BAT Japan Strengthens Oral Tobacco 'VELO' Business with New Structure Upon New President's Inauguration and 25th Anniversary
BAT Japan is reinforcing its oral tobacco brand 'VELO' as a key growth area, coinciding with the appointment of a new president and the company's 25th anniversary. This strategic move aligns with the global and domestic expansion of smokeless tobacco markets, driven by evolving consumer needs and regulatory changes, positioning VELO to capitalize on Japan's growing demand.
📋 Article Processing Timeline
- 📰 Published: March 26, 2026 at 23:24
- 🔍 Collected: March 28, 2026 at 21:59 (46h 34m after Published)
- 🤖 AI Analyzed: April 14, 2026 at 23:30 (409h 31m after Collected)
British American Tobacco Japan LLC (Headquarters: Minato-ku, Tokyo, President: Mauricio Lara, hereinafter "BAT Japan") announced on March 26, 2026, that, marking the inauguration of a new president and its 25th anniversary, it will accelerate initiatives to expand its smokeless products in the Japanese market and strengthen its oral tobacco "VELO" as a future focus area. The company will promote a multi-category strategy that responds to changing social environments and consumer needs, contributing to the development of Japan's smokeless market.
The BAT Group aims to derive the majority of its revenue from its smokeless business by 2035. BAT Japan is already a leading market where the proportion of its smokeless business in revenue exceeds 50% [1], and by capturing the growing smokeless demand in Japan, it will drive the growth of the entire group.
Growing Demand for Oral Tobacco Worldwide and in Japan
Oral tobacco is a smokeless product used by placing it between the gum and cheek. It is characterized by producing no smoke, odor, or ash, and not generating unwanted secondhand smoke. It does not require a device or charging and can be used hands-free, making it easy to use anytime, anywhere. Furthermore, as it does not involve combustion, exposure to harmful substances is considered to be at a very low level [2].
Globally, the oral tobacco market is rapidly expanding. It is the fastest-growing category [3] within the tobacco market, with an expected compound annual growth rate of 6-15% in user numbers between 2025 and 2030 [3]. In Sweden, the birthplace of oral tobacco, its usage rate is approximately three times that of cigarette smoking [4], and the mortality rate from smoking-related diseases is among the lowest in the EU [5].
In Japan too, the oral tobacco market is steadily expanding, with an estimated user base projected to grow from approximately 300,000 in 2022 to about 900,000 in 2025 [6]. By 2030, it is seen as having the potential to grow to a scale of 4 to 5 million people [6].
Changes in Smoking Environment and Consumer Needs in Japan Boost VELO's Growth
VELO is the global No. 1 oral tobacco brand [7]. Expanding its reach to approximately 50 markets as a Swedish-born brand, it holds a leading position in category share in Europe [7] and is the fastest-growing brand in the US [7]. Since its launch in Japan in 2020, its annual sales volume has nearly doubled each year [8]. It boasts nationwide distribution, the largest number of flavors in Japan, and mini-sized pouches tailored for Japanese consumers.
Currently in Japan, smoking environments have been decreasing since the revision of the Health Promotion Act in 2020. Social and environmental changes are advancing, such as increased friction between smokers and non-smokers regarding smoking breaks and odors in the workplace.
Furthermore, driven by three consumer needs (3Cs) – "Convenience" of use anytime, anywhere; "Consideration" for oneself and others; and "Conversion" due to its accessible price – VELO is leading the growth of the oral tobacco category in Japan.
In light of this market potential, BAT Japan in 2026...