The heat-not-burn (HNB) market could be big.
In fact, consider this.
One, heat-not-burn is the fastest growing category in the adult smoking industry. Two, HNB is a new way of consuming tobacco in which the tobacco isn’t burned, but rather is heated to precise temperatures to generate nicotine-containing aerosols without the smoke.
Three, Philip Morris International (NYSE:PM), for example, is leading the HNB market with its IQOS product, which sold about 85 billion HNB sticks in 2020.
Four, potentially fueling more upside, Philip Morris believes that HNB products can almost entirely replace traditional cigarettes within 20 years. Poda Lifestyle and Wellness Ltd. (CSE:PODA)(OTC:PODAF) is also well positioned to gain significant market share in the rapidly expanding global HNB market.
Other cigarette companies to keep an eye on include RLX Technology Inc. (NYSE:RLX), Universal Corporation (NYSE:UVV), and Vector Group Ltd. (NYSE:VGR).