Beyond IQOS ILUMA, PMI Expands Lower-Priced BONDS Heated Tobacco Platform: Seven Markets Added in Q3, With Rollouts in Japan, Europe and North Africa

Key Points

• PMI's SEC filings confirm that BONDS and BLENDS were available in 15 markets at September 30, 2026, compared with eight at June 30.
• BONDS sales in Japan are scheduled to expand from three to 17 prefectures on November 9, followed by official online sales in designated areas on November 18. Spain and Morocco introduced BONDS in early November.
• In Japan, the BONDS device costs approximately 25% less than IQOS ILUMA i ONE. BLENDS tobacco sticks retail for ¥570 per pack, within the lower price range of Japan's heated tobacco market.
• BONDS uses ROUNDHEAT external heating and proprietary tobacco sticks. BONDS 2 hardware, featuring a redesigned body and higher rated battery endurance, is available in several markets.
• PMI says the platform targets conventional cigarette smokers who have not switched to heated tobacco, while its Philippine, Indonesian and Malaysian operations show different commercialization approaches.

2Firsts

November 6, 2026

Philip Morris International (PMI) is expanding international sales of BONDS by IQOS, its lower-priced heated tobacco platform. The company's third-quarter 2026 filing with the U.S. Securities and Exchange Commission shows that BONDS devices and BLENDS tobacco sticks were available in 15 markets at the end of September, up from eight at the end of June. PMI subsequently announced a regional expansion in Japan and launched BONDS in Spain and Morocco in early November.

During its October 21 earnings call, PMI management said BONDS was intended to appeal to conventional cigarette smokers who had not adopted heated tobacco. The platform uses ROUNDHEAT external heating technology, separate from the induction system used by IQOS ILUMA, and carries a lower device price.

According to Philip Morris Japan's November 5 announcement, BONDS sales are scheduled to expand from three Japanese prefectures to 17 beginning November 9. Official online purchases for residents of designated regions are planned to begin November 18.

Seven Markets Added in Q3 as Japan, Spain and Morocco Extend BONDS Rollout

PMI first introduced BONDS in the Philippines in November 2022, later extending the platform to Colombia and other markets.

The company expanded its international distribution during 2026. Its second-quarter Form 10-Q reported BONDS device and BLENDS tobacco stick availability in eight markets at June 30. The third-quarter filing put that figure at 15 as of September 30.

The two filings used the same product and market-count terminology. PMI did not provide a complete country-by-country list in those disclosures or break out BONDS device sales by market.

Japan began limited BONDS sales on July 6 in Fukuoka, Saga and Nagasaki.

Under the November expansion, scheduled to begin November 9, sales will extend to Osaka, all five prefectures in the Chugoku region, all four in Shikoku and seven across Kyushu, bringing the total to 17 prefectures.

PMI Japan also plans to introduce official online sales on November 18, restricted to residents of the designated areas. The expansion does not constitute a nationwide Japanese launch.

In Spain, PMI selected Extremadura for the country's BONDS debut on November 3. According to local broadcaster Cadena SER, Extremadura is also one of the company's tobacco sourcing regions.

PMI said it had spent approximately €230 million purchasing tobacco from the area over the previous decade. Some regional tobacco has been certified for use in PMI's heated tobacco products, although available information does not establish whether it is used in the BLENDS sticks introduced with BONDS.

In Morocco, PMI held a BONDS launch event in Casablanca on November 4. Local publication Le Desk reported a launch device price of 200 Moroccan dirhams and a BLENDS tobacco stick price of 28 dirhams per pack.

BONDS had previously entered Kuwait in September. In Malaysia, official IQOS programs covering BONDS 2 registration, first-device purchases and referrals took effect in October.

The market approaches differ. Japan has used a phased regional rollout, Spain initially launched in one autonomous community, Morocco began in Casablanca, and Malaysia has combined authorized distribution with customer incentives.

PMI has not published an updated global market total incorporating the November launches.

