South Korea's Big Three Split on Nicotine Strategy — and Pouches Aren't Part of Any Plan
KT&G, Philip Morris Korea, and BAT Korea are all doubling down on heated tobacco and vapes. None are publicly betting on nicotine pouches in a market where the category barely exists.
South Korea's three largest tobacco companies are taking sharply different approaches to reduced-risk products, and the one thing they have in common is this: none of them are talking about nicotine pouches.
KT&G is focusing on premium products, Philip Morris Korea is expanding into liquid e-cigarettes, and British American Tobacco Korea is strengthening its heated-tobacco lineup, per Tobacco Reporter. The divergence reflects a market where heated tobacco dominates the alternatives category and oral nicotine pouches remain virtually nonexistent.
What Each Company Is Doing
KT&G, South Korea's domestic tobacco giant, is moving upmarket with premium offerings. The company has not disclosed specific product launches tied to this strategy.
Philip Morris Korea is expanding beyond its IQOS heated-tobacco system into liquid vaping devices — a category it has historically avoided in most markets. The move suggests PM sees room to grow in Korea's vape segment, which remains smaller than heated tobacco but has a younger user base.
BAT Korea is reinforcing its glo heated-tobacco platform, which competes directly with IQOS. BAT has not announced plans to introduce VELO nicotine pouches — its flagship oral product in the U.S. and Europe — to the Korean market.
Why Pouches Are Absent
South Korea's nicotine pouch market is nearly nonexistent. The category has no regulatory pathway, no major retail presence, and no brand awareness outside niche importers. Heated tobacco, by contrast, accounts for roughly 15-18% of the country's total tobacco market, one of the highest penetration rates globally.
For companies like BAT and Philip Morris, which sell pouches aggressively in Scandinavia and the U.S., the Korean silence is notable. It suggests they see no near-term regulatory or consumer opening.
What's Next
Korea's Ministry of Food and Drug Safety has not signaled any intent to create a legal framework for nicotine pouches. Until that changes, the country's alternatives battle will remain a two-horse race between heated tobacco and vapes — and the pouch category will stay off the board.
SOURCES:
Tobacco Reporter – South Korea's Tobacco Companies Take Different Strategies on Alternatives