco, which includes products like snus and chewing tobacco, has also held a significant share of the market, catering to different consumer preferences. A notable trend in the Japanese tobacco market is the anticipation of growth in Next Generation Products. These products, which often include electronic cigarettes, heated tobacco devices, and other innovative alternatives to traditional smoking, are gaining popularity as consumers seek reduced-risk options. The rise of Next Generation Products aligns with a broader global trend toward harm reduction and a heightened awareness of the health risks associated with traditional smoking. As regulations and consumer preferences continue to evolve, it is expected that Next Generation Products will play a more prominent role in the Japanese tobacco market in the coming years.

Tobacco products are distributed through a wide range of retail channels, and the market is divided into multiple separate segments. Specialty stores, hypermarkets/supermarkets, convenience stores, the internet, and other outlets are some of these channels. Specialty stores have historically dominated this industry because they provide a broad selection of tobacco goods, accommodate a variety of customer preferences, and offer an experienced and specialized shopping environment. Hypermarkets and supermarkets are right behind in terms of accessibility, as tobacco products are readily available alongside other daily necessities, catering to a wide range of customers. Convenience stores, which provide the benefit of closeness and extended hours of operation for consumers seeking convenience, have also played a key influence. Nonetheless, a noteworthy and growingly important trend in the tobacco industry is the expansion of online sales. This rise is consistent with broader developments in e-commerce and shifting customer preferences, especially the desire for the discretion and convenience of online tobacco product purchases. The tobacco distribution sector is expected to undergo significant changes in the near future due to the expected growth in online sales and the regulatory environments' adjustment to digital commerce. This development demonstrates how the market is always changing due to shifts in consumer purchasing behaviors and the impact of emerging technology on the buying and consumption patterns of products.

Considered in this report:
•Geography: Japan
•Historic year: 2017
•Base year: 2022
•Estimated year: 2023
•Forecast year: 2028

Aspects covered in this report:
•Japan Tobacco Product market with its value and forecast along with its segments
•Various drivers and challenges
•On-going trends and developments
•Top profiled companies
•Strategic recommendation

By Product:
•Cigarette
•Smokeless Tobacco
•Cigar and Cigarillos
•Next Generation Products
•Kretek

By Distribution Channel:
•Speciality Store
•Hypermarket/supermarket
•Convenience Stores
•Online
•Others

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and list out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, and annual reports of companies, analyzing the government-generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers into regional aspects, tier aspects, age groups, and gender. Once we have primary data with us we started verifying the details obtained from secondary sources.

Intended audience:
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the Tobacco Product industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.

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