Who Are the Core Customers in British American Tobacco Company's Target Market?

BAT targets brand-loyal adult smokers who value heritage premium labels such as Dunhill, Kent, and Lucky Strike; this group remains the primary financial anchor and accounted for a large portion of BAT's combustible revenue in fiscal 2025.

BAT prioritises high-growth vapers and heated-tobacco users – Vuse (vape), Glo (heated tobacco) and Velo (modern oral nicotine) – which collectively drove approximately 20 – 30% of BAT's next – generation product revenue in 2025 as the company shifts mix toward reduced-risk alternatives.

BAT serves consumers directly via retail and indirect channels and supports B2B distribution partners; retail and wholesale buyers remain critical in emerging markets where legal-age smokers and price-sensitive segments dominate volume.

The combustible smoker segment is most important by revenue and scale in 2025, though New Category products are fastest-growing and essential to BAT's strategic shift; dual users bridge the transition and represent a sizeable share of global nicotine consumption patterns.

The United States is the primary vapour market for British American Tobacco target market because Vuse held about 42 percent value share of US e – cigarette retail as of early 2026; legal-age vapers and e-cigarette users concentrate purchasing in convenience and mass channels.

Europe, especially Scandinavia and Western Europe, is the core customers region for modern oral products where Velo commands over 65 percent share in several markets, reflecting high uptake among adult nicotine users seeking smokeless alternatives.

Heated tobacco demand is most resilient in Japan and parts of Eastern Europe through the Glo platform, with usage concentrated among urban, brand – loyal adult smokers who shift from cigarettes to heated tobacco products.

Combustible cigarette volume remains concentrated in Asia-Pacific and Africa where BAT target customers include price-sensitive smokers and rising middle – income legal-age smokers; these regions still drive the bulk of global cigarette shipments despite declines in Western markets.

BAT is strongest where product mix matches regulation and channel reach: Vuse in US vapour retail, Velo in European modern oral, and Glo in Japan deliver the largest revenue and market relevance by product category and region.

Fastest growth in 2025 – 2026 appears in European modern oral and US vapour categories, plus select Asian markets where heated tobacco and hybrid offerings expand; for context read Ownership and Control of British American Tobacco Company.

BAT broadens its audience by selling combustibles, vapour (Vuse), and oral nicotine (Velo), capturing legal-age smokers and vapers and targeting price-sensitive smokers and premium consumers across regions; New Category revenue hit £5.4 billion in fiscal 2025, showing product-adjacent expansion.

Retention relies on product transition paths (combustible to New Category), targeted digital marketing, and tailored regional SKUs; professional judgment forecasts combustible volume declines of 4 – 5% annually, so retention is driven by switching within BAT's ecosystem.

Loyalty programs and digital engagement in New Category increase repeat purchases and lifetime value; aggregated New Category margins reached profitability late 2024, boosting depth of customer relationships among vapers and e-cigarette users.

The strongest lever is rapid scaling of profitable New Category products (Vuse, Velo) supported by digital acquisition and loyalty; success in 2026 hinges on navigating the US FDA PMTA process and EU flavor regulations to secure market access and capture a larger share of the total nicotine wallet. Read more on BAT's strategic direction here: Mission, Vision, and Values of British American Tobacco Company