PMFTC aims for double-digit growth in 2025

The management of PMFTC Inc., the Philippine subsidiary of Philip Morris International (PMI), said they are targeting double-digit growth this year for IQOS, its heated tobacco product.

In an interview, Gijs De Best, President of PMFTC, revealed that the Philippines—one of IQOS’s 96 markets—already has roughly 150,000 users and has seen steady growth since its launch five years ago.

“With five years of operation, we now have close to 150,000 users. It’s very promising. Our users come from social classes A, B, and C, often members of one social club, with more male than female users,” he said during a media interview held last Friday at La Piazza, Okada Manila.

De Best noted that Indonesia remains the largest market for IQOS due to its 60 million smokers, compared to the Philippines’ 15 million.

IQOS was officially launched in the Philippines in 2020, but its market entry coincided with the onset of the COVID-19 pandemic, which caused widespread uncertainty and operational challenges.

The product’s growth also stalled partly due to a lack of awareness, a hurdle the company is actively addressing.

According to De Best, much of their current market share was earned through word of mouth, with existing users recommending IQOS to fellow smokers.

He explained that IQOS helps clarify common misconceptions about smoking.

“Many people don’t fully understand the real issue with smoking. In the Philippines, 60 percent believe nicotine is the most harmful ingredient, which it is not. The problem is the burning. When a cigarette is lit, harmful chemicals are released through burning. Our technology heats tobacco without burning it, so there’s no combustion process,” he said.

Philip Morris’s website explains that heated tobacco products heat real tobacco instead of burning it—making these smoke-free products fundamentally different from cigarettes. Since tobacco is not burned, they produce a nicotine-containing aerosol rather than smoke.

“Importantly, these products are not risk-free and deliver addictive nicotine, but our science shows they are a better choice for adults than continuing to smoke cigarettes,” the website states.

Aside from growth targets, De Best said the company aims to build better understanding and awareness among customers.

Last year, PMI inaugurated its P8.8-billion manufacturing facility in Tanauan City, Batangas, designed to boost production of smoke-free products such as IQOS and Bonds.

The multinational is shifting toward producing smoke-free alternatives for smokers who would otherwise continue smoking cigarettes.