Next Generation Products: Japan Tobacco International

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Like its competitors, Japan Tobacco International (JTI) has been investing in tobacco and nicotine products that, unlike cigarettes, have potential for growth in developed markets.1These products are known as Next Generation Products and are often publicly linked to tobacco companies’ harm reduction strategies and labelled “reduced-risk products” (RRPs).

On its corporate website, JTI underlined the importance of “RRPs” to the company’s future:

“RRPs are core to the sustainability of our business, as we need to meet ever-evolving, increasingly diverse consumer demands with the best and widest variety of smoking experiences. That’s why we have committed to providing the widest range of consumer choice in the RRP category.2

Products that fall into this category are snus, e-cigarettes, and heated tobacco products.


Image 1: JTI’s Nordic Spirit snus-type nicotine pouches (screenshot taken from, November 2019)

Snus is a smokeless tobacco product, traditional to Sweden, sold as a paste or in a tiny pouch that is placed between the gum and upper lip for a period of time.

  • For more details about this product, see our page on Snus.

Gallaher, acquired by JTI in 2007, was the first cigarette company to invest in snus when it bought a small Swedish snus manufacturer called Gustavus in 2002.3 Tobacco Control, 2013; 22:266-273 In 2013, JTI’s parent company, Japan Tobacco briefly trialed Zerostyle snus in Osaka, Japan, but with little apparent success. 4

From 2017, JTI has been selling snus in Norway and Sweden through its wholly-owned subsidiary, Nordic Snus.5 It sells two brands, LD and Nordic Spirit, the latter being a tobacco leaf-free nicotine pouch (see image 1).6

The product category only featured twice in the company’s 2018 annual report,7 both times as a footnote only. And although the company continues to sell snus-type products, the focus of JTI’s NGP strategy is on HTPs and e-cigarettes.

Heated Tobacco Products

Image 2: JTI Ploom products (Source: @JTI_global, Tweet 18 January 2019, Twitter)

JTI’s current HTPs use a hybrid technology which heats a liquid to create a vapour (similar to an e-cigarette), and then passes the vapour through a tobacco-containing capsule. In 2010, JTI’s parent company Japan Tobacco had launched Zerostyle Mint in Japan, which it described as a “smokeless”, snuff-like tobacco product. However, this device required the user to inhale by mouth through a capsule containing tobacco leaf, unlike snuff which is placed directly in the nose.8

Although this was not an HTP, as it did not require lighting or heating, it was a precursor to later devices in terms of its design and also the company’s NGP strategy. Zerostyle Mint was not marketed as a reduced-risk product, but nonetheless was a way for JTI to circumvent social problems associated with smoking, as well as smoke-free regulations. JT’s media release stated at the time:

“The new product does not require a flame, and thus is smokeless, allowing consumers to use it in a variety of locations, being considerate to neighbors [sic] at the same time”.


In 2011, JTI entered into a partnership with San Francisco-based entrepreneurial company Ploom Inc. (which was later renamed Pax Labs: for more information see JUUL Labs.10 The aim was to commercialise Ploom Inc.’s HTP product, called Ploom, outside the US.11 It is likely that when JTI gained access to the Ploom product, it ceased sales of its own Zerostyle product. The last time Zerostyle featured in JT corporate external communications was October 2013.12

The partnership between JTI and Ploom Inc. came to an end in 2015, and JTI acquired a number of patents and trademarks relating to the product.13 Since then, JTI has continued to develop, and bring to market, variants of Ploom.

In 2019, the company had three Ploom products in its portfolio: Ploom TECH, Ploom TECH+, and Ploom S (see image 2).2 “What sets the Ploom TECH products apart from other HTPs on the market is that they heat tobacco at “low temperature”: 30°C and 40°C, respectively.1415 In comparison, a conventional cigarette heats to around 600°C;16 Philip Morris International’s IQOS to 350°C;17 British American Tobacco’s glo to 280°C;18 and Ploom S, developed by JTI after Ploom TECH, to 200°C.15 JTI sells a range of tobacco sticks for use with Ploom devices under its Mevius tobacco brand. 19
In December 2019, Japan Tobacco announced that it was introducing new sticks under the Camel brand, for sale in Japan from 2020.20

JTI’s HTPs are sold in Japan, Switzerland, the United States (US) and Canada.21 Despite HTPs appearing to be the main focus of JTI’s NGP strategy, the company has struggled to gain market share, especially in its domestic market. JTI has been criticised for not being able to keep up with market leader PMI, which according to Reuters held 71.8% of Japan’s HTP market in 2018.22 JTI initially attributed this to repeated production delays which resulted in the company having to suspend sales and being unable to meet consumer demand.23 But in its 2019 Q3 Results presentation to investors, the company admitted that it was facing “increasing competition in the high-temperature heating category” and that its products were not adequately meeting consumer needs.24 On its Ploom S product, which was launched in August 2019 (and which falls in the ‘high-temperature heating category’), the company reported that “Trials and retention [were] below our expectation”. A company press release followed in November 2019, announcing that JT was permanently reducing the retail price of Ploom S in Japan from 7,980 yen to 3,480 yen (USD equivalent: $72 to $31).25

JTI appears more cautious in its reduced risk claims than its main competitors, PMI and BAT. In 2019, the company website stated: “We cannot say today that Ploom TECH is safer than smoking regular cigarettes but tests have shown that Ploom TECH has a 99% reduction in the constituents recommended by WHO for reduction in cigarette smoke.”2 However, elsewhere on the website JTI wrote: “Many consumers also choose vaping products for their reduced-risk potential. Increasingly convincing new evidence is emerging that justifies these choices.26 The company did not indicate what “convincing new evidence” it was referring to.


