What if the last smoker quits?
The “tobacco scare” or the rising fear around tobacco products is associated with two prime factors. The first being our ever-changing lifestyles; the second being the more obvious reason, the risks to health associated with consuming tobacco products. Furthermore, legal restrictions on promotions and activations of the product combined with autocratic pricing by the respective Governments are a barrier to sales. Price has always been a deciding factor for consumers. Increases in prices have shown an inverse relation with sales and hence the declining number of product users.
The first step in revolutionizing the industry
The growing concern around and awareness of the adverse health effects of using tobacco products in both consumers and society, while tending to the declining popularity was a dilemma that could have most easily taken the industry backward. Yet, their “around-the-problem” approach led them to question, “an we give alternate choices to smokers for potentially reduced-risk products?”. This approach has been the cornerstone of the tobacco industry’s evolution in this past decade. With the introduction of alternatives such as Vapes, Tobacco Heating Products and Modern Oral Products, the tobacco industry changed the game of tobacco consumption via innovation.
What if the last smoker quits?
The “tobacco scare” or the rising fear around tobacco products is associated with two prime factors. The first being our ever-changing lifestyles; the second being the more obvious reason, the risks to health associated with consuming tobacco products. Furthermore, legal restrictions on promotions and activations of the product combined with autocratic pricing by the respective Governments are a barrier to sales. Price has always been a deciding factor for consumers. Increases in prices have shown an inverse relation with sales and hence the declining number of product users.
The first step in revolutionizing the industry
The growing concern around and awareness of the adverse health effects of using tobacco products in both consumers and society, while tending to the declining popularity was a dilemma that could have most easily taken the industry backward. Yet, their “around-the-problem” approach led them to question, “an we give alternate choices to smokers for potentially reduced-risk products?”. This approach has been the cornerstone of the tobacco industry’s evolution in this past decade. With the introduction of alternatives such as Vapes, Tobacco Heating Products and Modern Oral Products, the tobacco industry changed the game of tobacco consumption via innovation.
How is it faring?
Tobacco companies that focus on the NGPs (Next Generation Products) have so far come up with broadly three types of products:
- E-cigarettes use batteries and liquid (nicotine / non-nicotine) with different types in the market, the latest include the pods feature. Liquid pods are commonly available at many stores and are easily replaceable by consumers. Juul is an example of such technology.
- A tobacco heating product (THP) is a device that heats the stick and allows users to take the nicotine without actually burning the cigarette. PMI is the dominant market holder with their “IQOS”.
- NGPs, the more popular Modern Oral category product, are small nicotine pouches, placed between gum and teeth (NOT to be Chewed). In Pakistan, we may associate this with the name “Velo”
E-cigarettes and THPs have been in the global market for some time now, with noticeable penetration in developed countries such as Japan and the USA. Developing countries are not far behind, as consumers opt for imported products. Modern Oral is still new to many markets, but companies that delicately focus on reducing dependence on traditional FMC while offering potentially reduced risks are bracing for success.
In Pakistan, one of the reasons why Modern Oral has been able to gather such an audience is credit to the consistency showcased by the brands in making it a success based on data-driven decisions. Data generated from different consumer surveys has helped the brand to alter the product by seeing the needs of consumers. Be it pricing, packaging or the product experience by early adopters, the data received from consumer surveys has significantly contributed to improving and expanding the foothold in this new category. However, the landscape of tobacco industry is changing at a super-fast rate, and if you need to know more about the latest trends in tobacco industry, feel free to speak with us and reach out to us at info.pakistan@1oula.com
How is it faring?
Tobacco companies that focus on the NGPs (Next Generation Products) have so far come up with broadly three types of products:
- E-cigarettes use batteries and liquid (nicotine / non-nicotine) with different types in the market, the latest include the pods feature. Liquid pods are commonly available at many stores and are easily replaceable by consumers. Juul is an example of such technology.
- A tobacco heating product (THP) is a device that heats the stick and allows users to take the nicotine without actually burning the cigarette. PMI is the dominant market holder with their “IQOS”.
- NGPs, the more popular Modern Oral category product, are small nicotine pouches, placed between gum and teeth (NOT to be Chewed). In Pakistan, we may associate this with the name “Velo”
E-cigarettes and THPs have been in the global market for some time now, with noticeable penetration in developed countries such as Japan and the USA. Developing countries are not far behind, as consumers opt for imported products. Modern Oral is still new to many markets, but companies that delicately focus on reducing dependence on traditional FMC while offering potentially reduced risks are bracing for success.
In Pakistan, one of the reasons why Modern Oral has been able to gather such an audience is credit to the consistency showcased by the brands in making it a success based on data-driven decisions. Data generated from different consumer surveys has helped the brand to alter the product by seeing the needs of consumers. Be it pricing, packaging or the product experience by early adopters, the data received from consumer surveys has significantly contributed to improving and expanding the foothold in this new category. However, the landscape of tobacco industry is changing at a super-fast rate, and if you need to know more about the latest trends in tobacco industry, feel free to speak with us and reach out to us at info.pakistan@1oula.com