International tobacco giants are accelerating their investment and layout in the new tobacco sector. BAT recently announced plans to invest a cumulative €500 million in its Trieste innovation hub by 2027, while adding 16 new production lines.
This strategic investment is expected to create approximately 2,700 jobs within five years and double the site's capacity compared to the initial targets of the industrial plan.
Simultaneously, the tobacco giant disclosed its supply chain localization strategy for Italy: about 80% of the equipment procured for its global factories comes from Italian companies, and over 80% of its Italian supplier base consists of small and medium-sized enterprises (SMEs) within the country, further strengthening its local industrial integration.
These moves are not only aimed at increasing capacity but also at meeting BAT's long-term strategic goal—to have its "non-combustible products" account for 50% of revenue by 2035. Currently, this share stands at about 18% at the group level but has already reached 45% in the Italian market.
Product innovation in the new tobacco sector for 2026 showcases characteristics of systematization, intelligence, and differentiation. The "Top 10 New Tobacco Product News of 2025" released by 2Firsts reveals three key trends.
Heated tobacco is shifting from a "fixed output" logic to a management logic that is "adjustable, controllable, and traceable." Japan Tobacco's Ploom AURA, equipped with four temperature settings and Bluetooth coordination technology, enhances user experience controllability.
Nicotine pouch products are moving beyond their positioning as mere "alternatives" and evolving into an independent oral consumer product category. Emerging designs like 0.1mm thin strips and bagless structures are creating new product distinctions. This trend toward category independence reflects manufacturers' technological iterations aimed at meeting the needs of segmented consumers.
In the e-cigarette sector, the focus of technological competition has shifted toward systemic capabilities. In 2025, features like 45W wide power range and stepless adjustment frequently appeared, signaling that the DTL (Direct-to-Lung) experience is moving from a niche market to a mass consumer-grade market.
This technological evolution requires the coordinated matching of systems such as the atomizer core, e-liquid supply, leak prevention, heat dissipation, and battery management, gradually turning performance parameters into the common language of the industry.
The rapid development of the new tobacco market is attracting increased attention and stricter controls from regulators worldwide. Several countries and regions introduced new regulatory measures in 2026, covering product definition, sales channels, and packaging labeling.
South Korea's revised "Tobacco Business Act," effective April 24, 2026, features a core change: it brings synthetic nicotine e-cigarettes under tobacco regulations for the first time. The new rules require such products to carry health warning graphics and text on packaging and prohibit online sales, social media promotion, and youth-targeted flavor marketing.
Vietnam's Ministry of Health is drafting a bill to strengthen control over new tobacco products by amending and supplementing the "Law on Prevention and Control of Tobacco Harms."
The draft bill proposes a comprehensive ban on the production, sale, advertising, display, and promotion of e-cigarettes and heated tobacco products. It also considers increasing the coverage of health warning graphics on tobacco packs from 50% to at least 85%.
The Austrian Parliament recently passed amendments to the tobacco excise tax and tobacco monopoly laws, bringing new tobacco products under the scope of the tobacco monopoly as well. The new regulations mean that nicotine pouches and e-liquids will only be permitted for sale under official licensing in the future.
The global new tobacco market in 2026 shows a trend of diversified development. At the recently concluded Dubai Tobacco Exhibition, various new products and technological innovations became the focus of industry attention.
Heated tobacco devices are undergoing technological upgrades, with more manufacturers introducing compact, modular designs. Products offer stable heating functions while improving coil durability and output power stability. Ceramic heating sheets or hybrid conduction-convection technologies are being adopted by more manufacturers.
Nicotine pouch products were the category with the fastest-growing number of exhibitors at the Dubai Tobacco Exhibition. A significant change in this category is the rise of customized nicotine pouch platforms targeting B2B buyers. Retailers can independently design products through large-scale production platforms, greatly increasing opportunities for private-label product launches.
Reusable e-cigarettes are developing strong momentum. Several manufacturers have introduced compact pod systems targeting adult consumers, signaling that these companies' main products are shifting from high-capacity disposable e-cigarettes to more durable reusable ones.
As a company focused on nicotine production, Teanhee Biotech closely follows the latest developments in the international new tobacco market.
From the perspective of the upstream supply chain, the industry is undergoing three major structural changes: the focus of innovation is shifting from simple feature addition to system-level experience; product compliance is becoming a core competitive threshold; and nicotine application forms are showing diversified development.
In the face of a constantly changing market environment and regulatory requirements, Teanhee Biotech will continue to invest in R&D to ensure we provide partners with high-quality nicotine products that meet international standards and national regulations. We recognize that in the pursuit of providing consumers with a better experience from new tobacco products, the quality and stability of nicotine, as a core ingredient, plays a fundamental role.
Teanhee Biotech firmly believes that only through continuous innovation and a commitment to quality can we maintain competitiveness in a rapidly changing market. We will continue to work closely with our partners to jointly promote the healthy development of the new tobacco industry and provide global consumers with more high-quality choices.
As ZYN product shipments in the Americas grew 38% year-on-year in Q3 2025 while traditional cigarette sales continue to decline, the battle for market share in the new tobacco sector has become more evident.
A U.S. FDA advisory panel has begun reviewing an application to position ZYN nicotine pouches as a lower-risk alternative to cigarettes. If approved, these products could claim that "switching from traditional cigarettes reduces the risk of diseases such as oral cancer and heart disease," further accelerating the market penetration of new tobacco products.
