Philip Morris International delays new tobacco product launch in Spain

According to a report from Cinco Dias on February 22, Philip Morris International (PMI) has halted the launch of alternative products to traditional cigarettes in Spain, as well as related investments, pending the issuance of a Royal Decree by the Ministry of Health.

During an interview with Cinco dias, Marco Hannappel, Vice President of Philip Morris International (PMI) for the Southwest Europe region, stated that "before the regulatory framework is clear, we cannot consider investing in and launching products that may be aborted." This includes regulations in Italy and Spain, two major markets.

The executive admitted to being interested in launching ZYN nicotine pouches in Spain.

Providing all alternative products in our product lineup to Spanish consumers is our way of achieving a smoke-free future. However, due to ongoing regulatory discussions, this issue has not yet been discussed.

In December 2024, the Spanish Ministry of Health concluded a public hearing to receive proposals for reforming Royal Decree 579/2017, introducing regulations for regulating nicotine pouches. Previously, Spain had adjusted its regulations in accordance with EU directives, harmonizing legislation on heated tobacco and traditional cigarettes, banning added flavors, and requiring health warnings on packaging.

Hannapel stated that Spain should not simply treat heated tobacco products the same as traditional cigarettes in terms of regulation. He noted that Belgium's ban on heated tobacco products was due to equating them with traditional cigarettes, while countries such as Japan, Greece, Italy, and Portugal have promoted the development of heated tobacco products through reasonable regulatory frameworks and tax policies.

According to the financial data released by Philip Morris International (PMI) by the end of 2024, the company's sales of heated tobacco products in Spain increased by 18.7% year-on-year, while sales of traditional cigarettes decreased by 3%. However, traditional cigarettes still hold a market share nearly 10 times that of heated tobacco products. Hannes Pierl, a spokesperson for PMI, stated that the market for heated tobacco products has rapidly developed in Spain over the past two years and still has great potential for the future.

The tobacco sales model in Italy is similar to that of Spain, with tobacco products being sold through tobacco specialty shops and advertising being restricted. However, the regulations in Italy do not clearly equate heated tobacco products with traditional cigarettes. The Spanish Ministry of Health approved a "Anti-Smoking Plan" last year, which pointed out that heated tobacco products are trying to attract consumers by emphasizing their lower harm compared to traditional cigarettes.

Philip Morris International (PMI) has set a target for 66% of its sales to come from non-traditional cigarette products by 2030. By the end of 2024, this figure is expected to be at 40%, with even higher numbers in the European market. Hanan Perl believes Europe will be the first region to achieve the 2030 target, but he also emphasizes the significant regulatory differences among the 27 member countries of the European Union.