Introduction

The vape industry continues to evolve rapidly in 2024, with major tobacco companies shifting focus toward e-cigarettes, heated tobacco products (HTPs), and nicotine pouches. The rise of fruit-flavored vapes, regulatory changes, and competition from disposable vapes are reshaping the market.

This report analyzes the latest developments from Philip Morris International (PMI), British American Tobacco (BAT), Japan Tobacco (JT), and others, providing insights into vapor products, market trends, and future growth opportunities.

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1. Philip Morris International (PMI): Dominating the Smoke-Free Future

Financial Performance (2024)

• Net Revenue: $37.88B (+7.7% YoY)
  • Combustible tobacco: $23.22B (+4.0%)
  • Smoke-free products: $14.66B (+14.2%)
• IQOS Success: $11B in revenue (surpassing Marlboro)
• VEEV E-Cigarettes: Expanded to 40 markets, ranking top 3 in 13 European countries

Key Strategies

✔ IQOS Expansion: Now in 76 countries, adding 3.4M new users (total: 32.2M)
✔ Nicotine Pouches (ZYN): Sales up 52.9%, now the #1 smoke-free brand in the US
✔ Exiting Cigars: Planning to sell its US cigar business due to declining sales

Regulatory Wins

• FDA approvals for IQOS, VEEV, and ZYN
• Direct control over US IQOS sales (previously handled by Altria)

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2. British American Tobacco (BAT): Struggles in Vape & Heated Tobacco

Financial Performance (2024)

• Net Revenue: £25.87B (-5.2% YoY)
• Vuse E-Cigarettes: Sales declined 5.9% due to US illicit vape market & flavor bans
• Glo Heated Tobacco: Sales down 11.6%, lagging behind IQOS

Key Strategies

✔ Velo Nicotine Pouches: Expanded to 44 markets, sales up 55%
✔ New Vape Products: Launching VEO (tobacco-free heated product)
✔ Investment in Non-Nicotine Ventures: £200M fund for alternative products

Regulatory Challenges

• FDA approvals for 22 Vuse products, but illegal disposables hurt sales
• Canada’s flavor ban impacting performance

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3. Japan Tobacco (JT): Growth in Combustibles & Heated Tobacco

Financial Performance (2024)

• Net Revenue: ¥3.15T (+10.9% YoY)
• Ploom Heated Tobacco: Sales up 24.2%, now in 24 markets
• Winston & Camel Cigarettes: Strong growth in Russia & Turkey

Key Strategies

✔ Acquisition of Vector Group (US): Now owns 8% of US cigarette market
✔ Focus on Premium Cigarettes: Higher pricing driving revenue

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4. Emerging Trends in the Vape Industry (2024)

A. The Rise of Disposable & Fruit-Flavored Vapes

• Disposable vapes (e.g., Elf Bar, Lost Mary) dominate US & EU markets
• Fruit & dessert flavors drive youth adoption, raising regulatory concerns

B. Regulatory Crackdowns

• FDA bans on flavored vapes (except tobacco/menthol)
• EU considering stricter vape regulations

C. Shift Toward Smoke-Free Alternatives

• Heated tobacco & nicotine pouches growing faster than e-cigarettes
• PMI & BAT aim for 50% smoke-free revenue by 2035

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Conclusion: What’s Next for the Vape Industry?

• IQOS & ZYN will lead smoke-free growth
• Disposable vapes face increased bans
• Fruit-flavored vapes remain popular but under regulatory pressure

For vape sellers, focusing on FDA-compliant products, nicotine pouches, and heated tobacco will be key to long-term success.