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  • Malaysia’s Illicit Cigarette Market at ‘Critical Stage’

    Malaysia’s Illicit Cigarette Market at ‘Critical Stage’

    Malaysia’s illicit cigarette market is approaching a “critical stage,” with illegal products now accounting for roughly 50% of total consumption, according to industry representatives. Philip Morris International and Japan Tobacco International executives said the country’s illicit rate is among the highest in the region, far exceeding levels in markets such as Singapore and Thailand, and warned that widespread availability has normalized illegal purchasing among consumers.

    Industry speakers linked the surge to a sharp excise tax increase in 2015, which widened the price gap between legal and illicit products and drove illegal market share to as high as 63% at its peak. Officials and stakeholders emphasized that addressing the issue will require a coordinated approach combining stronger enforcement, policy adjustments and greater public cooperation, as smuggling networks continue to adapt and exploit regulatory gaps.

  • Eight in ten adult smokers back risk-based tobacco regulation amid South Africa’s policy debate

    Eight in ten adult smokers back risk-based tobacco regulation amid South Africa’s policy debate

    Survey shows scientific evidence and local sentiment align: accurate information, proportionate regulation and access to scientifically substantiated smoke-free alternatives could accelerate South Africa’s progress away from cigarettes

    As South Africa debates new tobacco control legislation, new research by independent firm Povaddo shows that many smokers believe regulation should evolve with scientific evidence to better support adult smokers who do not quit altogether to move away from cigarettes.

    The findings form part of a broader multi-country survey conducted across several markets, revealing a consistent global trend: adult smokers are more likely to consider switching away from cigarettes when they have access to accurate information, and affordable alternatives supported by proportionate, risk-based regulation.

    An international survey commissioned by Philip Morris International (PMI) and conducted by independent research agency Povaddo in multiple countries including key markets in Europe, Latin America and Asia reveals that a majority of adult smokers across these regions share similar views mainly that innovation in smoke-free alternatives, combined with supportive policy frameworks, can accelerate declines in cigarette use. Moreover, respondents across the countries surveyed believe progress happens faster when governments, public health authorities and industry collaborate.

    The survey of adult smokers in South Africa found that eight in ten support risk-based regulation, where less harmful nicotine alternatives are regulated differently from cigarettes. Respondents believe this approach could accelerate progress in reducing smoking.

    The study highlights a clear message emerging from the research: many believe tobacco control policies should evolve alongside scientific evidence and provide adult smokers with accurate information about less harmful alternatives.

    Despite decades of tobacco control efforts, smoking remains a significant public health challenge in South Africa.

    The research suggests that 71% of smokers plan to continue smoking, while only 15% say they are interested in switching to smoke-free alternatives in the current regulatory environment.

    With an estimated 9.7 million smokers in South Africa, this suggests around 6.9 million people may continue smoking cigarettes unless policies better support switching for adults who would otherwise smoke.

    The research indicates that policy reform could significantly change this trajectory. In a  regulatory environment where adult smokers have accurate, science-based information on smoke-free alternatives and these products are regulated differently to cigarettes, the number of smokers willing to switch could more than double, potentially enabling up to 3.3 million South Africans to move away from cigarettes.

    This aligns with trends observed in several international markets, including Japan, where enabling regulatory environments have supported higher switching rates and accelerated declines in cigarette consumption, reinforcing the role policy can play in shaping public health outcomes.

    The study also identifies significant awareness gaps around smoke-free alternatives among South African smokers.

    Nearly 44% of smokers are unfamiliar with e-cigarettes, 65% are unfamiliar with heated tobacco products, and 70% are unfamiliar with nicotine pouches, suggesting many smokers lack basic information about smoke-free alternatives to cigarettes.

    Nearly 44% of smokers are unfamiliar with e-cigarettes, 65% are unfamiliar with heated tobacco products, and 70% are unfamiliar with nicotine pouches, highlighting low awareness of smoke-free alternatives among South African smokers. Therefore, the survey suggests that smokers don’t understand that SFPs are potentially much less harmful than cigarettes.

    Cigarette smoke contains more than 6,000 chemicals, around 100 of which are classified by public health authorities as harmful or potentially harmful. These substances are created through the combustion of tobacco – the burning process that is the primary cause of smoking‑related diseases. Nicotine itself, while addictive and not risk‑free, is not the main driver of these diseases. This crucial distinction is often poorly understood, reinforcing widespread misperceptions about the relative risks of smoke‑free alternatives.

