PMI South Korea: NTP Make Up 40% of Sales, IQOS Drives Growth

Key points:

1. New tobacco products (NTP) such as IQOS account for 40% of PMI's total sales, with a global user base of 38.6 million, including 32.2 million IQOS users.

2. Philip Morris International new tobacco products are sold in 95 countries, with the top five markets without combustion businesses contributing 60% of sales, thanks to the development of IQOS and Terea.

3. PMI aims to increase the proportion of its new tobacco business to more than two-thirds by 2030, with approximately $14 billion invested since 2008.

Data released by PMI South Korea branch in the fourth quarter of 2024 showed that the net sales of new tobacco products, such as IQOS, accounted for 40% of the company's total sales, N.News reported.

In the main markets operated by PMI, the top five markets for non-combustible products contributed 60% of the market's sales.

It is belived that this growth can be attributed to the rapid development of heated tobacco devices such as IQOS and its proprietary pod brand Terea. By the end of 2024, PMI's sales of new tobacco products had expanded to 95 countries. 

The number of global users of PMI's new tobacco products increased by 5.3 million compared to the previous year, reaching 38.6 million. Among them, the number of IQOS users reached 32.2 million. It is estimated that 72% of users will completely switch from traditional cigarettes to IQOS.

Based on the growth trend, PMI plans to increase the net sales proportion of its new tobacco business to more than two-thirds of overall sales by 2030. Since 2008, PMI has continuously increased its investments in smokeless product development, scientific research, and commercialization. By the end of 2024, the cumulative investment amount has reached approximately $14 billion.

A representative of PMI Korea said:

"The continued growth of new tobacco products such as IQOS is accelerating the realization of a "smoke-free future" vision. We will strive to help adult smokers who wish to continue smoking switch to alternative products like IQOS as soon as possible through the latest and innovative IQOS Iluma i series."