The number of smokers switching to heated tobacco is increasing, with 28 million ex-smokers currently using the best-known system, IQOS, manufactured by the tobacco company Phillip Morris. At the same time, cigarette sales are falling.
"Our goal is to have 50% of our revenue coming from smoke-free products by 2025. In 25 countries we have already reached that goal." Says Tommaso Di Giovanni, Deputy Head of Communications at Philip Morris.
Philip Morris presented its annual report on sustainability, harm reduction and illicit markets at a press conference in Paris this week. Between the numbers and statistics, the tobacco company made no secret of the fact that it considers its efforts to promote smoke-free products in recent years a success.
"We have come from selling only cigarettes. Since 2008, we have invested almost 12.5 billion in developing and creating alternatives to cigarettes and we are now seeing the results." says Tommaso Di Giovanni, Deputy Head of Communications.
Snus has a big impact
Since Philip Morris bought Swedish snus company Swedish Match, the company has taken a big step towards reaching its goal, says Tommaso Di Giovanni. Among the smoke-free customers that PMI keeps track of, snus or nicotine pouches account for about 11%. The rest, however, are IQOS and to some extent e-cigarettes. Japan and some European countries stand out in the statistics.
"We estimate that 33 million of our customers have switched to smoke-free products. 28.6 million use IQOS. In Hungary, for example, IQOS accounts for 30% of revenue. We also see that it is a metropolitan phenomenon, in Vilnius and Rome, for example, sales have increased significantly."
Cigarette sales are falling
PMI has repeatedly pointed out that legislation and communication on smoke-free products play a key role, in addition to company investment in smoke-free nicotine. Tommaso Di Giovanni says this is also clearly visible in the statistics.
"But the nicotine market is huge. In Europe, on average 20% of the population smokes. This is much lower in some countries like Sweden, Norway and the UK and much higher in others, like France."
"WHO tactics are outdated"
In France, more people smoke 30% of the population. This is despite the fact that the country has invested heavily in various forms of restrictions and prevention, not least through sharply increased tobacco taxes. It is one of several tools recommended by the WHO to reduce smoking. The WHO also recommends that legislation should not differentiate between different nicotine products in relation to risk of harm. This is something that Tommaso Di Giovanni and PMI are critical of.
"France has chosen not to distinguish between smoking and smoke-free products in its legislation. Nor does it encourage smokers to choose other alternatives. Instead, it has chosen to raise taxes. Smoking has not declined, but instead a third of cigarette sales have moved to the black market. One in ten cigarettes in France is illegal." says Tommaso Di Giovanni.
"Learn from the countries that succeed"
According to Tommaso Di Giovanni, countries such as France, and by extension the WHO, should instead learn from the countries where smoking is falling fastest.
"Cigarette sales have declined fastest in countries where alternatives are allowed and even encouraged. Sweden is a good example of this working, although the importance of snus is very much a local tradition. But the UK is also leading the way by actively encouraging smokers to switch to e-cigarettes. There, smoking is down to 14%. This compares to 30% in France, which has chosen not to even allow retailers to properly inform customers about the products.
"Important to distinguish smoking from non-smoking"
At the same time, Tommaso Di Giovanni highlighted Greece as a pioneer together with Sweden in the EU.
"Greece was the first to clearly differentiate between smoke-free and smoking products in its legislation. Sweden has not done this, but will instead reduce the tax on snus while increasing it on cigarettes. These are measures that matter and have a positive impact on smokers' behavior."