    Among smokers not interested in alternatives, 43% cite health risk concerns, often linked to misinformation, while 28% say alternatives are too expensive.

    The research indicates that smokers are open to considering alternatives if the right conditions are in place.

    More than 80% of smokers say affordability and accessibility are key factors when considering smoke-free products.

    Specifically:

    • 82% say alternatives should be cheaper than cigarettes
    • 82% want them to be easily available in stores
    • 80% want product information at the point of sale
    • 78% want risk-reduction information to help them make informed choices

    These findings suggest that providing accurate information and improving access to science-based alternatives could play an important role in helping adults who would otherwise continue smoking, transition away from cigarettes.

    The research also highlights concerns among smokers about the potential unintended consequences of overly restrictive policies.

    Around three-quarters of respondents believe strict bans on smoke-free alternatives could push smokers toward cheaper illicit tobacco or nicotine products instead.

    Respondents also indicated that a regulatory approach recognising differences in risk between products could help reduce smoking while limiting the growth of illicit markets.

    Taken together, the findings point to a clear opportunity for South Africa: a modernised, evidence-based regulatory framework that differentiates between products, expands access to scientifically substantiated smoke-free alternatives, and prioritises accurate information could significantly accelerate the decline of cigarette use amongst adults who would otherwise smoke.

    Sensible regulation is needed – regulation that recognises the role scientifically substantiated smoke-free alternatives can play in helping adult smokers who would otherwise smoke to move away from cigarettes, while maintaining strong protections for youth and non-smokers.

    ends

    About the study

    The findings are based on a survey conducted by independent research firm Povaddo between 28 March and 10 April 2025 among adult smokers in South Africa, examining perceptions of tobacco regulation, smoke-free alternatives and willingness to switch away from cigarettes.

  • PMI Warns Middle East Conflict Will Spur Illicit Trade in Asia

    PMI Warns Middle East Conflict Will Spur Illicit Trade in Asia

    Philip Morris International warned that the continuing conflict in the Middle East could disrupt supply chains and drive a surge in illicit cigarette trade across Southeast Asia. The company said past disruptions, such as during the COVID-19 pandemic, led to sharp increases in illegal market share, with illicit trade in the Philippines rising from 6% to 17%. PMI estimates governments in the ASEAN region are already losing around $4 billion annually in cigarette excise revenue, with an additional $2 billion lost from illegal vaping products.

    PMI called for stronger regional coordination to address the issue, including real-time sharing of customs data among ASEAN countries to better track illicit flows. The company said supply constraints and regulatory gaps create opportunities for illegal operators, and urged policymakers to adopt more unified enforcement strategies as the Philippines chairs ASEAN this year.

  • PMI Calls for Lower Cigarette Taxes in Meeting With Australian Govt

    PMI Calls for Lower Cigarette Taxes in Meeting With Australian Govt

    Philip Morris used a closed-door Australian Senate hearing on illicit tobacco to argue that high excise taxes are driving consumers toward the black market and called for lower cigarette prices to restore legal sales. According to a released transcript, company representatives said taxes account for at least A$34 of a A$37.95 pack ($24.48 of $27.32), while illicit cigarettes can sell for as little as A$12 ($8.64), contributing to an illicit market estimated at 50–60% of total sales, or A$4–A$7 billion ($2.8–$5 billion).

    The company told lawmakers that narrowing the price gap between legal and illegal products could help shift consumers back into regulated channels, citing price, access, and enforcement as key drivers of illicit trade. The hearing, which was initially held in private, drew criticism from public health advocates who said it “ran counter to an international treaty Australia signed up to in the mid-2000s,” while government officials defended the decision to include industry input in the inquiry.

  • PMI Talks Illicit Trade, Tobacco Reforms in Pakistan

    PMI Talks Illicit Trade, Tobacco Reforms in Pakistan

    Pakistan’s Federal Minister for Commerce Jam Kamal Khan met with a delegation from Philip Morris International to discuss challenges in the country’s tobacco sector, with a focus on illicit trade, regulatory gaps, and export potential. The delegation highlighted that an estimated 45–47 billion untaxed cigarettes are sold annually, contributing to revenue losses of around Rs350 billion ($1.3 billion) and creating competitive pressure on the formal sector. Discussions also addressed weaknesses in supply chain oversight, including tobacco leaf procurement and limited traceability, which enable informal manufacturing.

