Korean Tobacco Company's 2024 Financial Report: Strong Growth in Vape and E-Cigarette Sales

The global vape, vapor, and e-cigarette industry continues to expand, with major players like Korean Tobacco Company (KT&G) leading the charge in innovation and market growth. The company recently released its 2024 financial report, showcasing impressive performance in both traditional tobacco and next-generation products, including fruit-flavored vape offerings.

Since 2000, KT&G has aggressively expanded into international markets, establishing subsidiaries in Indonesia, Turkey, Kazakhstan, and Uzbekistan. This global strategy has significantly contributed to its revenue and profit growth, particularly in the e-cigarette and heated tobacco segments.

In this article, we’ll analyze KT&G’s 2024 financial results, explore the rising demand for vape products, and discuss how the company plans to maintain its competitive edge in 2025.

KT&G’s 2024 Financial Highlights

Record-Breaking Revenue and Profits

KT&G reported strong financial results for Q4 2024, with:

Revenue: 1.5571 trillion KRW (≈ $1.16 billion USD), an 8% increase YoY
Profit: 2085 billion KRW (≈ $1.56 billion USD), up 5.3% YoY

For the full year 2024, the company achieved:

Total revenue: 5.9095 trillion KRW (≈ $4.42 billion USD), a 0.8% increase
Net profit: 1.1848 trillion KRW (≈ $887 million USD), up 1.5%

These figures mark historic highs for KT&G, reinforcing its position as a dominant player in the global tobacco and vape industry.

Strong Performance in Traditional Tobacco

Under the leadership of CEO Bang Jeon-wan (since March 2023), KT&G has focused on strengthening its core tobacco business while optimizing financial structures. Key highlights include:

Q4 2024 tobacco revenue: 7860 billion KRW (≈ $5.88 billion USD), a 13.2% increase
2024 full-year tobacco revenue: 3.9063 trillion KRW (≈ $2.92 billion USD), up 8.1%
Operating profit: 1.0815 trillion KRW (≈ $809 million USD), a 10.7% rise

Globally, cigarette sales volume grew by 10.3%, while sales revenue surged by 28% to 1.4501 trillion KRW (≈ $1.08 billion USD). This growth was driven by strong demand in emerging markets and premium product offerings.

Next-Generation Tobacco & Vape Products: A Key Growth Driver

Heated Tobacco & E-Cigarette Sales Surge

KT&G’s next-generation tobacco products, including e-cigarettes and heated tobacco devices, have seen steady growth in domestic and international markets:

Domestic heated tobacco sales: 6.15 billion units (↑ 7.7% YoY)
Overseas heated tobacco sales: 8.34 billion units (↑ 1.5% YoY)

The company has also expanded its fruit-flavored vape offerings, catering to younger consumers who prefer sweet and exotic flavors. This strategy aligns with global vape market trends, where flavored e-cigarettes dominate sales.

Global Expansion in the Vape Market

KT&G has been aggressively entering new markets, particularly in regions where vaping regulations are favorable. Key markets include:

Southeast Asia (Indonesia, Philippines)
Middle East (UAE, Saudi Arabia)
Eastern Europe (Russia, Kazakhstan)

The company’s Lil Hybrid and Fiit e-cigarette brands have gained traction, competing with industry giants like JUUL and RELX.

2025 Strategy: Cost Efficiency & Profit-Driven Growth

KT&G aims to increase revenue by 5% and profits by 6% in 2025, focusing on:

Cost-Effective Production – Streamlining manufacturing to reduce expenses.
Profit-Oriented Financial Strategy – Prioritizing high-margin products like premium vapes and e-cigarettes.
Global Market Expansion – Strengthening presence in Africa and Latin America.
Innovation in Vape Flavors – Introducing new fruit-flavored vape options to attract younger demographics.

A company spokesperson stated:
“2024 was a strong year for KT&G, with growth in both sales and operating profit. Despite increasing market uncertainties in 2025, we will continue expanding globally, enhancing competitiveness, and delivering value to shareholders.”

The Future of Vaping: Trends to Watch

1. Rising Demand for Fruit-Flavored Vapes

Consumers, especially Gen Z and Millennials, prefer sweet and fruity e-cigarette flavors over traditional tobacco tastes. Expect more berry, mango, and watermelon vape products in 2025.

2. Stricter Global Regulations

Countries like the U.S. and UK are tightening vape laws, banning certain flavors and restricting marketing. However, Asia and the Middle East remain growth hotspots.

3. Heat-Not-Burn (HNB) Technology Gains Popularity

KT&G’s heated tobacco products are becoming a safer alternative to smoking, appealing to health-conscious users.

4. Increased Competition from Chinese Vape Brands

Companies like RELX, SMOK, and VOOPOO are dominating the disposable vape market, pushing KT&G to innovate faster.

Conclusion

KT&G’s 2024 financial report highlights its strong performance in traditional and next-gen tobacco products, including vapes, e-cigarettes, and fruit-flavored vape offerings. With a clear 2025 growth strategy, the company is well-positioned to capitalize on the booming global vape market.

For independent vape sellers, staying updated on industry trends and regulatory changes is crucial. As fruit-flavored vapes and heat-not-burn devices gain popularity, aligning product offerings with consumer demand will be key to success.

Stay tuned for more updates on the latest in vaping, e-cigarettes, and tobacco industry news!