21.2 M People Globally Have Switched From Cigarettes to IQOS

Philip Morris International announced its 2021 fourth-quarter and full-year results. The leader in the transformation of the tobacco industry reported an increase of 1.2 points to 6.8% of the market share for heated tobacco units in IQOS markets, excluding the U.S.
The trend for 1/3 of the company revenues to come from smoke-free products has been maintained, while the total IQOS users at the end of 2021 is estimated at approximately 21.2 M (an increase of about 800,000 in the last quarter), of whom approximately 15.3 M have switched to IQOS and stopped smoking.

The leading smoke-free platform of Philip Morris International is available in 71 markets and the company has the ambition to increase that number to 100 by 2025.

“Our business delivered excellent performance in 2021, with strong underlying momentum driving total volume growth, high single-digit organic net revenue growth and double-digit adjusted diluted EPS growth against the pandemic-affected prior year. We were especially pleased by the reacceleration of our business in the fourth quarter to deliver better-than-expected results. This included a step-up in sequential IQOS user growth, as well as essentially stable category share for cigarettes in the quarter, as our portfolio initiatives bore fruit and pandemic-linked restrictions receded in many markets. We enter 2022 with strong fundamentals, underpinned by IQOS, and exciting innovation to come across our broader smoke-free product portfolio. We are forecasting organic top-line growth of 4% to 6%.”, said Jacek Olczak, Chief Executive Officer of Philip Morris International.

15.3 million of 21.2 M have fully converted to the smoke-free alternative offered by Philip Morris International and have stopped smoking,

Source: PMI

In addition to expanding the smoke-free category with new products, last year Philip Morris International made it clear that it sought to enter the therapeutics market as part of its Beyond Nicotine Strategy by completing the acquisition of 3 pharmaceutical companies. The company plans to generate at least USD1 billion from manufacturing and commercialization of modern therapeutics and well-being products by 2025. The expansion into new business territories started with the acquisition of the Danish company Fertin Pharma specialized in the production of pharmaceutical products based on oral and intra-oral delivery systems – tablets, gums, etc.

It was followed by the acquisition of the US-based ОtіТоріс, known for its innovative late-stage inhalation treatment for acute myocardial infarction. Early clinical trials have shown that the effect of the inhalable product is much faster – 2 minutes compared with 20 minutes for coated chewable aspirin. In September 2021 the company acquired 75% of the shares of the leading British pharmaceutical company for inhaled drug solutions Vectura.