PMI's Heated Tobacco Products Underperform in Spain

Philip Morris International's (PMI) heated tobacco products are failing to meet expectations in the Spanish market, accounting for only 5% of total revenue, according to the Spanish news site El Periódico. Massimo Andolina, President of PMI Europe, disclosed that of the 9 million smokers in Spain, merely 300,000 use heated tobacco products.

Since announcing in 2016 its plans to halt the production of traditional cigarettes in favor of new tobacco products, PMI has aimed to generate over 50% of its income from smoke-free products by 2025. Currently, 35% of its revenue comes from these products, and it has achieved its goal in 17 global markets, including Denmark, Italy, and Japan. However, Spain remains a challenging market.

Andolina blamed the Spanish government's ban on information about heated tobacco products to consumers for the lackluster performance. He suggested that Spain should learn from its neighbor Portugal, where PMI has an innovation center, and which despite its strict regulations, recognizes alternative products as better than traditional cigarettes.

In 2022, PMI sold 13.6 billion cigarettes and heated tobacco products in Spain, a 3.2% increase from the previous year, with heated tobacco sales reaching 900,000 units. However, of the 9 million smokers in Spain, only 300,000 use heated tobacco products. PMI's heated tobacco product IQOS has 25.8 million users worldwide, but according to the Spanish Ministry of Health, there is no evidence to suggest that heated tobacco products are less harmful than traditional ones.

Thumbnail source: PMI