KT&G CEO Bang Kyung-man is accelerating efforts to break into the Japanese market with the launch of its next-generation e-cigarette, the lil Hybrid 3.0, through a global partnership with Philip Morris International (PMI).
KT&G plans to compete directly with global e-cigarette manufacturers in Japan and offer consumers a broader range of options through continued collaboration with PMI.
According to Philip Morris on the 21st, the lil Hybrid 3.0 is now available across Japan. Sales channels include the official IQOS online store, IQOS retail outlets nationwide, and convenience stores.
The lil Hybrid 3.0 is an upgraded version of the lil Hybrid 2.0, which was released in 2020. As a third-generation model, it features enhanced performance and design aimed at improving user satisfaction.
The company explained that the device supports multiple modes: a “Standard Mode” with performance similar to the previous model, a “Classic Mode” with higher heating temperature, and a “Casual Mode” with a shortened 10-second preheating time.
Japan is known as the world’s largest consumer of heat-not-burn tobacco products. Its e-cigarette market has grown rapidly in recent years amid fierce competition among global manufacturers and is expected to continue expanding.
Major products include PMI’s IQOS, Japan Tobacco’s Ploom TECH, and British American Tobacco’s glo, with IQOS currently holding over 90% market share.
Partnering with PMI is seen as a strategy to leverage its strong distribution network and brand power in Japan and globally.
This approach offers a more stable market entry than going solo. Japan marks KT&G’s third overseas launch, following Russia and Ukraine.
In 2023, KT&G signed a 15-year long-term supply agreement with PMI. Under the deal, KT&G will supply lil e-cigarettes to PMI until the end of January 2038, and PMI will sell them in all global markets except South Korea. This is expected to further accelerate KT&G’s global expansion.
CEO Bang is expected to expand lil exports using PMI’s distribution network, with Japan serving as a key springboard. Sales in Japan are fully managed by PMI. The two companies are working together to expand into as many countries as possible.
KT&G stated, “We will continue to collaborate with Philip Morris to offer a wider range of choices to consumers in global markets.”
