Philippines DTI Encourages HTP Production for Increased Opportunities
According to Philippine News Agency, the Department of Trade and Industry (DTI) is urging tobacco companies to produce heat-not-burn products (HTPs) in the Philippines. This call comes as a result of the increasing demand and export opportunities for such products within the country.
During the International Tobacco and Agriculture Summit held on August 2nd, Deputy Minister of the Department of Trade and Industry (DTI), Ceferino Rodolfo, stated that despite the projected decrease in local demand for cigarettes in the Philippines from 49.61 billion units in 2022 to 39.06 billion units in 2027, there is expected to be a significant increase in sales of heated tobacco products during the same period.
According to his citation of Euromonitor International's forecast, the retail sales volume of heat-not-burn products is projected to increase by 511% to reach 4.06 billion units by 2027.
Rudolf stated that companies producing non-combustible heating products will benefit from the Philippines' free trade agreements with the regional market. "If non-combustible heating products are manufactured in the Philippines, they can be exported to ASEAN (excluding Vietnam), Australia, New Zealand, Japan, South Korea, and Hong Kong with zero tariffs," he said.
According to data from 2022, the key export destinations for Philippine tobacco products include South Korea ($102.2 million), Thailand ($98.29 million), and Myanmar ($49.4 million).
According to Rudolf, it has been revealed that Philippine Femons Tobacco Company is planning to construct a factory in Tanauan City of Batangas Province, with an estimated investment of 9 billion pesos. The purpose of this facility is to manufacture IQOS devices.
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