Image 3: JTI’s Logic e-cigarette (screenshot taken from, November 2019)

E-cigarettes, also known as electronic cigarettes or Electronic Nicotine Delivery Systems (ENDS), do not contain tobacco. The product consists of a battery, a cartridge with nicotine liquid, and a heating mechanism that heats up the liquid to create a vapour.

In 2014, JTI entered the e-cigarette market by acquiring small e-cigarette companies. First it bought UK-based Zandera, followed one year later by US company Logic. JTI initially sold two brands, E-Lites and Logic, but since 2016 all its e-cigarettes have been sold under the Logic brand (see image 3). In October 2019, the company stated that Logic was sold in 19 countries, including recent launches of the Logic Compact device in the Czech Republic, Germany, Israel and New Zealand. 25

For more information, including Logic market share, go to E-Cigarettes: Japan Tobacco International.

Collaboration with Entrepreneurs

To complement its internal NGP Research & Development program, JTI collaborates with tech start-ups to help it grow its NGP business.

As detailed above, the company partnered with entrepreneurial company Ploom Inc in 2011 to develop HTPs. More recently, JTI enlisted the services of tech broker Plug and Play to run a program called “Vapetech”, which allows start-ups to pitch ideas to JTI to help it “explore and develop consumer relevant features for the next generation of products and services”.27 According to the JTI press release, up to 20 start-ups a year will be given the opportunity to be part of a 3 month program “to develop their product or services and have access to investment and corporate partnerships”.27

TobaccoTactics Resources

Relevant links

TCRG Research


  1. Euromonitor International, Global Tobacco Key Findings Part 2: Vapour Products. August 2016 (behind paywall)
  2. abc”Japan Tobacco International, Reduced-risk products- our vaping products, JTI website, undated, accessed November 2019
  3. S. Peeters, A.B. Gilmore, How online sales and promotion of snus contravenes current European Union legislation,
  4. Japan Tobacco, Zerostyle Snus regular and Zerostyle Snus Mint to be added to the Zerostyle smokeless tobacco line, Media Release, JT website, 13 June 2013, accessed November 2019
  5. Nordic Snus, LinkedIn Profile,, undated, accessed November 2019
  6. Nordic Snus, LD Nordic Spirit, undated, accessed November 2019
  7. Japan Tobacco Inc., Annual Report 2018, JT website, accessed November 2019
  8. N. Miura et al, Pharmacokinetic analysis of nicotine when using non-combustion inhaler type of tobacco product in Japanese adult male smokers, Regulatory Toxicology and Pharmacology, 2013, 67:2
  9. Japan Tobacco, JT to Launch New Style of Smokeless Tobacco Product “Zerostyle Mint”, Media Release, JT website, 17 March 2010, accessed November 2019
  10. Japan Tobacco International, Innovative partnership for Ploom and Japan Tobacco International . JTI to take minority share in Ploom, Press Release, JTI website, 8 December 2011, accessed November 2019
  11. B. Stone, Ploom’s E-Cigarettes and Vaporizers Use Real Tobacco, Bloomberg News, 21 November 2013, accessed November 2019
  12. Japan Tobacco, Four flavors and aromas to select from in the popular Zerostyle brand line of smokeless tobacco, Media Release, JT website, 3 October 2013, accessed November 2019
  13. Japan Tobacco International, JTI acquires ‘ploom’ intellectual property rights from Ploom, Inc, Press Release, JTI website, 16 February 2015, accessed November 2019
  14. N. Minami, Japan Tobacco, JT Group 2018 Third Quarter Investor Conference Presentation, JT Group website, 31 October 2018, accessed November 2019
  15. abJapan Tobacco, JT launches Two New Tobacco Vapor products under its Ploom brand, Press Release, JTI website, 17 January 2019, accessed November 2019
  16. World Health Organization, Heat-Not-Burn tobacco products information sheet, WHO website, 2019, accessed November 2019
  17. Philip Morris International, Our tobacco heating system IQOS, PMI website, undated, accessed November 2019
  18. British American Tobacco, Tobacco heating products, BAT website, undated, accessed November 2019
  19. Japan Tobacco, JT launches a new flavor of tobacco sticks for Ploom S: “MEVIUS Menthol Purple for Ploom S”, JT press release, 6 December 2019, accessed February 2020
  20. Japan Tobacco, JT launches two new tobacco stick products for Ploom S: Camel Regular and Camel Menthol, Press Wire, 6 December 2019, accessed February 2020
  21. Euromonitor International, Japan Tobacco Inc in Tobacco (World). Global company profile. 23 August 2018 (behind paywall)
  22. T. Uranaka, Japan Tobacco ratchets up smokeless war with new product, Reuters, 17 January 2019, accessed November 2019
  23. D. Hedley, Battle of the Heat-Not-Burn Giants – PMI and JT Face Up in Japan, Euromonitor International, Opinion, 8 April 2016 (behind paywall)
  24. N. Minami, JT Group 2019 Third-Quarter Results, Japan Tobacco Group, 2019, accessed November 2019
  25. abJapan Tobacco, JT’s Ploom S to be affordably priced at 3,480 yen from December 1, 2019, Media Release, 12 November 2019, accessed November 2019
  26. ”Japan Tobacco International, Our views: Building a brighter future, JTI website, undated, accessed November 2019
  27. abJapan Tobacco International, JTI partners with Plug and Play to launch Vapetech incubator, Media Release, JTI website, 7 March 2019, accessed November 2019