38% of PMI's Revenue is smoke-free

Philip Morris International (PMI), the world’s largest tobacco manufacturer, has launched a new product on the global market, offering smokers who do not quit a better alternative. This "smoke-free product" allows tobacco users to consume nicotine with reduced harm to their health.

”At PMI’s ninth annual Technovation conference in Neuchâtel, Switzerland on innovations, technologies, and scientific advancements toward a smoke-free future, the main focus was on these less harmful alternatives.

Speaking at the conference, PMI’s Chief Executive Officer Jacek Olczak said the development of smoke-free products came as a result of implementing these innovations.

"Scientific studies show that nicotine itself does not harm the human body. The main harm comes from substances produced when tobacco is burned. People claim that nicotine causes cancer, but if you look at the list of carcinogens, nicotine isn’t there. Alcohol is, but no one talks about that. Scientists have proven that substances created during cigarette combustion can be carcinogenic. That’s why we started producing smokeless, smoke-free nicotine products,” Olczak said.

On the global market, the product, marketed as IQOS, does not involve burning. IQOS is a device in which a stick is inserted and heated, delivering nicotine without emitting the 6,000 harmful substances typically produced by combustion. Since nothing burns, no carcinogens are generated, reducing the health risks versus continued smoking.

PMI, which produces some of the world’s most recognizable cigarette brands, is seeing an increasing share of its revenue from these IQOS devices.

"We started testing this product 10 years ago, and our ambitions today are far greater than they were back then. In 2023, 38% of PMI’s revenue came from 'smokeless cigarettes,'” Olczak added.

PMI’s smoke-free vision is clear: "If you don’t smoke, don’t start, if you smoke, quit, if you don’t want to quit, switch to less harmful alternatives”.

Olczak pointed to Sweden as a successful example of a harm-reduction strategy.

In the past, 49% of Swedish men were regular smokers, but the country has drastically reduced smoking rates. This was largely achieved by transitioning to lower-risk products such as snus, nicotine pouches (a traditional form of smokeless tobacco), and other alternatives like vapes and heated tobacco.

In a question from anews.az, PMI CEO Jacek Olczak said that in countries where smoke-free products are allowed and regulated, the sale of conventional cigarettes gradually decreases. "First of all, it is very important that consumers have access to information on smoke-free alternatives and their advantages as compared to cigarettes. If we can communicate to smokers the scientifically proven information on the differences between cigarettes and smoke-free products, they will make the right choice and stop smoking. This is what we can observe now in Japan, Lithuania, and Poland”, he said.

In Japan, after introducing smoke-free products, the number of smokers fell from 19% to 13%, whereas the sale of cigarettes decreased by almost 50%. Now, Japan is among those countries that will most probably be the first to refuse cigarettes voluntarily.

Today, the smoking rate in Sweden has dropped to 5.6% and only needs to further drop to 5%, when Sweden will be the first country in Europe to be declared smoke-free.

The conference also highlighted the need for significant investment in improving smokeless products. Over the past decade, PMI has invested more than $12 billion in technology development, scientific research, and production, and this figure continues to rise.