The production of Japanese cigarette Ploom X aims to expand to more than 40 countries worldwide and surpass the sales of traditional tobacco by 2026. In addition, it plans to invest 450 billion yen in its low-risk product business from 2024 to 2026.
Japan Tobacco plans to expand Ploom X production in the Philippines
According to the Manila Bulletin on December 7. Japan Cigarette (JT) Toshitoshi Shige, head of the Kansai plant (Tatsuya Shiga) recently visited the company at the Philippine plant.
After visiting the Kansai plant in Kyoto, the head noted that the Malval plant in Batangas province in the Philippines produces traditional tobacco. Compared to the Kansai plant, the plant is relatively new and equipped with modern equipment.
The Kansai plant reportedly produces not only combustible tobacco but also 18 alternatives to Ploom X. Making it the only one of Japan’s three commodity factories to manufacture heated cigarettes for the Chinese market. When asked about the possibility of manufacturing Ploom bombs in the Philippines in the future, the chief said that this could be considered if Ploom sales in the Philippines were large enough.
Investing $3 billion in developing low-risk products in the future
John Freda, General Manager of JTI in the Philippines, said the introduction of Ploom is another important milestone in the expansion of the Philippine market. It is the first company outside of Japan to launch the brand in Asia, reflecting the company’s commitment to continue expanding its market.
Currently, JTI Philippines sells Ploom XAdvanced devices in some retail stores and online in the Metro Manila area.
Erika Viveiros, JTI Philippines Marketing Director (Erika Viveiros), said the launch of Ploom XAdvanced is aimed at meeting the expanding demand for heated cigarette products in the country.
JT said that despite the continued decline in sales of traditional tobacco. The annual growth rate of heated cigarette products and low-risk commodities (RRP) is expected to remain at around 8% from 2022 to 2035. From 2024 to 2026, about 450 billion yen ($3 billion) will be invested in low-risk commodities. (RRP) in particular due to the development of Ploom to further expand its market and promote the development of the heated cigarette business.
JT’s goal is to launch Ploom X on the global market by 2026, and the market reach has expanded to more than 40 countries, including the Philippines. JT does not plan to manufacture the Ploom X anywhere other than Japan and Poland, the company said. According to JT’s medium-term growth forecast, heated cigarette products like X, like Ploom, will outsell traditional cigarettes by 2035.
Although JTI Philippines did not disclose their local sales targets for Ploom’s Vision X, they said that last month’s product launch reflected their determination to “remain committed to growing the business in the Philippines for the long term.”
