Jacek Olczak, Chief Executive Officer of Philip Morris International Inc., outlined the need for common-sense regulations in the consumer goods sector while addressing global leaders at Semafor’s annual World Economy Summit in Washington, D.C., on April 25, 2025. Olczak emphasized the sector’s potential for innovation-led growth despite the volatile economic environment. He stressed, however, that without appropriate regulation and policy frameworks to enable scientific evaluation and consumer access, promising breakthroughs—such as innovations in wellness, food, and personal care products—could become missed opportunities.
“Disparities in nicotine regulation are creating a global divide with profound health and economic impacts,” Olczak said. “Some countries that have prohibited smoke-free products are seeing higher smoking rates persist, while many of those whose policies encourage smokers to make better choices are advancing away from cigarettes more quickly. As a result, we are already starting to see nations where smoking has significantly declined while others unnecessarily continue to experience smoking rates of 20%, 30% or higher.”
According to PMI, more than 190 million smokers in more than 20 markets—nearly 20% of smokers globally—have no legal access to smoke-free products, while cigarettes—the most harmful way to consume nicotine—are available on the market. This stagnation persists despite the introduction of advertising bans, high excise taxes, plain packaging, and a complete flavor ban on cigarettes.
“Innovation needs to be accessible and impactful,” Olczak said. “At PMI, we have invested heavily, innovated continually, and transformed our business model to replace cigarettes with better, smoke-free alternatives, which as of Q1 2025 represent 42% of our global net revenues—up from zero a decade ago. It is imperative that countries worldwide adopt policy frameworks that keep pace with these innovations to deliver on the promise of progress.”
