Heated Tobacco Tops 50% of Japan's Nicotine Market as IQOS Near 70% of Category

Japan's heated tobacco category crossed the halfway mark of national nicotine offtake in December 2025, according to data from the Toyo Keizai business weekly, as Philip Morris International reported the broader category exceeded 50 percent of the market.

The shift is no longer confined to the capital region. Heated tobacco had passed the 50 percent threshold in 19 of Japan's 20 major cities and in 16 of the country's 47 prefectures, PMI said in a February statement. IQOS, PMI's heat-not-burn platform, holds close to 70 percent of the heated tobacco category by volume, well ahead of rival systems.

Japan Tobacco's Ploom and British American Tobacco's glo remain in pursuit but trail the category leader. The three major tobacco groups have since moved into nicotine pouches, with Altria's ZYN expanding locally, broadening the noncombustible offer beyond heated sticks.

Tax policy has reinforced the trend. A change that took effect on October 1 narrowed the price gap between combustible cigarettes and heated tobacco, reducing the cost barrier that previously kept some consumers from switching. Analysts said the adjustment removes one of the last economic arguments against the switch.

For PMI, the Japanese result matters beyond the local figures. Japan remains one of the largest single markets for heated tobacco, and the December milestone, combined with the spread across most of the country's major cities, suggests the category is now structurally embedded rather than still in early adoption.