China Heated Tobacco Products Market Overview, 2030

China’s Heated Tobacco Products market is undergoing a strategic shift from a largely underground grey market to a regulated, state-supervised industry. Until 2021, Heated Tobacco Products were not legally authorized for sale in China, and devices such as IQOS and consumables like HEETS entered the country informally through cross-border e-commerce and overseas personal imports. Despite these restrictions, demand for Heated Tobacco Products steadily grew among affluent, urban adult smokers seeking reduced-harm alternatives to combustible cigarettes. This interest coincided with increasing awareness of international trends and dissatisfaction with traditional smoking methods. In 2022, the State Tobacco Monopoly Administration (STMA) and China’s State Administration for Market Regulation issued new standards and regulations that effectively legalized Heated Tobacco Products under the control of the China National Tobacco Corporation (CNTC). This brought the market under formal regulatory supervision, enabling local R&D and domestic manufacturing. Since then, CNTC has introduced its own Heated Tobacco Products, such as the “Kung Fu” and “MC” series, which are now being trailed in select cities like Beijing, Shanghai, and Guangzhou. Unlike Western markets where multinational companies dominate, China’s domestic players are central to the evolution of this category. Product rollout is cautious and regionally staged, reflecting both state control and market testing. Consumer response has been strong in tier-one cities where smokers are more open to innovation and where disposable income supports premium pricing. The Chinese market's long-term potential is significant due to its vast smoking population and state capacity for centralized scaling.

According to the research report ""China Heated Tobacco Products Market Overview, 2030,"" published by Bonafide Research, the China Heated Tobacco Products market is anticipated to grow at more than 36.11% CAGR from 2025 to 2030.China’s regulatory framework for Heated Tobacco Products is distinctively state-directed, overseen by the State Tobacco Monopoly Administration (STMA) and tightly integrated into the operations of the China National Tobacco Corporation (CNTC), the world’s largest tobacco producer. Prior to 2022, Heated Tobacco Products existed in a legal grey area, imported unofficially and sold through cross-border e-commerce without domestic licensing. This changed with the introduction of national standards for Heated Tobacco Products, including GB41700-2022, which came into force in October 2022. These standards formalized the manufacturing, testing, and sales of heated tobacco sticks and devices, placing the category fully under state regulation. All manufacturers must now register their products with STMA and comply with rigorous product safety, emissions, and packaging standards. Foreign brands, including IQOS by Philip Morris International, have not been granted national distribution rights, although they maintain a small presence through duty-free channels. Advertising is strictly prohibited under tobacco law, and even informational campaigns are limited to in-store communication. Retail distribution is restricted to licensed tobacco shops operating under CNTC’s regional branches. The competitive landscape is centralized, with no private-sector participation allowed in sales or marketing. Product development is largely driven by state-owned research institutes and CNTC-affiliated entities. While the market remains closed to multinational entrants, it is poised for expansion through state-controlled scaling, with clear prioritization of domestic technology and intellectual property. As regulatory clarity improves and supply chains mature under STMA guidance, China is expected to emerge as a self-contained, vertically integrated Heated Tobacco Products market distinct from Western commercial models.

China’s Heated Tobacco Products market is structured around a fully domestic, state-regulated product ecosystem, with all components tobacco sticks, heating devices, and tobacco inputs produced and distributed under the oversight of the China National Tobacco Corporation (CNTC). Tobacco sticks, often referred to locally as heat stick sare produced in several variants, typically un-flavored or menthol, and are the central consumable unit in the system. These sticks are manufactured by CNTC-approved facilities and adhere to the national GB41700-2022 standards governing emissions, tobacco content, and material safety. Early stick products include those branded under CNTC’s emerging heated tobacco lines like “Kung Fu” and “MC,” launched in pilot cities such as Shenzhen, Hangzhou, and Chengdu. Leaf tobacco used in the production of these sticks is domestically sourced from CNTC’s vertically integrated tobacco supply chain, which controls over 95% of China's raw tobacco production. There is no involvement from international leaf suppliers, and the state ensures strict quality control and traceability from field to finished product. Capsules and cartridges, commonly used in open or hybrid systems abroad, are not permitted in China’s regulatory model, as only closed-system; tamper-proof devices are allowed. Heated Tobacco Devices are developed by CNTC-affiliated research institutes and manufacturing arms, with initial models featuring blade and induction-based heating. These devices are designed for compatibility only with CNTC-produced sticks, ensuring control over the entire product lifecycle. Device distribution is limited to licensed retail outlets, with pricing and technical specifications standardized by the state. There are no privately developed or third-party devices on the market. The integration of stick production, device technology, and raw tobacco supply under CNTC’s centralized model ensures consistency, compliance, and control core principles of China’s state-run Heated Tobacco Products strategy.

Distribution of Heated Tobacco Products in China operates exclusively through state-sanctioned offline retail channels, under the strict control of the China National Tobacco Corporation (CNTC) and its provincial branches. Sales are permitted only through licensed tobacco retail outlets, including state-owned tobacco shops and specialized counters within authorized convenience stores. Currently, most distribution is limited to selected pilot cities such as Shenzhen, Hangzhou, and Chengdu, where CNTC is gradually testing product rollout. Store-level availability is managed regionally, with no private-sector involvement in distribution, importation, or retailing. Staff at these points of sale is trained to provide technical information about devices and stick usage, reflecting the government’s goal of promoting these products to adult smokers under controlled education and monitoring. Online sales are not permitted for Heated Tobacco Products in China, reflecting the government's broader e-commerce restrictions on tobacco and nicotine delivery systems. Attempts to sell these products via online marketplaces or cross-border platforms have been curtailed by regulatory enforcement and customs controls. Consumers seeking information online are directed to official CNTC websites or informational platforms hosted by state agencies, but no direct e-commerce capabilities exist. This exclusion of online retail is part of a broader policy to prevent unauthorized access, especially by minors, and to maintain oversight of consumer interactions. The state’s offline-only approach allows for tight control over product rollout, demand management, and age-restricted access. While this model limits convenience and rural accessibility, it supports the centralized nature of China’s tobacco governance. As the national Heated Tobacco Products strategy matures, distribution will likely expand geographically but remain confined to regulated physical retail aligned with STMA and CNTC policy objectives. Show more