【1、Philip Morris set to debut IQOS in Austin, Texas, marking its U.S. market entry and shift towards healthier alternatives to cigarettes.
2、Texas chosen for its diverse demographics and favorable regulatory environment, presenting a significant market opportunity for PMI to compete with vaping alternatives.
3、PMI aims for IQOS to secure 10% of U.S. tobacco market share by 2030, reflecting its commitment to smoke-free products and aggressive lobbying efforts nationwide.】
Philip Morris International plans to introduce IQOS, its leading heated tobacco device, in Austin, Texas. This marks its first step into the U.S. market, as indicated by recent job postings on LinkedIn.
The company aims to shift focus from cigarettes to healthier alternatives, with IQOS being pivotal in this transition.
Investors are eager to see how Philip Morris fares in establishing a market for heated tobacco in the U.S., where vaping dominates.
The U.S. market presents a lucrative opportunity for Philip Morris to attract new consumers and generate substantial revenue from non-cigarette products.
Philip Morris has invested significantly in developing IQOS, allocating a substantial portion of its $10.7 billion budget for smoking alternatives between 2008 and 2022.
Although initial plans were vague, recent job postings suggest Philip Morris is preparing for an IQOS launch in Austin, Texas.
The success of IQOS in the U.S. market is crucial given the size of the industry, with total nicotine sales reaching $143.6 billion in 2022.
IQOS and similar products aim to reduce harmful chemicals associated with burning tobacco by heating it without combustion.
While heated tobacco products have had minimal presence in the U.S., PMI aims to change that by marketing IQOS, acquired from Altria in 2022 for $2.7 billion.
Texas serves as an intriguing trial market due to its diverse demographics and relatively low tobacco taxes compared to other states.
PMI envisions IQOS capturing a significant share of the U.S. tobacco market by 2030, demonstrating its ambitious plans for the product’s performance.
In preparation for IQOS’ launch, Philip Morris is ramping up its lobbying efforts across the U.S., aiming for a substantial portion of its revenue to come from smoke-free products by 2030.
【Reference】Exclusive-Philip Morris nears Texas launch of flagship heated tobacco device
