Job Ad Suggests IQOS Set for U.S. Debut in Texas
With the settlement of its intellectual property dispute with British American Tobacco removing a major barrier to sales in the U.S., PMI International is preparing to launch IQOS heated tobacco devices in Austin, Texas, according to U.S. media. After res
The resolution of an intellectual property dispute with British American Tobacco has removed the main obstacle to selling the product in the United States. According to U.S. News, Philip Morris International is preparing to launch the IQOS heated tobacco device in Austin, Texas. After resolving its intellectual property dispute with British American Tobacco, the city is set to become PMI’s first market in its return to the U.S. The dispute had previously led the International Trade Commission to ban IQOS imports into the country.
PMI previously announced plans to launch IQOS in four cities across two U.S. states starting in the second quarter, beginning with one city before a broader rollout in 2025, though the company did not disclose specific details.
According to U.S. News, job postings on LinkedIn indicate that PMI plans to launch the product in Texas. The listings, posted this month, include positions such as field sales representatives, area managers, and retail sales advisors.
The U.S. will be a key market for IQOS. Euromonitor estimates that tobacco sales in the United States reached $143.6 billion in 2022. Cigarettes accounted for most of that revenue, but Euromonitor forecasts their value will decline by 30% by 2027, while sales of smoking alternatives such as vaping devices will increase by 36% over the same period.
Investors are watching to see whether PMI can create a strong heated tobacco market in the U.S., where vaping devices currently dominate.
Brett Cooper, managing partner and analyst at equity research firm Consumer Edge, said Texas offers an interesting test market because of its broad demographics. He noted that distinct cities such as Austin, Houston, and Dallas provide opportunities to reach a wide range of consumer groups.
Data from the U.S. Centers for Disease Control and Prevention show that Texas has relatively low tobacco taxes, with cigarette excise tax at $1.41 per pack as of September 2023.
In January, Texas introduced a new vaping law prohibiting products that include symbols aimed at minors, feature celebrities, or depict cartoon-like fictional characters.
PMI believes IQOS could capture a 10% share of U.S. tobacco sales by 2030.
