At the 2024 Technovation event in Abu Dhabi, Stefano Volpetti, President of Smoke-Free Inhaled Products and Chief Consumer Officer at Philip Morris International (PMI), shared insights into the company’s journey toward a smoke-free future.

• PMI has transitioned from zero to 38% smoke-free revenue in just a decade, with a bold target of surpassing 66% by 2030.
• Countries like Japan and Sweden showcase the potential of smoke-free products, with smoking rates halving or more in just a few years.
• PMI has prioritised accessibility and affordability, ensuring smoke-free alternatives cater to diverse markets without mass advertising.
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Philip Morris International (PMI) is a leading multinational tobacco company with a presence in over 180 countries, widely known for its flagship cigarette brand, Marlboro. Often grouped among the giants of “Big Tobacco”, the industry has historically faced significant scrutiny. With nicotine’s addictive properties and the harmful toxins released by burning tobacco, the industry’s legacy has been vexed.

Alongside Abu Dhabi’s 2024 Technovation event, Stefano Volpetti, President of Smoke-Free Inhaled Products and Chief Consumer Officer at Philip Morris International (PMI), outlined a bold vision for the future of smoking – or lack thereof. This new mantra sets the tone for the companies drive to replace cigarettes with scientifically substantiated smoke-free alternatives. However, achieving this ambitious goal isn’t without its challenges. Stefano highlighted three core pillars driving PMI’s mission: regulatory frameworks, market penetration, and targeted consumer education.

PMI’s expansion into 92 global markets has revealed a key determinant of success – regulation. Stefano emphasised the critical role of comprehensive regulatory frameworks in defining smoke-free products, ensuring scientific substantiation, and implementing robust youth access prevention policies. Stefano highlights that where smoke-free products are permitted, cigarette consumption declines, contrasting this with countries like Turkey and India, where bans on smoke-free alternatives have coincided with rising cigarette consumption.

The example of Japan stands out. In just five years, smoking prevalence in the country has halved, dropping from 20% to 10%, thanks to smoke-free products. Similarly, Sweden, which embraced oral nicotine alternatives two decades ago, now boasts some of the lowest smoking rates globally, with female smoking incidence at just 2%.

How does PMI gauge its shift from traditional cigarettes to smoke-free alternatives? Stefano outlined three key metrics:
1. Revenue from Smoke-Free Products: PMI has transitioned from earning 0% of its revenue from smoke-free products a decade ago to 38% today. The goal is to surpass 66% by 2030.
2. Number of Smoke-Free Users: Over 36 million adult smokers have already adopted PMI’s smoke-free alternatives.
3. Conversion Rates: Impressively, 72% of smokers who try PMI’s smoke-free products quit cigarettes entirely.

These metrics highlight significant progress but also underscore the work ahead to achieve PMI’s ambitious 2030 goals. PMI has faced scrutiny for its association with popular figures like Steve Aoki, raising concerns about inadvertently appealing to younger audiences. However, Stefano was quick to clarify.

Steve Aoki is 47 years old, with an average social media followership age of 30. Entry to events featuring our products is strictly limited to legal-age smokers, and rigorous age verification ensures compliance.

// President of Smoke-Free Inhaled Products and Chief Consumer Officer at Philip Morris International (PMI), Stefano Volpetti

He emphasised PMI’s stringent marketing code, aimed at targeting only adult smokers. External data from countries with mature smoke-free markets, like Japan and the U.S., further supports PMI’s claims of negligible uptake among underage users. In countries like South Africa, where advertising for nicotine products is banned, PMI has pivoted to direct, one-on-one consumer engagement.

This hands-on approach involves educating adult smokers about available options, offering multiple smoke-free categories—heated tobacco, oral smokeless products, and e-vapes—and ensuring price accessibility across diverse income brackets. Stefano pointed out that smoke-free products are often cheaper than cigarettes, thanks to taxation policies favoring less harmful alternatives. This price advantage, coupled with diverse product offerings, enables PMI to cater to smokers from various economic backgrounds.

Introducing new categories of smoke-free products is not a one-size-fits-all endeavour. PMI begins by establishing awareness in modern retail channels before expanding into broader markets. This phased approach ensures that consumers understand the legitimacy and benefits of these alternatives. In culturally diverse markets like South Africa, PMI’s strategy aligns with local economic realities. By offering tiered pricing and products tailored to different preferences, PMI aims to make smoke-free alternatives accessible to all adult smokers.

As Technovation 2024 spotlighted cutting-edge innovations, PMI’s commitment to a smoke-free future stood out as a compelling blend of technology, public health, and market strategy. With over 36-million smokers already transitioned to smoke-free alternatives, PMI’s is bullish about the journey which is well underway. The company’s milestones in countries like Japan and Sweden, believes PMI, serve as proof that a smoke-free future is not just aspirational but achievable.

As the world grapples with the dual challenges of public health and economic equity, PMI’s smoke-free vision offers a possible roadmap—one that balances innovation with responsibility.

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