HnB devices are battery operated smokeless alternatives to combustible cigarettes and work by heating sticks containing tobacco leaves. These refills which look like short cigarettes, must be inserted into the main device and are heated up once the latter is switched on.
The product has been introduced in South Korea only two years ago, and yet according to data released by the Ministry of Economy and Finance last December, 288 million packs of “cigarettes” were sold in November, of which 35 million packs, were HnB refills. This equated to an 11.3%, up from 7.3% the prior year.
HnB tax revenue totals 10.7 trillion
The December report had added that the cumulative sales of HnB refills had reached 295.5 million packs, with a 9.3 percent share in the tobacco market. Tax revenue from the manufacture and sale of all tobacco products in Korea, had totaled 10.7 trillion won ($9.5 billion), up 2.6% from the previous year and a whopping 63.9% from the same period in 2014 before the sale tax went up sharply.
Further data released by the government has indicated that HNB sales have stood at 92 million packs in the first quarter of this year, up a whopping 34% from a year earlier. This equates to an increase of 11.8 % as of end-March, from 2.2% two years ago.
Read Further: The Korea Bizwire