Lower Device Prices and Proprietary Sticks Create a Separate Platform Alongside IQOS ILUMA

PMI operates heated tobacco systems using different heating technologies and product price tiers.

IQOS ILUMA employs SMARTCORE induction heating and uses designated tobacco sticks, including TEREA and SENTIA.

BONDS uses ROUNDHEAT external resistive heating, applying heat to the tobacco stick from the outside. Its BLENDS consumables are designed for BONDS and cannot be used interchangeably with TEREA or SENTIA.

PMI described affordability as a key part of the BONDS proposition when the platform was introduced in 2022.

Official prices in Japan, Morocco and Kuwait continue to place BONDS below entry-level IQOS ILUMA devices.

In Japan, standard suggested retail prices are:

BONDS is ¥1,000, or approximately 25.1%, cheaper than ILUMA i ONE and ¥4,000 below the standard ILUMA i model. These comparisons exclude temporary promotional discounts and first-purchase incentives.

Japan's BONDS portfolio includes four BLENDS tobacco stick variants, each containing 20 sticks and priced at ¥570 per pack.

Following retail price increases effective October 1, 2026, PMI's SENTIA costs ¥590 per pack and TEREA ¥640.

Japan Tobacco's CAMEL tobacco sticks for Ploom cost ¥570 per pack, while MEVIUS costs ¥590. British American Tobacco's neo sticks for glo HYPER are priced at ¥570 and KENT at ¥550.

BLENDS is ¥20 cheaper than SENTIA and ¥70 below TEREA, matching the listed prices of CAMEL and neo.

Changes to Japan's heated tobacco tax system during 2026 coincided with price increases by major manufacturers in April and October.

BONDS entered Japan in July and is expanding its regional distribution after the October price adjustments. PMI has not identified the October tax changes as the direct cause of the initial BONDS launch.

Device pricing shows similar positioning in other markets.

The Moroccan IQOS website currently lists BONDS at 150 dirhams and ILUMA i ONE at 250 dirhams, a 40% difference. The current listed BONDS price differs from the 200-dirham launch price reported by Le Desk, potentially reflecting different timing or sales conditions.

In Kuwait, the official IQOS device comparison lists BONDS at 7 Kuwaiti dinars and ILUMA i ONE at 10 dinars, a 30% difference.

The consumables also differ in tobacco format.

According to the Japanese BONDS website, BLENDS uses a cut-tobacco format similar to that used in conventional cigarettes, combined with ROUNDHEAT external heating. PMI links the product design to the taste preferences and usage habits of cigarette smokers.

BONDS hardware has evolved since the original 2022 launch.

The first Philippine device was advertised as supporting up to 20 uses per full charge. The model currently sold in Japan has a more elongated aluminum body, weighs approximately 88 grams and supports up to 28 uses per charge, including up to three consecutive sessions. Charging takes approximately 120 minutes.

Official IQOS materials in Malaysia and Kuwait refer to the newer model as BONDS 2, while a Japanese hardware review found a “bonds 2” marking on the device itself.

PMI has not published a complete global hardware-generation timeline in the materials reviewed. The exact device generations introduced in Spain and Morocco remain unconfirmed.

BONDS and ILUMA have separate hardware architectures and tobacco stick assortments, requiring distinct device and consumables inventories across PMI's distribution and retail channels.

Philippine BLENDS Withdrawal Contrasts With Localized Products and Customer Incentives Elsewhere

BONDS' international expansion has been accompanied by changes to product portfolios and distribution arrangements in individual markets.

The Philippines was among the platform's original launch markets in 2022. In March 2025, however, the Philippine IQOS website announced the phase-out of four BLENDS variants by March 28.

The affected products were Ice Fresh, Cool Fresh, Round Classics and Rich Classics. PMI provided customers with information on moving to IQOS ILUMA and its compatible tobacco sticks.

The change concerned the Philippine BLENDS range. PMI continued to operate other heated tobacco products in the country.

Indonesia followed a different commercialization approach.

PMI affiliate HM Sampoerna introduced BONDS on a limited basis in Bandung during the fourth quarter of 2024, together with BLENDS A, a tobacco stick range associated with the established Sampoerna A cigarette brand.

