Recently, two Chinese companies in the next-generation tobacco supply chain reported a similar shift in their financial results. One is Intretech (Yingqu Technology), a key supplier to Philip Morris International (PMI). The other is Smoore International, a major technology provider for British American Tobacco (BAT).
Both companies highlighted strong growth in their heated-not-burn (HNB) related businesses.
Taken together, these signals raise an important question:
Is the HNB segment entering a new growth cycle?
Supply Chain Signals: Growth Appears Simultaneous
Starting with the supply side, Intretech’s 2025 annual report shows that its innovative consumer electronics segment generated RMB 1.401 billion in revenue, up 23.29% year-over-year. The company attributed this growth largely to increased demand for e-cigarette-related products.
Although the report uses the general term “e-cigarettes,” Intretech is primarily involved in the IQOS supply chain, providing core components to PMI. The company also noted that its R&D capabilities and responsiveness have strengthened its position within key customer supply systems, helping it secure new projects. Notably, Intretech was recognized as an “Outstanding Supplier of 2024” by PMI.
On the other side, Smoore International reported a striking update in its Q1 2026 financial disclosure. Its HNB-related revenue reached RMB 664 million, representing a year-over-year increase of 1324.9%.
According to Smoore, this surge was driven by its support for the launch of high-end HNB products for strategic clients. As one of the world’s leading atomization technology providers and a core partner to BAT, Smoore’s growth is particularly notable.
In simple terms:
- Intretech → PMI (IQOS supply chain)
- Smoore → BAT (glo supply chain)
Both supply chain partners of the two global tobacco giants are seeing strong momentum in HNB-related business.
Brand-Level Performance: A Mixed but Insightful Picture
Looking at the brand side adds further context.
PMI’s 2025 financial report shows that its heated tobacco unit (HTU) shipments reached 155.1 billion sticks, up 11% year-over-year. In contrast, its traditional cigarette volumes declined by 1.5%.
Market share also improved, with HTUs rising from 5.3% to 5.8% of PMI’s total tobacco portfolio. This suggests that HNB products continue to gain traction within its overall business.
BAT presents a more mixed picture. Its heated products (HP), primarily under the glo brand, recorded sales of around 20 billion sticks in 2025, down 3.7% year-over-year.
However, the sharp growth reported by Smoore in early 2026 may indicate a shift underway. The company specifically mentioned that its growth stems from supporting new high-end HNB product launches starting in the second half of 2025.
From an industry perspective, this could signal that BAT is entering a new product upgrade or rollout phase.
Why Supply Chain Data Matters
In both consumer electronics and tobacco industries, supply chain activity often acts as a leading indicator.
The sequence is typically:
Component orders → Manufacturing ramp-up → Market sales
In other words, changes in the supply chain tend to appear before they are reflected in end-market sales data.
From this perspective, the growth reported by Intretech and Smoore may point to upcoming product launches, increased production volumes, or strategic shifts by major tobacco companies.
A Subtle Shift in Industry Focus
Over the past few years, much of the global attention in next-generation tobacco has focused on e-cigarettes and disposable products.
By comparison, the HNB segment has evolved more steadily and with less hype.
However, for major players like PMI and BAT, HNB remains a core long-term strategy.
Is the HNB Segment Heating Up Again?
When we connect the dots, a clear pattern begins to emerge:
- PMI’s IQOS continues to grow
- BAT is advancing its glo product line
- Both companies’ key suppliers are reporting strong HNB-related growth
This alignment across the value chain may indicate that activity in the HNB segment is picking up again.
It is still too early to confirm whether this marks the beginning of a full new growth cycle. More market data will be needed in the coming quarters.
That said, one thing is clear:
HNB remains a critical and resilient category within the global next-generation tobacco industry.