Heating non-combustible tobacco benchmarking product IQOS was officially launched in Japan in April 2016. Its smoking sensation is close to real smoke with a 90% reduction in smoking harmful substances. Since its launch in Japan for more than a year, its market share soared to 7.1% due to shortage of capacity and sales restrictions. Japan's conversion rate to Japanese smokers is expected to reach over 10% in the future.
China's tobacco market reached more than 1 trillion yuan. If similar products can be sold domestically, with a conversion rate of 5% -10%, China will develop from scratch in a year or two to a new tobacco of 50-100 billion yuan Market, a huge industry opportunity! At present, China has completely banned the import of such products, and various tobacco manufacturers and electronic cigarette companies are actively developing similar products.