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Heated tobacco is rapidly transforming nicotine consumption in Europe, and nowhere is this shift more evident than in Italy. Since 2015, Italy has led the way in this market, which now stands as the largest by value on the continent.
Results from a recent TobaccoIntelligence consumer survey report shows the 2024 Italian market is valued at an estimated $4.5bn, marking a 15% increase from the previous year. The usage rate has also surged, rising from 9% in 2023 to 17% in 2024. This growth cements Italy’s role as a pivotal player in the European heated tobacco landscape.
Italian consumers display distinct behaviours when it comes to heated tobacco products (HTPs). A vast majority – 89% – are daily users, with a significant concentration in the 30- to 44-year-old age group. Long-term users tend to increase their daily stick consumption over time, reflecting a deepening commitment to HTPs.
For many Italians, the primary appeal of heated tobacco lies in the perception that it is a healthier alternative to conventional cigarettes. Users also appreciate the absence of lingering smoke odours, a factor that underscores shifting attitudes towards smoking and public health.
Iqos and Glo dominate the Italian market
The Italian market is dominated by two key players: Iqos and Glo. Iqos in particular has captured a significant market share, with 63% of respondents to the consumer survey reporting using it, while Glo accounts for 27%. Within the Iqos range, models such as Iqos Iluma, Iqos 3 Duo and Iqos Iluma Prime are the most popular, which shows strong brand loyalty among consumers.
Despite the presence of alternative brands like Pulze, Ploom and Lil, these constitute only about 10% of the market. A complex consumption pattern was revealed that includes a high incidence of dual and multi-product usage: 51% of those surveyed identified themselves as dual users, 36% as multi-users, and 76% of respondents also smoke combustible cigarettes alongside using HTPs.
In response to the EU ban on sticks containing flavoured tobacco, brands have developed and distributed herbal sticks as an alternative, but Italians have not fully embraced tobacco-free herbal sticks. According to our consumer survey, around 41% of respondents use these herbal options, with 39% mixing them with tobacco-containing sticks and just a small fraction (2%) opting for herbal sticks exclusively. Health considerations are a significant driver here, as 40% of herbal stick users cite perceived health benefits as a major reason for their choice.
The fact that tobacconists are still where most consumers go to purchase these products speaks to Italy’s enduring retail traditions even amid rapid market innovation.
Positive knock-on effect for HTP producers across Europe
The impressive performance of the Italian market resonates across Europe and has important implications for major tobacco companies operating in the heated tobacco space. British American Tobacco (BAT) reported an 11.6% decline in volume for its Glo brand and a 7.6% decrease in revenue, a downturn influenced by its having stopped operating in Russia and Belarus in 2023. Despite these setbacks, Glo has shown signs of recovery in markets such as Poland and the Czech Republic, and it has maintained stability in Italy – a testament to Italy’s role as a market anchor in Europe.
In contrast, Japan Tobacco International (JTI) has experienced growth across all its markets. The company reported a 12.6% share in Japan by the fourth quarter of 2024, further bolstered by its strategic $2.4bn acquisition of Vector Group. JTI’s impressive performance, driven by strong double-digit volume growth in its reduced-risk product segment and the surging popularity of Ploom, highlights the competitive advantage and innovation fuelling the heated tobacco industry.
Philip Morris International (PMI) is also making significant strides in Europe, particularly through its Iqos brand. The company’s shipment volumes reached 139.7bn units, and its market share is gaining momentum in key cities such as Budapest, Rome, London and Madrid. PMI’s continued rollout of the Iluma i device, along with new consumable options like Delia and Levia, signals a commitment to innovation and market expansion. These efforts have positioned PMI to potentially impact shipments and in-market sales by around 1bn units in 2025, following a substantial influence in 2024.
With sustained growth projections and strategic investments from major players like BAT, JTI and PMI, the future of heated tobacco in Europe is looking strong and poised for further transformation. Italy’s dynamic market not only reflects the current trends but also offers a glimpse into the evolving nature of tobacco consumption and the strategic realignments that will shape the industry in the years to come.
– Antonia Di Lorenzo TobaccoIntelligence staff
Photo: user32212
