On the 20th, Philip Morris International (PMI) announced that it is accelerating the realization of its vision of a 'smoke-free future' thanks to the growth of its flagship non-combustible product, IQOS.
According to PMI's announcement on its fourth-quarter and annual performance for 2024, the net sales of PMI's non-combustible business, including IQOS, accounted for 40% of total net sales. In the top five countries where PMI operates, 60% of net sales come from the non-combustible business.
This is attributed to the rapid growth of IQOS, a heated tobacco product, and the dedicated tobacco stick, TEREA. As of the end of 2024, the number of countries where PMI's non-combustible products are launched has expanded to 95.
As of the end of last year, the number of users of PMI's non-combustible products worldwide reached 38.6 million, an increase of 5.3 million in one year.
Among them, the number of IQOS users reached 32.2 million. The proportion of users who completely quit conventional cigarettes and switched to IQOS is estimated to be 72%. This proves that IQOS is consistently being chosen as a better alternative for adult smokers looking to continue smoking.
Based on this growth trend, PMI has expressed its ambition to increase the proportion of net sales from its non-combustible business to two-thirds of total revenue by 2030.
Since 2008, PMI has continuously increased its investment in the development, scientific research, and commercialization of non-combustible products. As of the end of last year, the cumulative investment amount was approximately $14 billion, which is more than 20 trillion won.
A representative from Korea Philip Morris noted, "Our non-combustible products, led by IQOS, are continuously growing and accelerating the vision of a 'smoke-free future.' We will strive to help adult smokers who wish to continue smoking transition to alternative products like IQOS as quickly as possible through our latest and most innovative product, the IQOS ILUMA i series, launched last month."