There are now 24.9 million users of smoke-free alternatives around the world, and 17.8 million of them have stopped smoking altogether. This was reported by Philip Morris International when announcing its final financial results for last year. Since 2008, the company has invested more than $10.5 billion in the scientific development and commercialization of innovative smoke-free alternatives for adult smokers, with the goal of stopping the sale of cigarettes altogether globally.
The company’s net revenue from smokeless alternatives worldwide was 31.3% of total net revenue. The company specifically clarifies that the data does not include Russia and Ukraine.
In Europe, they account for 40% of the region’s total revenue, and Bulgaria’s users are over 230,000. The market share of heated tobacco products (HTPs) in markets where IQOS is available increased by 1.1 points to 8.0%, or by 1.4 points to 7.9%.
“Despite the difficulties we faced in running our business in 2022 due to the war in Ukraine, supply chain disruptions and inflationary pressures globally, we delivered strong annual results thanks to continued growth at IQOS,” says Jacek Olczak, CEO.
Late last year, the company announced changes to its regional structure with the conversion of six regions into four to support the growth of the company’s smokeless business, strengthen consumer focus and accelerate the creation and introduction of innovations. The moves follow the company’s strategic ambitions to become a predominantly smoke-free company, with net revenues generated primarily from smoke-free alternatives by 2025.
“We are getting closer to our goal of becoming a predominantly smokeless company, with smokeless alternatives now accounting for almost a third of our net revenue for the year. With the acquisition of Swedish Match in 2022 and the agreement to take full control of IQOS in the US in 2024, we have taken two important steps in our smoke-free transformation and are in an excellent position to accelerate this process. As we enter 2023, we continue to innovate in our rich portfolio of smokeless alternatives,” adds Jacek Olczak.
Earlier this year, Philip Morris International and KT&G, South Korea’s leading tobacco and nicotine products manufacturer, entered into an agreement to deepen their cooperation. The company will thus continue to have exclusive access to the Korean giant’s smokeless brands and product innovations in development, which will enrich Philip Morris International’s existing smokeless product portfolio.
