PMFTC gears for 2025’s double-digit growth

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

In an interview, Gijs de Best, president of PMFTC, said the Philippines, one of its 96 markets for IQOS, already has roughly 150,000 users and has been growing since it was launched in the country five years ago.

“With the five years of operation, we now have close to 150,000 users. It’s very promising. For the demographics, we see classes A, B and C are our users who are members of one social club, and there are more male users than female,” he said during a media interview held at La Piazza, Okada Manila last Friday.

He said Indonesia represents the biggest market for IQOS because there are 60 million smokers there, while the Philippines has only 15 million.

IQOS was officially launched in the Philippines in 2020. However, its entry into the market coincided with the onset of the Covid-19 pandemic — a period marked by widespread uncertainty and operational hurdles.

There was also a stall, partly due to a lack of awareness, and that is what the company is focusing on.

He said they earned the current market share by means of word of mouth, with one user recommending the brand to a friend who is also a smoker.

De Best said IQOS mainly helps the public resolve the misconception about smoking.

“People don’t (really) understand what the problem is related to smoking because in the Philippines, 60 percent of people believe that nicotine is the most harmful ingredient, which it is not. It’s the burning that is causing the issue. Simply, when you use a cigarette, once it is lit, harmful chemicals are released. What our technology is all about is heating, not burning. There is no burning process,” he said.

On its website, Philip Morris said heated tobacco products heat real tobacco instead of burning it. This is an important difference between these smoke-free products and cigarettes. Because they don’t burn the tobacco, these products are smoke-free, producing a nicotine-containing aerosol that is fundamentally different from cigarette smoke.

“Importantly, these products are not risk-free and provide nicotine, which is addictive, but our science shows they are a better choice for adults than continuing to smoke cigarettes,” the website stated. Aside from hitting its target, De Best said they are eyeing to build understanding and awareness among customers.

Last year, PMI, the parent company of PMFTC, inaugurated its P8.8-billion manufacturing facility in Tanauan City, Batangas which is targeted to boost the production of smoke-free products, such as the IQOS and Bonds brands.