BAT Japan Strengthens Oral Tobacco "VELO" Business with New Leadership and 25th Anniversary Milestone
BAT Japan has announced a new corporate structure to accelerate the expansion of its smokeless product portfolio, marking its 25th anniversary and the appointment of a new president. The company aims to drive growth by focusing on the oral tobacco brand "VELO" to meet evolving consumer needs and environmental changes in the Japanese market.
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- 📰 Published: March 28, 2026 at 01:19
- 🔍 Collected: March 28, 2026 at 21:59 (20h 40m after Published)
- 🤖 AI Analyzed: April 15, 2026 at 04:56 (414h 57m after Collected)
(BAT Japan President Mauricio Lara)
On March 26, 2026, British American Tobacco Japan (Headquarters: Minato-ku, Tokyo; President: Mauricio Lara; hereinafter "BAT Japan") announced that, in celebration of its 25th anniversary and the appointment of a new president, it will accelerate efforts to expand smokeless products in the Japanese market and strengthen its oral tobacco brand, "VELO," as a key priority area moving forward. The company aims to promote a multi-category strategy that responds to changing social environments and consumer needs, thereby contributing to the development of Japan's smokeless market.
The BAT Group has set a policy to derive the majority of its revenue from the smokeless business by 2035. BAT Japan is already a leading market where smokeless products account for over 50%[1] of its revenue, and it intends to drive growth for the entire group by capturing the rising domestic demand for smokeless products.
Rising Demand for Oral Tobacco Worldwide and in Japan
Oral tobacco is a smokeless product used by placing it between the gums and cheek. It produces no smoke, odor, or ash, and does not cause unwanted secondhand smoke. It features the convenience of being usable anytime and anywhere, as it does not require a device or charging and allows for hands-free use. Furthermore, as it does not involve combustion, it is considered to have very low levels of exposure to harmful substances[2].
The oral tobacco market is expanding rapidly worldwide. It is the fastest-growing category within the tobacco market[3], with the number of users expected to grow at a compound annual growth rate of 6-15% between 2025 and 2030[3]. In Sweden, the birthplace of oral tobacco, the usage rate has reached approximately three times that of cigarette smoking[4], and mortality rates for smoking-related diseases are the lowest in the EU[5].
The oral tobacco market in Japan is also steadily expanding, with the number of users estimated to have grown from approximately 300,000 in 2022 to approximately 900,000 in 2025[6]. It is projected that this figure could grow to a scale of 4 to 5 million by 2030[6].
Changing Smoking Environments and Consumer Needs in Japan Support VELO's Growth
VELO is the world's No. 1 oral tobacco brand[7]. As a brand originating in Sweden, it has expanded its reach to approximately 50 markets, showing a strong presence as the category leader in Europe[7] and the fastest-growing brand in the US[7]. In Japan, since its launch in 2020, annual sales volume has nearly doubled almost every year[8]. It has nationwide distribution channels, the highest number of flavors in the country, and offers mini-sized pouches tailored to Japanese preferences.
Currently in Japan, smoking environments have been decreasing since the 2020 revision of the Health Promotion Act. Social and environmental changes are progressing, such as increased friction between smokers and non-smokers in workplaces regarding smoking breaks and odors.
Against this backdrop, VELO is driving the growth of the oral tobacco category in Japan based on three consumer needs (3Cs): "Convenience" to use anytime, anywhere; "Consideration" for those around you and yourself; and "Conversion" ease due to accessible pricing.
Taking VELO Business to the Next Growth Phase by Creating Over 1 Million Trial Opportunities and Expanding Distribution and Flavors
Based on this market potential, BAT Japan will provide over 1 million opportunities for smokers to experience VELO in 2026. Additionally, the company will advance further expansion of sales channels and enhance flavors tailored to Japanese tastes.
Furthermore, under the campaign concept "REMIX that moment," the company will sequentially roll out initiatives in collaboration with diverse Japanese cultures such as music, art, and gaming to propose new ways to enjoy VELO. As the first step in 2026, starting with an immersive event in late April, the company will expand opportunities for smokers to experience VELO's usage characteristics and scenes in various moments of their daily lives.
Comment from BAT Japan President Mauricio Lara
"With the 25th anniversary and the inauguration of a new structure, our company has entered the next phase of growth. The adoption of smokeless products is expanding in Japan, and by further expanding the offering of the oral tobacco VELO in addition to the heated tobacco product glo™, we will provide Japanese smokers with more diverse and easier-to-use options."
[1] Based on BAT 2025 financial results.
[2] Based on research results targeting nicotine pouches within the oral tobacco category. Based on comparisons with smoke generated from a standard reference cigarette (tar approx. 9mg) regarding the average value of 9 harmful substances independently identified and prioritized as requiring reduction from cigarette smoke. This does not mean these products are free of risk or addictive.
[3] Estimates targeting nicotine pouches within the oral tobacco category. BAT internal estimates. Covers our 50 major markets. The legally defined "New Categories" include users of duty-free products and open-system vape products. For users of new category products, it is assumed that 25% will use multiple products (poly-use) by 2030.
