JUMEIRAH, Abu Dhabi—Philip Morris International (PMI) is targeting to increase its revenue in smoke-free products to 66 percent by 2030, after reporting that it now generates 38 percent of its revenue from smoke-free products.
 

PMI President for Smoke-Free Inhalable Products Category and Chief Consumer Officer Stefano Volpetti at the “Technovation: Smoke-free by PMI Abu Dhabi Edition”.  (Raymund Antonio/MANILA BULLETIN)

This was announced by PMI President for Smoke-Free Inhalable Products Category and Chief Consumer Officer Stefano Volpetti during an interview with Philippine media here after PMI’s Technovation Summit on Wednesday, Dec. 11.
 

“By 2030 we need to be more than 66 percent of our revenue in smoke-free products. If you think about the progress, 5 years ago we had 12 percent of the revenue in smoke-free products. Today we have 38 percent,” he said.
 

“We want to get to 66 percent by 2030. What gives us confidence we're going to get there? Already today we have 25 countries where more than 50 percent of our revenue is smoke-free. And we have a few countries that are above 70 percent of the revenue in smoke-free,” he shared. 
 

PMI President for South and Southeast Asia Frederic de Wilde also said that in emerging markets, the company has a 45 percent share of the total markets where smoke-free products were for sale.
 

This was a “significant increase” from 15 percent in 2015, he added.
 

PMI is on the right track as Volpetti reported that its heated tobacco products IQOS is the number one tobacco product globally with a 75 percent share.

Zyn, PMI’s oral nicotine product (Raymund Antonio/MANILA BULLETIN)

PMI’s oral nicotine brand is also on top globally with a 72 percent share in the United States. Even when compared to homegrown brand such as Japan’s JTI, PMI took 28 points of the 35 percent market share there.
 

But for the executive, even though there is “progress” in PMI’s smoke-free products’ revenue contribution, there is a need to be “passionate” about pushing more for it.
 

He said that every day that regulators and society fail to make progress on embracing smoke-free technology “is one more day in which smokers will continue to use traditional cigarettes.”

The interest in smoke-free products is further seen in PMI’s 2024 third quarter profit, which showed that 38 percent of the company’s total net revenues came from its smoke-free business.
 

PMI’s 2023 Fourth Quarter Report showed that IQOS, its heated tobacco product, has already overtaken Marlboro in terms of revenues for the first time ever.

New IQOS ILUMA i devices are being displayed at the Technovation Summit. (Raymund Antonio/MANILA BULLETIN)