The world loves to smoke. At the global level, the number of smokers continues to rise, propelled by the launch of new products including flavored tobacco products and alternative smoking methods like e-cigarettes and heat-not-burn products. With a market size of $932.11 billion in 2020 and an expected CAGR of 1.8% from 2021 to 2028, the tobacco industry is set to be a hotspot for dealmaking and expansion over the coming years. Driving that rise is a shift away from traditional tobacco products to electronic cigarettes and other alternative smoking devices like heat-not-burn (HNB), which have continued to rise in popularity in recent years. Companies like PODA Lifestyle and Wellness Ltd. (CSE:PODA) (FSE: 99L), Philip Morris International Inc. (NYSE:PM), Altria Group, Inc. (NYSE:MO), RLX Technology (NYSE:RLX), and TAAT Global Alternatives (CSE:TAAT) (OTCQX:TOBAF) are leading the charge in bringing the massive tobacco market new ways to enjoy smoking, without the smoke, smell, or tobacco.
PODA Expands Its Distribution Into Two Massive Smoking Markets
PODA Lifestyle and Wellness (CSE:PODA) (FSE: 99L) is changing the smoking industry with its proprietary Beyond Burn Poda Pods which use a tobacco-free blend of pelletized tea leaves infused with synthetic nicotine. These tobacco-free Beyond Burn™ Poda Pods allow users to enjoy the experience of traditional cigarettes without the smoke, smell or tobacco. As traditional cigarette sales continue to decline every single year, companies like PODA Lifestyle and Wellness are poised to fill the gaps with alternatives in the heat-not-burn space, including their Beyond Burn™ Poda Pods.
PODA Pods fit perfectly with the new market demands being placed on the heat-not-burn (HNB) industry, which reached $9.36 billion in 2020 and is expected to more than double by 2024. The company is capitalizing on a rapidly growing market and a growth in regulatory approval in major markets like the US, China, and Europe for heat-not-burn devices. At present, Poda Lifestyle’s HNB system is fully patented in Canada and has patents pending in 65 additional countries, covering more than 70% of the global population.
In June 2021, PODA Lifestyle and Wellness (CSE: PODA) (FSE: 99L) hit a major milestone in its expansion strategy after announcing a new partnership with Big Tobacco company ESON Technology Co. Ltd. The joint development agreement will give PODA access to ESON’s existing distribution network in Europe and Asia, where ESON’s patented proprietary blend of tobacco-free products is currently selling over 50 million units per month.
“We are incredibly excited to partner with ESON, who is recognized as one of the leading manufacturers of electronic cigarette devices, and more recently as one of the global leaders in tobacco-free heat-not-burn products,” said PODA CEO Ryan Selby. “Daniel Chen and his team at ESON are currently filling and distributing millions of NEAFS products per month into the Chinese market, providing us with tremendous opportunities to scale. There are over 400 million adult smokers in China, and we believe that this partnership with ESON will provide us with a fast-track opportunity to rapidly develop our market share in the Chinese market,”
An Industry Driving the Change, Not Being Driven to Change
Tobacco giant Philip Morris International Inc. (NYSE:PM) is transitioning into the alternative smoking market with its IQOS devices, one of the most popular on the market and responsible for bringing millions of users onto the HNB train. In March, Philip Morris (NYSE:PM) introduced the IQOS 3 device for sale in all current markets, bringing a longer battery life and faster recharging time to the field. The company’s strategy of branding its heat sticks with classic tobacco brands such as Marlboro HeatSticks is strengthening this giant’s market penetration.
Altria Group, Inc. (NYSE:MO) is helping bring the IQOS product to the world and expand the tobacco industry’s mission of bringing more smoking alternatives to this massive market. 2021 is set to be a big year for Altria with the company announcing its 2021 full-year guidance with an adjusted diluted EPS between $4.49 to $4.62, a growth rate of 3-6% from 2020’s EPS base on $4.36.
RLX Technology (NYSE:RLX), a leading branded e-vapor company in China, announced Q1 2021 results with net revenues sitting at $366.1 million, up 48.2% from the fourth quarter of 2020. The company also published its first ESG Report, as an increasing number of investors put environmental, social, and governmental (ESG) principles at the forefront of their business strategies.
TAAT Global Alternatives (CSE:TAAT) (OTCQX:TOBAF) is pressing its advantage in the UK Market with a new purchase order from a wholesaler in London, making the buyer the exclusive distributor of TAAT in the United Kingdom and Ireland. The company was also a sponsor for world champion boxer Floyd Mayweather in his highly anticipated boxing match against YouTuber Logan Paul. The company’s placement as a high-profile sponsor for Mayweather and his ringside entourage was a positive signal for both the company and the market.
Smoking Is Heating Up Fast Thanks to Heat-Not-Burn (HNB)
As the heat-not-burn market continues to heat up, and big tobacco companies pour investment
funds into the space, companies like PODA Lifestyle are positioned well in a massive market of smokers that desperately needs alternatives. With patented and revolutionary technology, PODA is bringing the heat-not-burn industry into the future.
For more information about PODA Lifestyle (CSE:PODA) (FSE: 99L), click here.
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