2Firsts Observation: Global Travel Retail Becomes the Main Battleground for NGP as PMI and BAT Step Up Competition

According to observations by 2Firsts, in recent months international tobacco companies have been accelerating their expansion into the global travel retail market—through advertising campaigns, online platform development, and duty-free store entries—positioning it as one of the core battlegrounds for new-generation tobacco product (NGP) competition.

For example, in August, British American Tobacco (BAT) launched the Vuse Ultra in the duty-free area of Terminal 2 at Frankfurt Airport, accompanied by a digital marketing campaign. In July, Philip Morris International (PMI) rolled out the smoke-free product travel information platform smokefreetravel.com, covering availability and regulatory details for IQOS, VEEV, ZYN, and other products at major airports.

BAT’s Vuse Ultra Makes Its Debut in Travel Retail

Recently, according to what appears to be a BAT press release, the company’s flagship Vuse Ultra device under its Vuse e-cigarette brand has gone on sale at Terminal 2 of Frankfurt Airport, and will later be introduced to the retail networks of several major UK airports. Reportedly, this marks the product’s debut in the global travel retail channel, with the campaign running from August to September 2025. BAT stated that it has partnered with international duty-free and travel retail operator Gebr. Heinemann to focus on promoting Vuse Ultra in the global travel retail sector. (Read more)

On-site images show that Vuse Ultra has its own dedicated display area. Notably, the promotional materials feature the wording “GLOBAL VAPE BRAND ONE.”

PMI Launches Global Smoke-Free Product Travel Information Platform

In July this year, Philip Morris International’s (PMI) Global Travel Retail division introduced a major new initiative in the channel—the launch of its first smoke-free product travel information platform, smokefreetravel.com . The platform provides information on the availability of major smoke-free products such as IQOS, VEEV, and ZYN at major airports worldwide and in select domestic markets, along with regulatory guidance and user support.

2Firsts conducted a user evaluation of the platform (Related reading: PMI Launches Global Smoke-Free Travel Information Platform: 2Firsts Shares User Insights and Trend Analysis). The review found that it provides information on the availability of PMI’s smoke-free products at major airports worldwide and in select domestic markets, and includes two key support sections: “International Assistance” and “FAQs – Travelling with your smoke-free products.”

Advertising and Store Entry in Parallel: Tobacco Companies Race to Secure Airport Channels

In the global travel retail strategies of international tobacco companies, setting up dedicated display areas and launching service platforms have recently emerged as key upgrade initiatives, while advertising campaigns and duty-free store entries remain standard practices at major international airports.

In June this year, 2Firsts observed at the Dubai International Airport duty-free zone that Japan Tobacco (JT) was running ads for its heated tobacco product Ploom X Advanced on electronic screens within the duty-free area. The advertisements clearly stated that the product was available for purchase at the airport’s duty-free stores. (Read more)

At Dubai Airport’s duty-free stores, Philip Morris International’s (PMI) IQOS ILUMA and British American Tobacco’s (BAT) VELO nicotine pouches are also available for purchase.

In May this year, 2Firsts observed at the Madrid Airport duty-free zone that Philip Morris International (PMI) was running advertisements for its VEEV NOW ULTRA e-cigarette on electronic screens within the duty-free area.

In 2024, Philip Morris International (PMI) opened an IQOS zone at Kansai International Airport in Japan, leveraging digital innovation to provide travelers with an enhanced experience. The zone was designed with passenger flow and needs in mind, offering physical product experiences and community spaces, combined with interactive engagements through digital technology. (Read more)

2Firsts Insight: Global Travel Retail Becomes a Core Expansion Channel for International Tobacco Companies’ NGP Brands

2Firsts analysis suggests that international tobacco companies view global travel retail (GTR) as a key channel for new-generation tobacco products (NGPs), driven primarily by two factors:

1. Airports are among the world’s highest-value traffic hubs

• Premium customer profile: Passenger flow at international airports is dominated by middle- to high-income groups, international business travelers, and tourism consumers, who have strong purchasing power and a high acceptance of new consumer brands.
• A natural “global brand stage”: Brands seen in airports are subconsciously associated by consumers with “international” and “premium” status—an image crucial for NGP branding.

2. Travel retail serves as a regulatory “breakthrough” for NGPs

• Legitimacy in cross-border sales: Many countries restrict the domestic retail of NGPs but allow sales in duty-free stores or via in-transit purchases, making GTR a relatively gray yet legal channel.
• Duty-free pricing eases entry barriers: Lower duty-free prices compared with local retail reduce the “first trial threshold” for consumers, aiding brand cultivation.
• Circumventing certain ad bans: In markets with strict advertising regulations (especially in the EU and parts of Asia-Pacific), airport advertising rules are relatively relaxed, offering one of the few legal exposure opportunities.