PMI to Stop Selling Cigarettes in Japan Within 10 Years
Philip Morris International (PMI) plans to stop selling cigarettes in Japan within 10 years. Jacek Olczak, who took over as CEO on May 5, predicted in an interview with Nikkei that Japan will become a smoke-free society within 10 years. PMI hopes to phase
Philip Morris International (PMI) plans to stop selling cigarettes in Japan within 10 years.<\/span><\/div>
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Jacek Olczak, who took over as CEO of the company on May 5, predicted in an interview with Nikkei that Japan will become a smoke-free society within 10 years. PMI aims to gradually eliminate combustible tobacco products from other markets in the next 10 to 15 years, with Olczak expressing a desire for this transition to begin in Japan.<\/span><\/div>
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Olczak stated that the company will focus on its heated non-combustible (HNB) products. In 2016, PMI began nationwide sales of its IQOS HNB device in Japan. According to Euromonitor International, the company held a 70% market share of such products in Japan in 2019, far ahead of its competitors Japan Tobacco (10%) and British American Tobacco (20%).<\/span><\/div>
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In 2020, non-combustible tobacco (including HNB and e-cigarettes) accounted for 11% of Philip Morris's total cigarette shipments of 706.4 billion sticks, an increase of 3 percentage points from 2019. The global market for combustible cigarettes has shrunk by nearly 10% over the past four years.<\/span><\/div>
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Currently, non-combustible tobacco products are sold in 66 countries and regions, and Olczak hopes to increase the proportion of non-combustible tobacco products to 100% by 2025.<\/span><\/div>
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Now, nearly 30% of all tobacco sales in Japan are heated products. The country's success is partly attributed to its ban on e-cigarette sales and its relatively relaxed regulatory framework.<\/span><\/div>
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Last year, Japan banned smoking in restaurants, with HNB products being an exception. If certain conditions are met (such as having ventilation systems), HNB products can be consumed while eating or drinking.<\/span><\/div>
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In 2019, tobacco companies sold 118.1 billion cigarettes in Japan, about one-third of the peak in 1996.<\/span><\/div>
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Olczak stated that Philip Morris will launch devices using new technologies and consider expanding the functionality of heated devices. In addition to providing age verification features to prevent underage smoking, the company will also begin developing an application to help smokers manage their health.<\/span><\/div>
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For the fiscal year ending December 2020, Philip Morris reported total sales of $28.6 billion, a 4% decrease from the previous year, while net profit reached $8 billion, an increase of 12%.<\/span><\/div>
