PMI Invests Another $100 Million: Who Will Benefit from Heated Tobacco Growth?

According to a July 22 report compiled by Tobacco Online, Philip Morris International (PMI) will invest another $100 million this year to develop alternatives to its traditional cigarettes. The company is currently stepping up its global marketing efforts to convert conventional smokers into consumers of next-generation tobacco products.

According to PMI’s recently released second-quarter results, the company is becoming increasingly reliant on IQOS. Its heat-not-burn device sold 15 billion tobacco sticks worldwide, up 37% year on year.
 

From a market perspective, global sales of next-generation tobacco products reached $27.74 billion in 2018, of which heated tobacco accounted for about $11.9 billion and vapor e-cigarettes accounted for about $15.8 billion.

By category, conventional vaping products are more prevalent in Europe and the United States, where consumers are mainly “non-smokers,” while the Asia-Pacific market is dominated by heated tobacco products.