KT&G’s Lil Heated Tobacco Brand Reaches 47.4% Market Share in South Korea as Global Expansion Accelerates
According to South Korean media outlet UpKorea, Lil, the heated tobacco brand owned by South Korean tobacco company KT&G, continues to strengthen its position in the domestic heated tobacco market.
In the first quarter of 2026, Lil captured 47.4% of South Korea’s heated tobacco stick market, further expanding its market leadership.
As the heated tobacco sector continues to grow in South Korea, KT&G is accelerating its business expansion through product innovation, overseas market development, and technology research and development.
Company data shows that KT&G’s Next-Generation Product (NGP) business revenue reached 890.1 billion KRW (approximately US$650 million) in 2025, compared with 279.3 billion KRW in 2020.
The company has expanded Lil products into 34 countries and is strengthening global competitiveness through multiple device platforms and extensive intellectual property development.
Key Points
- KT&G’s Lil brand reached a 47.4% share of South Korea’s heated tobacco stick market in Q1 2026.
- South Korea’s heated tobacco product sales increased from 440 million packs in 2021 to 660 million packs in 2024.
- KT&G is expanding its NGP business through product upgrades, overseas markets, and technological innovation.
- KT&G’s NGP business generated 890.1 billion KRW in revenue in 2025.
- Lil products are now available in 34 countries worldwide.
- KT&G filed 4,694 NGP-related patent applications between 2022 and 2024.
Lil Strengthens Leadership in South Korea’s Heated Tobacco Market
July 22, 2026 — Lil continues to expand its presence in South Korea’s heated tobacco market, supported by KT&G’s focus on product development, technology investment, and distribution expansion.
According to UpKorea, Lil’s market share reached 47.4% in the first quarter of 2026, increasing by 1.4 percentage points compared with the same period a year earlier.
KT&G said Lil’s growth has been driven by several factors, including:
- Improved user experience;
- Expanded product portfolio;
- Stronger retail distribution channels;
- Continued device innovation.
The company believes these factors have helped Lil maintain its leading position in an increasingly competitive market.
South Korea’s Heated Tobacco Market Continues to Expand
The growth of Lil has occurred alongside the rapid expansion of South Korea’s heated tobacco sector.
Market data shows that heated tobacco product sales increased from:
- 440 million packs in 2021
- 660 million packs in 2024
This represents growth of approximately 50% over three years.
At the same time, overall tobacco sales volumes in South Korea have declined, while heated tobacco products have continued gaining market share.
In 2024, heated tobacco products accounted for 18.4% of total tobacco sales in South Korea.
KT&G stated that Lil became the leading heated tobacco brand in South Korea in the first quarter of 2022 and has maintained its market leadership since then.
NGP Business Becomes a Major Growth Engine for KT&G
The expansion of Lil is part of KT&G’s broader Next-Generation Product (NGP) strategy.
According to company data, KT&G’s NGP revenue reached:
- 890.1 billion KRW in 2025
- Compared with 279.3 billion KRW in 2020
Over five years, the business achieved an average annual growth rate of approximately 26%.
NGP products now represent a larger share of KT&G’s tobacco business, increasing from:
- 9% of tobacco revenue in 2020;
- 20% in 2025.
KT&G’s 2025 NGP revenue included:
- Domestic sales: 587.3 billion KRW
- Overseas sales: 302.8 billion KRW
The company said NGP products are transitioning from a supplementary category into a core growth business.
KT&G Builds Multi-Platform Strategy Around Lil Devices
Rather than relying on a single device model, KT&G has developed multiple product platforms under the Lil brand.
Current major platforms include:
- Lil Solid
- Lil Hybrid
- Lil Able
These platforms target different consumer preferences through different heating technologies and tobacco stick compatibility options.
KT&G continues improving:
- Device performance;
- Charging speed;
- Preheating time;
- Overall user experience.
The latest product, Lil Able 3.0, launched in 2026 and is being distributed through convenience store channels across South Korea.
R&D and Patent Development Support Global Competition
KT&G considers research and development a key foundation for competing in the global heated tobacco market.
Company data shows that between 2022 and 2024, KT&G submitted:
4,694 patent applications related to NGP technologies.
By the end of 2025, KT&G’s total registered intellectual property rights reached:
- 16,751 total patents and intellectual property rights
- 12,929 overseas intellectual property rights
Overseas intellectual property accounted for approximately 77% of the company’s total portfolio.
KT&G said that as global regulations become stricter, technological capabilities, product design, and intellectual property protection will become increasingly important for companies entering international markets.
Lil Expands Into 34 Overseas Markets
Beyond South Korea, KT&G is accelerating international expansion of the Lil brand.
The company reported that Lil products have entered 34 countries as of 2026.
KT&G views overseas heated tobacco markets as having significant growth potential compared with the more mature domestic market.
The company aims to compete internationally by combining:
- Experience from South Korea’s heated tobacco market;
- Technology development capabilities;
- Global partnerships;
- Product platform diversification.
The global heated tobacco market is currently led by Philip Morris International’s IQOS brand, but KT&G is seeking to increase its international presence through Lil.
Heated Tobacco Competition Moves Toward Technology and Global Platforms
As the traditional cigarette market continues to change, competition in the heated tobacco sector is shifting beyond individual product sales.
Future competition is expected to focus on:
- Research and development capabilities;
- Device ecosystems;
- User experience;
- Global distribution networks;
- Intellectual property advantages.
KT&G’s development strategy for Lil shows the company’s ambition to move from a leading South Korean heated tobacco brand toward a stronger global position in the smoke-free product sector.
For the industry, long-term success will depend not only on product popularity but also on technological innovation, supply chain strength, and the ability to build sustainable international markets.
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