The local portfolio included a clove-flavored variant reflecting Indonesia's kretek tobacco preferences.

During 2025, BONDS and related products expanded to approximately 20 major Indonesian cities.

The Indonesian range drew on Sampoerna's established local tobacco branding and flavor portfolio rather than relying exclusively on the original global BLENDS assortment.

Malaysia's commercial programs focused partly on device registration and referrals.

Under official terms effective from October 2026, eligible BONDS 2 buyers could receive first-purchase or registration incentives. Existing registered users could also refer other eligible adult consumers through a code-based program.

Selected promotions provided 30-ringgit device purchase discounts and referral rewards, subject to eligibility, registration and channel conditions.

PMI has not disclosed incremental device volumes or customer-acquisition costs associated with those programs.

The Philippine product phase-out, Indonesian localization and Malaysian customer incentives show how BONDS product portfolios and operating arrangements have differed across markets.

PMI Targets Cigarette Smokers While BONDS Financial Results Remain Undisclosed

PMI reported approximately $11.44 billion in net revenue for the third quarter of 2026, up 5.5% year over year. Smoke-free products contributed more than 40% of the group's quarterly net revenue.

As of September 30, PMI's smoke-free products were available in 110 markets, compared with 15 for BONDS and BLENDS.

During the company's October 21 earnings call, management discussed BONDS' role in reaching conventional cigarette smokers.

Executives said heated tobacco penetration in Japan had exceeded 50%, while a substantial group of consumers continued to smoke conventional cigarettes. PMI said BONDS and BLENDS were intended to appeal to adults who had not switched to heated tobacco.

According to management, early consumer feedback suggested that some cigarette smokers regarded BONDS and BLENDS as providing an experience closer to conventional cigarettes. Relatively fewer existing heated tobacco users were moving to BONDS.

Those statements reflect PMI's internal consumer feedback. The company did not publish the full survey sample, conversion rates or separate BONDS sales figures alongside the comments.

PMI's heated tobacco portfolio includes induction-based IQOS ILUMA with TEREA and SENTIA tobacco sticks, alongside external-heating BONDS with proprietary BLENDS consumables and lower device prices in several markets.

The company also distributes lil heated tobacco products in certain markets through its partnership with South Korea's KT&G. These platforms differ in their hardware architectures, compatible consumables and commercial arrangements.

BONDS added seven markets during the third quarter and continued to expand in November, increasing the international availability of PMI's lower-priced heated tobacco platform.

PMI has not separately reported BONDS device sales, BLENDS tobacco stick shipments, platform revenue, margins or active users by market.

The extent to which BONDS can generate recurring consumables sales and attract additional cigarette smokers to PMI's heated tobacco business will depend on subsequent market performance.

Follow 2Firsts for coverage of corporate strategy, international expansion, distribution networks and commercial developments across the global tobacco and nicotine industries.

Cover image source: Philip Morris International

References：

1. PMI — Third-Quarter 2026 Form 10-Q
2. PMI — Second-Quarter 2026 Form 10-Q
3. PMI — Q3 2026 Earnings Release
4. PMI — Q3 2026 Earnings Call Transcript
5. Philip Morris Japan — BONDS Regional Expansion
6. PMI — Original BONDS Launch and Positioning
7. IQOS Japan — BONDS Device Specifications
8. IQOS Japan — BLENDS Tobacco Sticks
9. Impress Watch — October 2026 Tobacco Price Changes
10. IQOS Morocco — BONDS Device and Pricing
11. IQOS Kuwait — Device Price Comparison
12. IQOS Malaysia — BONDS 2 Commercial Programs
13. IQOS Philippines — BLENDS Phase-Out
14. HM Sampoerna — Indonesia BONDS Commercialization
15. Cadena SER — BONDS Spain Launch
16. Le Desk — BONDS Morocco Launch
17. iF Design — BONDS Industrial Design
18. Kakaku.com Magazine — BONDS 2 Hardware Review