Marlboro moves away from traditional cigarettes as parent company Philip Morris International adds a

Everyone knows that Philip Morris International’s IQOS is currently one of the most widely sold heated tobacco products, and in the first half of 2017 Philip Morris International announced it would invest $490 million in its Otopeni plant in Romania. This huge investment will be used to build a production facility for tobacco sticks. Will Philip Morris International take control of the 2018 e-cigarette market?

Philip Morris International dominates the 2018 e-cigarette market

In the first half of 2017, this tobacco giant, Philip Morris International, built another new plant—not to produce cigarettes, but to eliminate traditional cigarettes within five years. 2018 may be a turbulent year for the entire e-cigarette market. The leading devices on the market at the beginning of 2018 may eventually become second-tier products, while Philip Morris International may ultimately dominate the entire field. According to Philip Morris International’s plan, the first phase of the Romanian plant project will be converted this year, mainly by installing the equipment needed to produce tobacco sticks. As for full completion of the plant, that may have to wait until 2020, when new tobacco processing equipment will also be added to meet growing demand.

Traditional cigarettes

Recently, Philip Morris International announced in some UK media that it plans to give up its traditional cigarette business in the UK before the end of 2018. This shows that in the future, Philip Morris International may focus on developing its new tobacco product business in the UK. To that end, Philip Morris International is also encouraging British smokers to quit and switch product categories. The company believes that heated tobacco devices are a better choice and alternative for adult consumers in the UK after quitting smoking.

In response, Philip Morris International said it has already invested up to £2.5 billion in research and development for new tobacco products. At the same time, Philip Morris International has also launched a website dedicated to helping smokers quit, providing assistance to consumers who want to stop smoking.

The Romania plant is Philip Morris International’s third factory for producing HEETS tobacco sticks. Previously, Philip Morris International had already invested in two factories; in October 2016, it completed construction of its first tobacco stick plant in Italy, and in June this year it announced it would build a second HEETS tobacco stick plant in Germany. Philip Morris International said that by the end of 2018, annual output of 100 billion tobacco sticks is expected, which will greatly accelerate its five-year plan to eliminate traditional cigarettes. This undoubtedly suggests that in 2018 Philip Morris International will ultimately dominate the entire e-cigarette market.

This statement is not an exaggeration. Although JUUL devices have risen rapidly and replaced Reynolds American’s Vuse as the best-selling e-cigarette on the market, the situation could reverse again if Philip Morris secures FDA approval to sell its heated tobacco IQOS device. As everyone knows, Philip Morris International’s IQOS is currently the most widely sold heated tobacco product. The Tobacco Products Scientific Advisory Committee under the regulator has planned a public hearing on January 24 to rule on Philip Morris International’s reduced-risk application for the IQOS device, which will be sold under Altria’s Marlboro brand as Heatsticks.