Philip Morris International launches IQOS in Austin, targets 2030 market share

Key points:

• Philip Morris International (PMI) officially launched its heated tobacco device, "IQOS," in Austin, Texas on March 27th, with a price of $60 and pods priced at $8.
• PMI aims to occupy 10% of the cigarette and heated tobacco market share in the United States by 2030.
• The IQOS has successfully undergone market testing in Austin and will now be promoted through various channels.

According to a report from Reuters on March 28, a senior executive at Philip Morris International (PMI) revealed that PMI officially launched its heated tobacco device "IQOS" in Austin, Texas on Thursday (March 27). Each device is priced at $60.

PMI hopes to capture a 10% market share in the cigarette and heated tobacco products market in the United States by 2030, and establish a large number of new user groups.

Previously in April, PMI revealed plans to launch "IQOS" in Austin, but this product has not yet been widely sold in the US market.

PMI announced that after successful market testing, "IQOS" will now be available to residents of Austin of legal smoking age, and there will be product demonstrations and trial events during the MotoGP Red Bull Grand Prix of the Americas in Austin. The IQOS device is priced at $60, with pods priced at $8 each.

Vice president and chief marketing officer, inhalables at PMI U.S, Francisca Rahardja, stated that in order to attract new consumers, PMI is selling IQOS at prices lower than in other markets in the United States. The product will be sold in pop-up shops and mobile stores, including one store that will be placed in downtown Austin for several months.

Rahardja pointed out that PMI has signed contracts with about 15 adult-only venues, such as bars, where mobile sales cars and "IQOS coaches" will be deployed to promote the product and educate consumers on its usage, targeting existing nicotine users.

PMI previously announced plans to launch IQOS in four cities across two states, but currently only the release in Austin has been confirmed.

The company is currently limited to launching the old version of the IQOS device in the United States, while waiting to obtain authorization to sell the latest version, the "IQOS ILUMA", in the US. The US FDA is reviewing Philip Morris International's (PMI) application for the "IQOS ILUMA". The FDA had previously approved PMI to sell the older version of the device, touting its ability to reduce smokers' exposure to harmful chemicals.

In 2024, a group of health advocates wrote a letter to the FDA opposing PMI's application related to IQOS.