Synthetic Nicotine and Dual Forces: Regulation and Innovation

South Korea’s e-cigarette market is undergoing significant transformation, driven by the dual forces of regulatory changes and the demand for innovative products. According to Sam Kim, CEO of Connected Korea, “The South Korean tobacco market was valued at $11.3 billion in 2023 and is largely segmented into Traditional Cigarettes (73.1%), Heated Not Burn (HNB) (19.0%), Open Pod E-Cigarettes (4.9%), and Closed Pod E-Cigarettes (Disposable, CSV) (2.5%).”

While traditional cigarettes dominate, novel tobacco products, particularly heated tobacco, have gained significant traction. “The decline in Traditional Cigarette sales in 2022 also shows that many consumers have started switching from Traditional Cigarettes to Heat not Burn (HNB) or Electronic cigarettes,” Kim noted.

Open-system e-cigarettes, though introduced later than heated tobacco products, are also experiencing rapid growth. “Open Pod System (e-liquids), which was introduced later than Heated Not Burn (HNB) products in Korea, is gaining popularity among young consumers due to its diverse flavors and products with ‘less Smell’ & ‘less harmful’, while still maintaining the benefits of HNB. As a result, the annual growth rate in this category is expected to be high.”

The growth of open-system e-cigarettes has also driven the development of local e-liquid companies. Products tailored to consumer preferences, such as Connected Korea’s HYPERMIX and SEOUL JUICE, have played a significant role in expanding the market.