PH
MANILA, Philippines — Philip Morris International (PMI) is looking to accelerate the adoption of its smoke-free products in the Philippines as the portfolio accounts for 43% of its global net revenues, bringing the ******* giant closer to its 2030 target.
Tommaso di Giovanni, PMI vice president for communications and engagement, said the company continues to gain ground since reporting that smoke-free products accounted for 40% of its net revenues in April 2025.
“Actually, our journey continues and continues successfully to the point that we're already at 43% of net revenues coming from smoke-free products today, according to the latest figures,” Di Giovanni said on the sidelines of the Technovation: Smoke-Free by PMFTC summit at the Manila Marriott Hotel in Pasay City on Tuesday, November 10.
He said the company's progress should also be measured by the number of smokers shifting to smoke-free products, alongside the declining sales of traditional *********s.
“We see the share of smoke-free products growing daily in many countries, and at the same time, we see ********* sales declining,” he said.
“But this is only part of the success. I think the success of our vision is measured by the adoption from people who smoke and who are transitioning to smoke-free products,” Di Giovanni said.
He said the shift in consumer behavior is a more important measure of the company's progress than revenue figures alone.
“To me, that's the biggest measure of success, even bigger than net revenues, because that's when we can measure positive impact on society and potentially public health,” he said.
Market-specific approach
Di Giovanni said understanding consumer behavior is key to how PMI develops and introduces its smoke-free products, saying that preferences differ across countries.
“It's key to understand what consumers look for, what they like and what their behaviors are so we can offer solutions that are targeted to them,” he said.
This is why the company does not necessarily commercialize the same products in the same way across markets. It also tailors its communications to the specific country where its products are sold.
Di Giovanni cited the preference for e-*********s in the United Kingdom and heated ******* products in Japan. Consumers in Italy, meanwhile, are likely to favor a mix of alternatives.
In the United States, he said, there is a strong preference for oral smokeless products such as ZYN.
The Philippines, he added, has its own consumer preferences that the company needs to understand.
This has led PMI to develop a portfolio of products rather than rely on a single alternative to *********s.
“A one-size-fits-all approach doesn't work,” Di Giovanni said.
He said understanding these differences is important in determining which products and communications to prioritize in each market.
“It's important to understand these nuances; otherwise, we may not have the right focus,” he said.
Local push
Di Giovanni said PMI is seeing traction for IQOS and ZYN in the Philippines but acknowledged that more needs to be done to encourage smokers to shift away from conventional *********s.
About 14 million Filipinos continue to smoke, showing how much work remains in moving smokers away from conventional *********s.
“There's certainly traction in the Philippines with IQOS, but also with ZYN at the moment. So, we see momentum, absolutely. But I think there's a lot more that can be done,” he said.
He said consumer education is important in helping smokers understand the differences among conventional *********s, e-*********s, heated ******* products and oral nicotine pouches.
“The country has progressive legislation already for a few years. I think a clear and consistent message needs to be shared with them,” he said.
Di Giovanni acknowledged that smoke-free products are not risk-free, while maintaining that they expose users to lower levels of harmful compounds than conventional *********s.
He also said quitting ******* and nicotine use altogether remains the best option for those concerned about their health.
The company's Philippine operations are covered by Republic Act No. 11900, or the **** Regulation Act, which regulates the sale, distribution, advertising and use of vapor and novel ******* products. Republic Act No. 11467 also imposes excise taxes on heated ******* and vapor products.
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Date posted: 2026-11-14T18:24:00+08:00