UK Heated Tobacco Market Snapshot - 2025

The UK heated tobacco market continues to evolve rapidly, with growing consumer interest and an increasingly competitive landscape. As of January 2025, the market remains dominated by major tobacco companies while regulatory changes and evolving consumer preferences shape the landscape.

Market Overview

The heated tobacco category in the UK is relatively small compared to other nicotine products like vaping, but it is experiencing steady growth. The UK’s market size value is expected to reach £448 million by 2025, representing a 5% increase compared to 2024. However, the market remains small compared to the UK’s 5.5 million adult vapers, which is over ten times the number of heated tobacco users.

Key Players

The market is primarily led by established companies with multiple years of experience in the UK market. Premium-priced options are available alongside more affordable alternatives aimed at expanding consumer choices. Recent launches of herbal heated consumable products aim to cater to the demand for non-tobacco options, particularly those influenced by regulatory changes in the EU.

Regulatory Landscape

The regulatory environment for heated tobacco products in the UK is stringent but less restrictive compared to combustible cigarettes. Heated tobacco products are currently subject to specific regulations around advertising, packaging, and health warnings. However, ongoing regulatory reviews may impact future marketing practices.

Consumer Trends

The 343,000 heated tobacco users in the UK represent a usage rate of 0.6% of adults (18+). The popularity of these products has been increasing, with the proportion of smokers using heated tobacco doubling from 1.5% to over 3% between 2021 and 2024. The coming ban on disposable e-cigarettes could further drive growth in the heated tobacco category as consumers seek alternatives.

In terms of flavour availability, there are nearly 40 different consumable flavours available as of the fourth quarter of 2024, with over half being cooling and fruit-flavoured sticks. However, tobacco flavours remain the most popular among consumers.

Market Challenges

Despite the growth, the heated tobacco market in the UK faces challenges. High device costs, limited product availability compared to e-cigarettes, and consumer education remain significant hurdles. Additionally, public perception and ongoing debates around the health impacts of heated tobacco continue to influence the market.

Future Outlook

The UK heated tobacco market is expected to continue its steady growth trajectory, driven by product innovations, new flavour offerings, and strategic marketing efforts. The introduction of more affordable alternatives aimed at broadening the consumer base could be a key factor in expanding the market.

Conclusion

The heated tobacco market in the UK is evolving but remains a niche category compared to vaping. However, with increasing consumer interest and strategic efforts by major players, it is poised for gradual expansion. Staying informed about regulatory updates and market trends will be critical for stakeholders looking to navigate this developing sector.