Tag: South Korea

  • South Korea: Sales of Heated Products Likely to Edge Up

    South Korea: Sales of Heated Products Likely to Edge Up

    Photo: KT&G

    Sales of heated tobacco products in South Korea will likely edge up this year, even as the overall tobacco market is expected to decline, reports The Korea Herald, citing figures from Euromonitor International.

    According to the market intelligence company, the Korean tobacco market reached KRW17.19 trillion ($16 billion) in 2019. Of that figure, KRW1.89 trillion was spent on heat-not-burn cigarettes, making South Korea the second-largest market for such products after Japan.

    Euromonitor forecast Korea’s heating tobacco product market to reach KRW2 trillion in 2020.

    Sales of e-cigarettes are expected to drop by 80 percent to KRW16.8 billion this year in the wake of new government restrictions on the category.

    Flavored tobacco products, meanwhile, are gaining popularity in Korea. Last year, flavored products accounted for about 20 percent of South Korea’s conventional cigarette market, which is higher than in Japan (7 percent) and China (1.7 percent).

  • Lil Hybrid 2.0 Goes Nationwide in Korea

    Lil Hybrid 2.0 Goes Nationwide in Korea

    Photo: KT&G

    KT&G will expand the sales of its Lil Hybrid 2.0 heated tobacco cigarette to all cities in South Korea.

    The product debuted in February in major cities, such as Seoul, and expanded to 37 metropolitan areas in April.

    The expansion follows a series of inquiries from consumers in areas where the product had not yet been released, according to Lim Wang-seop, business director for next-generation products at KT&G.

    “Since the launch of the product, we have continued to expand our sales outlets,” Lim said. “We will continue to lead the e-cigarette market by strengthening product competitiveness and enhancing customer satisfaction through technological innovation.”

    Lil Hybrid 2.0 is equipped with a function that automatically warms up when a stick is inserted for the first time. An OLED display provides information on the battery charge, the cartridge level and the remaining number of puffs.  

    The recommended consumer price is KRW110,000 ($90.27).

  • Juul Labs to Exit South Korea, 5 EU Markets

    Juul Labs to Exit South Korea, 5 EU Markets

    Juul Labs said today it would end operations in South Korea, a year after it entered the market. The company states the cause was its inability to gain market share amid government health warnings.

    In a statement, Juul Labs stated that since the beginning of the year it was working through a restructuring process aimed a re-establishing a viable business in South Korea by significantly reducing costs and making changes to its products.

    “However, these innovations will not be available as anticipated,” the statement said. “As a result, we intend to cease our operations in South Korea.”

    In October last year, South Korea’s health ministry advised people to stop vaping because of growing health concerns, especially after a case of pneumonia was reported in a 30-year-old e-cigarette user that month, according to Reuters news article.

    The announcement prompted convenience store chains and duty free shops to suspend the sale of flavored liquid e-cigarettes, including those made by Juul Labs.

    In December, South Korean health authorities said they had found vitamin E acetate, which may be linked to lung illnesses, in some liquid e-cigarette products made by Juul Labs, but the company denied using the material, according to Reuters.

    Juul Labs launched a product portfolio that was specifically developed for the Korean market in May 2019, but “our performance has not met expectations in terms of meeting the needs of our Korean adult smokers to successfully transition from combustible cigarettes,” according to the statement. “We have learned through this process and are focused on innovating our product portfolio.”

    Juul Labs is also reportedly ready to withdraw from a handful of EU markets as well, claiming the regulatory environment has become overly hostile to the device.

    According to BuzzFeed News, Juul will soon remove its products from shelves in Austria, Belgium, Portugal, France, and Spain.

    The news outlet reports the European Union’s strict requirement that e-cigs contain no more than 20 milligrams of nicotine makes it difficult for Juul to do business there.

    Austria, Belgium, and Portugal are very small markets for Juul, but the leading e-cig manufacturer generates significant sales from France and Spain. It will exit France by the end of the year, but withdraw from the other countries in July, paring its presence in global markets to a narrow selection that includes Germany, Italy, Russia, and the U.K.