- Poly-use including cigarettes: Refers to adult^ consumers who use cigarette products in combination with tobacco/nicotine products*† that have potential for risk reduction. For many smokers, this is part of a transition period, aiming for complete switching by reducing cigarette consumption while replacing them with one or more potentially risk-reduced products*†.
- Poly-use in new category products: Refers to adult^ consumers who do not use cigarettes at all and use two or more categories of tobacco or nicotine products with potential for risk reduction in combination.
- Total poly-use: Refers to the total number of adult^ consumers who use two or more tobacco and/or nicotine products, regardless of whether cigarettes are included.
^ "Adult" refers to persons who have reached the age defined by relevant laws and regulations in each country/region. However, in no case does it include persons under 18, and in the US, it does not include persons under 21.
* Assuming complete switching from cigarettes, compared and evaluated comprehensively based on various research results. This does not mean these products are free of risk or addictive. † Products sold in the US (Vuse, Velo, Grizzly, Kodiak, Camel Snus, etc.) are subject to FDA (US Food and Drug Administration) regulations, and risk reduction claims are not made without official approval.
[4] Source: Statistics Sweden, Target age: 16-84 or 16+. The Public Health Agency of Sweden, "Use of tobacco and nicotine products by age, gender, and year (Self-reported percentage)" (Accessed: November 11, 2024) https://www.folkhalsomyndigheten.se/the-public-health-agency-of-sweden/living-conditions-and-lifestyle/andtg/tobacco/use-of-tobacco-and-nicotine-products/
[5] Source: World Health Organization (WHO) and International Agency for Research on Cancer (IARC), "Cancer Today: Data visualization tool for global cancer burden in 2022" (Selection criteria: age-standardized rate [world standard] per 100,000 population, incidence rate, male and female combined, cancer type: lip and oral cavity, European Union [27 countries], age range: 15-85+). (Accessed: August 8, 2024) https://gco.iarc.who.int/today/
[6] BAT Japan research.
[7] BAT research. From Q4 2025 onwards, based on sales volume. Growth rates for 2025 are based on comparisons with 2024 unless otherwise noted. Sales volume share refers to the proportion of consumer purchase volume of a specific brand (or combination of brands) out of the estimated purchase volume of the entire nicotine pouch sub-category. Sales volume share (by company) is based on share data held by the BAT Group. Unless a specific market is specified, sales volume share is based on our major markets. Major nicotine pouch markets: USA (Circana Non‑Syndicated RSD), Sweden (NielsenIQ), Denmark (NielsenIQ), Norway (NielsenIQ), Switzerland (IMS), UK (NielsenIQ), Poland (NielsenIQ). These 7 markets account for approximately 90% of the total revenue of the nicotine pouch industry in 2024.
[8] BAT Japan research.
On March 26, 2026, British American Tobacco Japan (Headquarters: Minato-ku, Tokyo; President: Mauricio Lara; hereinafter "BAT Japan") announced that, in celebration of its 25th anniversary and the appointment of a new president, it will accelerate efforts to expand smokeless products in the Japanese market and strengthen its oral tobacco brand, "VELO," as a key priority area moving forward. The company aims to promote a multi-category strategy that responds to changing social environments and consumer needs, thereby contributing to the development of Japan's smokeless market.
The BAT Group has set a policy to derive the majority of its revenue from the smokeless business by 2035. BAT Japan is already a leading market where smokeless products account for over 50%[1] of its revenue, and it intends to drive growth for the entire group by capturing the rising domestic demand for smokeless products.
Rising Demand for Oral Tobacco Worldwide and in Japan
Oral tobacco is a smokeless product used by placing it between the gums and cheek. It produces no smoke, odor, or ash, and does not cause unwanted secondhand smoke. It features the convenience of being usable anytime and anywhere, as it does not require a device or charging and allows for hands-free use. Furthermore, as it does not involve combustion, it is considered to have very low levels of exposure to harmful substances[2].
The oral tobacco market is expanding rapidly worldwide. It is the fastest-growing category within the tobacco market[3], with the number of users expected to grow at a compound annual growth rate of 6-15% between 2025 and 2030[3]. In Sweden, the birthplace of oral tobacco, the usage rate has reached approximately three times that of cigarette smoking[4], and mortality rates for smoking-related diseases are the lowest in the EU[5].
The oral tobacco market in Japan is also steadily expanding, with the number of users estimated to have grown from approximately 300,000 in 2022 to approximately 900,000 in 2025[6]. It is projected that this figure could grow to a scale of 4 to 5 million by 2030[6].
Changing Smoking Environments and Consumer Needs in Japan Support VELO's Growth
VELO is the world's No. 1 oral tobacco brand[7]. As a brand originating in Sweden, it has expanded its reach to approximately 50 markets, showing a strong presence as the category leader in Europe[7] and the fastest-growing brand in the US[7]. In Japan, since its launch in 2020, annual sales volume has nearly doubled almost every year[8]. It has nationwide distribution channels, the highest number of flavors in the country, and offers mini-sized pouches tailored to Japanese preferences.
