BAT Japan strengthens oral tobacco 'VELO' business under new leadership and system, marking 25th anniversary

（BATジャパン 社長　マウリシオ・ララ）

British American Tobacco Japan G.K. (Headquarters: Minato-ku, Tokyo; President: Mauricio Lara, hereinafter "BAT Japan") announced on March 26, 2026, its policy to accelerate initiatives for expanding smokeless products in the Japanese market and strengthen oral tobacco "VELO" as a key focus area, coinciding with the inauguration of its new president and its 25th anniversary. The company will promote a multi-category strategy to respond to changing social environments and consumer needs, contributing to the development of Japan's smokeless market.

The BAT Group aims to generate the majority of its revenue from smokeless products by 2035. BAT Japan is already a leading market where smokeless business accounts for over 50% [1] of its revenue, and by capturing the growing domestic demand for smokeless products, it will drive the overall growth of the 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 has the characteristics of producing no smoke, odor, or ash, and preventing unwanted passive smoking. It does not require devices or charging and can be used hands-free, making it easy to use regardless of location or time. Furthermore, since 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 in the tobacco market [3], with user numbers projected to grow at a compound annual average of 6-15% from 2025-2030 [3]. In Sweden, the birthplace of oral tobacco, its usage rate is approximately three times [4] that of cigarette smoking, and the mortality rate from smoking-related diseases is the lowest in the EU [5].

In Japan, too, the oral tobacco market is steadily expanding, with the number of users estimated to have grown from approximately 300,000 in 2022 to about 900,000 in 2025 [6]. By 2030, it is projected to grow to a size of 4 to 5 million people [6].

Changes in Smoking Environment and Consumer Needs in Japan Drive VELO's Growth

VELO is the No. 1 global share oral tobacco brand [7]. Originating from Sweden, it has expanded its presence to approximately 50 markets, holding the top category share in Europe [7] and being the fastest-growing brand in the US [7]. Since its launch in Japan in 2020, its annual sales volume has almost doubled every year [8]. It has a nationwide distribution network and the largest number of flavors in Japan, offering mini-sized pouches tailored for Japanese consumers.

Currently in Japan, the smoking environment is shrinking due to the revision of the Health Promotion Act in 2020. Social and environmental changes are progressing, such as increasing friction between smokers and non-smokers regarding smoke breaks and odors in the workplace.

Furthermore, against the backdrop of three consumer needs (3C) – "Convenience" for use anytime, anywhere, "Consideration" for both surroundings and self due to its usage characteristics, and "Conversion" facilitated by its accessible price – VELO is driving the growth of the oral tobacco category in Japan.

Based on this market potential, BAT Japan announced in 2026 that smokers who V...