Japan Cigarette Market Research Report, 2028

The introduction of tobacco to Japan is believed to have occurred in the late 16th century, when Portuguese and Spanish traders arrived in Japan. Smoking became increasingly popular during the Edo period (17th to 19th centuries) and was associated with various social and cultural practices. Smoking has historically been associated with masculinity and has been depicted in Japanese literature, cinema, and art. Iconic characters in Japanese literature and film often smoked, further ingraining smoking into the cultural fabric. Japanese smokers often have their own rituals and preferences when it comes to smoking. Some prefer traditional methods like rolling their cigarettes, while others opt for filtered cigarettes. Lighting a cigarette can be seen as an act of mindfulness and relaxation for many Japanese smokers. The advertising of cigarettes in Japan has been relatively unrestricted compared to many Western countries. Cigarette ads have been featured in various media, including billboards and magazines. Cigarette packaging in Japan is often colorful and eye-catching, with distinctive branding and logos. While there are many domestic cigarette brands in Japan, international brands like Marlboro, Camel, and Winston are also readily available and popular among smokers. Smoking is still prevalent in traditional Japanese settings like izakayas (Japanese pubs) and yakiniku restaurants (where patrons grill their meat at the table). Some establishments cater specifically to smokers. In the past, smoking was integrated into work culture, with designated smoking breaks and smoking rooms in offices. However, this is changing as workplaces adopt stricter no-smoking policies. Historically, smoking has been more common among men in Japan. However, the gender gap in smoking rates has been narrowing, with an increasing number of women taking up smoking in recent years. According to the research report "Japan Cigarette Market Overview, 2028," published by Actual Research, the Japan Cigarette market was valued more than USD 20 Billion in 2022. Japan has an aging population, and older individuals are more likely to be long-term smokers. However, this demographic trend is gradually changing as younger generations are less likely to take up smoking. While not as popular as in some other countries, e-cigarettes and vaping products have a presence in Japan. These products face regulatory challenges, but some consumers have turned to them as alternatives to traditional cigarettes. The COVID-19 pandemic has heightened health concerns worldwide, including in Japan. There is evidence to suggest that smokers be more susceptible to severe respiratory illnesses, which has further motivated some individuals to quit smoking or reduce tobacco use. Japan has considered implementing plain packaging regulations, similar to those adopted in other countries. Plain packaging would involve standardized packaging without branding, logos, or distinctive colors, with the aim of reducing the appeal of tobacco products. HTPs are becoming increasingly popular in Japan, as they are seen as a less harmful alternative to cigarettes. HTPs heat tobacco leaves to a temperature below combustion, which produces an aerosol that contains nicotine but less harmful chemicals than cigarette smoke. While HTPs are the most popular alternative to cigarettes in Japan, e-cigarettes are also becoming more popular. E-cigarettes are electronic devices that heat a liquid to produce an aerosol that the user inhales. The liquid typically contains nicotine, but it does not contain tobacco leaves.

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Light cigarettes, also known as low-tar or low-nicotine cigarettes, are often perceived as a healthier alternative to regular cigarettes. This perception is driven by the belief that lower tar and nicotine levels reduce health risks associated with smoking. Health-conscious consumers choose light cigarettes for this reason. Japanese consumers have historically shown a preference for milder, lighter-tasting cigarettes. Light cigarettes are designed to provide a milder smoking experience with reduced harshness, which aligns with the taste preferences of many Japanese smokers. Tobacco companies often employ effective marketing strategies to promote light cigarettes as a better option for health-conscious consumers. Terms like "light," "mild," and "low-tar" are used to convey reduced harm, and these marketing efforts can influence consumer choices. Light cigarettes typically feature advanced filter technology designed to reduce the amount of tar and nicotine that reaches the smoker's lungs. These filters are intended to provide a smoother and milder smoking experience. Light cigarettes are often designed to produce less offensive odors, which can be appealing to smokers who wish to be discreet or considerate of others in their vicinity. In some markets, light cigarettes are priced competitively or even at a premium compared to regular cigarettes. Depending on pricing strategies, this can attract cost-conscious consumers. Hypermarkets and supermarkets are widely distributed across urban and rural areas in Japan, providing easy access to consumers. Their extensive operating hours, typically from early morning to late evening, ensure that customers can purchase cigarettes conveniently. Cigarette products are often strategically placed near checkout counters or in prominent display areas within hypermarkets and supermarkets. This high visibility increases the likelihood of impulse purchases and attracts smokers who not have planned to buy cigarettes. These stores typically offer a wide variety of cigarette brands, including popular domestic and international brands. Smokers can choose from a range of options, catering to their specific preferences in terms of flavor, strength, and packaging. Hypermarkets and supermarkets often compete on pricing, offering competitive deals, discounts, and promotions on cigarette products. This can attract price-sensitive consumers looking for cost-effective options. Some hypermarket and supermarket chains offer loyalty programs that reward customers for repeat purchases. These programs can incentivize smokers to choose a specific store for their cigarette purchases. These stores are often strategically located in high-traffic areas, such as shopping malls, commercial districts, and residential neighborhoods, ensuring a constant flow of potential customers. Considered in this report: • Geography: Japan • Historic year: 2017 • Base year: 2022 • Estimated year: 2023 • Forecast year: 2028

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Aspects covered in this report: • Japan Cigarette market Outlook with its value and forecast along with its segments • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation By Type • Light • Medium • Others By Distribution Channel • Speciality Store • Hypermarket/supermarket • Convenience Stores • Online • Others

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The approach of the report: This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and list out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, and annual reports of companies, analyzing the government-generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers into regional aspects, tier aspects, age groups, and gender. Once we have primary data with us we started verifying the details obtained from secondary sources. Intended audience: This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the Cigarette industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.