Currently in Japan, smoking environments have been decreasing since the 2020 revision of the Health Promotion Act. Social and environmental changes are progressing, such as increased friction between smokers and non-smokers in workplaces regarding smoking breaks and odors.
Against this backdrop, VELO is driving the growth of the oral tobacco category in Japan based on three consumer needs (3Cs): "Convenience" to use anytime, anywhere; "Consideration" for those around you and yourself; and "Conversion" ease due to accessible pricing.
Taking VELO Business to the Next Growth Phase by Creating Over 1 Million Trial Opportunities and Expanding Distribution and Flavors
Based on this market potential, BAT Japan will provide over 1 million opportunities for smokers to experience VELO in 2026. Additionally, the company will advance further expansion of sales channels and enhance flavors tailored to Japanese tastes.
Furthermore, under the campaign concept "REMIX that moment," the company will sequentially roll out initiatives in collaboration with diverse Japanese cultures such as music, art, and gaming to propose new ways to enjoy VELO. As the first step in 2026, starting with an immersive event in late April, the company will expand opportunities for smokers to experience VELO's usage characteristics and scenes in various moments of their daily lives.
Comment from BAT Japan President Mauricio Lara
"With the 25th anniversary and the inauguration of a new structure, our company has entered the next phase of growth. The adoption of smokeless products is expanding in Japan, and by further expanding the offering of the oral tobacco VELO in addition to the heated tobacco product glo™, we will provide Japanese smokers with more diverse and easier-to-use options."
[1] Based on BAT 2025 financial results.
[2] Based on research results targeting nicotine pouches within the oral tobacco category. Based on comparisons with smoke generated from a standard reference cigarette (tar approx. 9mg) regarding the average value of 9 harmful substances independently identified and prioritized as requiring reduction from cigarette smoke. This does not mean these products are free of risk or addictive.
[3] Estimates targeting nicotine pouches within the oral tobacco category. BAT internal estimates. Covers our 50 major markets. The legally defined "New Categories" include users of duty-free products and open-system vape products. For users of new category products, it is assumed that 25% will use multiple products (poly-use) by 2030.
- Poly-use including cigarettes: Refers to adult^ consumers who use cigarette products in combination with tobacco/nicotine products*† that have potential for risk reduction. For many smokers, this is part of a transition period, aiming for complete switching by reducing cigarette consumption while replacing them with one or more potentially risk-reduced products*†.
- Poly-use in new category products: Refers to adult^ consumers who do not use cigarettes at all and use two or more categories of tobacco or nicotine products with potential for risk reduction in combination.
- Total poly-use: Refers to the total number of adult^ consumers who use two or more tobacco and/or nicotine products, regardless of whether cigarettes are included.
^ "Adult" refers to persons who have reached the age defined by relevant laws and regulations in each country/region. However, in no case does it include persons under 18, and in the US, it does not include persons under 21.
* Assuming complete switching from cigarettes, compared and evaluated comprehensively based on various research results. This does not mean these products are free of risk or addictive. † Products sold in the US (Vuse, Velo, Grizzly, Kodiak, Camel Snus, etc.) are subject to FDA (US Food and Drug Administration) regulations, and risk reduction claims are not made without official approval.
[4] Source: Statistics Sweden, Target age: 16-84 or 16+. The Public Health Agency of Sweden, "Use of tobacco and nicotine products by age, gender, and year (Self-reported percentage)" (Accessed: November 11, 2024) https://www.folkhalsomyndigheten.se/the-public-health-agency-of-sweden/living-conditions-and-lifestyle/andtg/tobacco/use-of-tobacco-and-nicotine-products/
[5] Source: World Health Organization (WHO) and International Agency for Research on Cancer (IARC), "Cancer Today: Data visualization tool for global cancer burden in 2022" (Selection criteria: age-standardized rate [world standard] per 100,000 population, incidence rate, male and female combined, cancer type: lip and oral cavity, European Union [27 countries], age range: 15-85+). (Accessed: August 8, 2024) https://gco.iarc.who.int/today/
[6] BAT Japan research.
[7] BAT research. From Q4 2025 onwards, based on sales volume. Growth rates for 2025 are based on comparisons with 2024 unless otherwise noted. Sales volume share refers to the proportion of consumer purchase volume of a specific brand (or combination of brands) out of the estimated purchase volume of the entire nicotine pouch sub-category. Sales volume share (by company) is based on share data held by the BAT Group. Unless a specific market is specified, sales volume share is based on our major markets. Major nicotine pouch markets: USA (Circana Non‑Syndicated RSD), Sweden (NielsenIQ), Denmark (NielsenIQ), Norway (NielsenIQ), Switzerland (IMS), UK (NielsenIQ), Poland (NielsenIQ). These 7 markets account for approximately 90% of the total revenue of the nicotine pouch industry in 2024.
[8] BAT Japan research.