Philip Morris' smoke-free products performed well in Q4 2024, aligning with the company's strategic shift towards reduced risk products (RRPs) and overall growth initiatives.
- Financial Growth: The company has been investing significantly in smoke-free products, with over $14 billion invested since 20081. This investment is likely to have contributed to the growth of its smoke-free business, which aims to achieve more than two-thirds of net revenue from smoke-free business by 20301.
PM Total Revenue YoY, Total Revenue
- Market Expansion: Smoke-free products are available in 95 markets, and the company has made substantial progress in introducing these products in various regions, including Indonesia, which is a key market2. This expansion into new markets and increased availability in existing markets likely drove sales growth in Q4 2024.
- Product Innovation: Philip Morris has been innovating across multiple categories of smoke-free products, including heated tobacco devices (IQOS), nicotine pouches (ZYN), and vapes (VEEV)2. The success of these innovative products in attracting smokers who have not quit smoking and in increasing the number of adult smokers who have switched from cigarettes to smoke-free products12 indicates a strong performance for these products in Q4 2024.
- Corporate Commitment: The company's commitment to delivering a smoke-free future is evident in its CEO's statement that by 2030, the company aims to have more than two-thirds of its net revenue come from smoke-free business, currently at 40%1. This long-term vision suggests a strategic focus on sustained growth in smoke-free products.
In conclusion, Philip Morris' smoke-free products likely continued to grow in Q4 2024, driven by significant investment, market expansion, product innovation, and the company's strong commitment to transitioning towards a smoke-free future.