    Officials emphasized the need for stronger, coordinated enforcement across federal and provincial authorities, noting that existing regulations are often inconsistently applied. The role of the Pakistan Tobacco Board and broader policy challenges linked to IMF-related trade reforms were also reviewed, with both sides agreeing to continue collaboration on measures to improve compliance, strengthen monitoring systems, and support formal sector growth.

  • PMI’s Net Revenue Tops $40B for 2025

    PMI’s Net Revenue Tops $40B for 2025

    Philip Morris International highlighted strong financial performance and continued growth in its smoke-free portfolio during its 2026 Annual Meeting, reporting net revenues exceeding $40 billion in 2025, including nearly $17 billion from smoke-free products. The company said it delivered its fifth consecutive year of volume growth and remains focused on expanding its smoke-free business, which now accounts for a significant share of total revenues and is used by more than 43 million adult consumers globally.

    PMI reaffirmed its outlook for continued growth through 2026–2028 and its commitment to shareholder returns, while noting ongoing investments in innovation and regulatory progress for alternative products. The company also pointed to a complex operating environment, including regulatory pressures, geopolitical risks, and shifting consumer behavior, but said its performance in early 2026 supports confidence in achieving its long-term strategy.

  • Forbes Includes PMI Near Top of Net Zero Leaders List

    Forbes Includes PMI Near Top of Net Zero Leaders List

    Philip Morris International was named to Forbes’ 2026 Net Zero Leaders list, which recognizes U.S.-listed companies demonstrating measurable progress toward achieving net zero emissions. PMI ranked first in the fast-moving consumer goods category and fourth overall, based on assessments of governance, risk management, decarbonization performance, and financial resilience using data from Sustainalytics and Morningstar.

    The company reiterated its target to reach net zero greenhouse gas emissions across its value chain by 2040, ahead of the 2050 benchmark used by most companies. Recent milestones cited include the launch of its Value Plan 2030+, publication of an updated Climate Transition Plan, and continued progress toward science-based emissions reduction targets validated by the Science Based Targets initiative.

  • PMI Announces FDA Reauthorization of IQOS as MRTP

    PMI Announces FDA Reauthorization of IQOS as MRTP

    Today (April 29), Philip Morris announced that it has received renewed Modified Risk Tobacco Product (MRTP) authorizations from the U.S. Food and Drug Administration for its IQOS heated tobacco devices and associated HEETS consumables. The renewal covers two IQOS device versions and three HEETS variants, allowing the company to continue communicating reduced-exposure information to adult smokers in the U.S. The FDA said the decision is appropriate for the protection of public health, citing evidence that switching completely from cigarettes to IQOS significantly reduces exposure to harmful chemicals.

    The agency reaffirmed that available scientific evidence supports a measurable and substantial reduction in harm compared to combustible cigarettes, even without long-term epidemiological data. IQOS was first authorized through the FDA’s premarket pathway in 2019, with its initial MRTP designation granted in 2020 and expanded in subsequent years. The renewed orders maintain PMI’s position as the only company with MRTP authorizations for heated tobacco products in the U.S.

    The authorization applies to the IQOS 2.4 and IQOS 3 systems, along with HEETS Amber, Green Menthol and Blue Menthol variants. PMI said the decision supports its ongoing strategy to transition adult smokers away from cigarettes, as the company continues to invest in and expand its smoke-free product portfolio while awaiting further regulatory review of newer devices.

  • Philip Morris Korea Appoints New Managing Director

    Philip Morris Korea Appoints New Managing Director

    Philip Morris Korea named Lee Hong-suk as its new managing director, effective May 1, as the company continues to advance its smoke-free product strategy in the country. Lee, who has been with Philip Morris International since 1999, has held senior roles across multiple markets and most recently led the company’s smoke-free products division in Korea.

    In his new role, Lee will oversee operations in one of PMI’s key markets for alternatives such as IQOS, with a focus on expanding the company’s presence and engagement with stakeholders. The company said Lee will be essential as it continues to prioritize smoke-free product development and commercialization in the Korean market.

  • PMI Schedules 2026 Annual Shareholder Meeting

    PMI Schedules 2026 Annual Shareholder Meeting

    Philip Morris International announced that it will hold its 2026 Annual Meeting of Shareholders on May 6 at 9 a.m. ET via a live virtual webcast. The meeting will be accessible online, with presentation materials and a replay available for one year following the event.

    Chairman André Calantzopoulos and CEO Jacek Olczak are scheduled to address shareholders and respond to questions, with participation limited to verified shareholders using a control number.