IQOS Philippines charts path toward smoke-free future

TOKYO — As IQOS Philippines approaches its fifth year, the company has made notable progress with its goal of shifting Filipino smokers toward smoke-free alternatives.

IQOS, a heated tobacco product by Philip Morris International (PMI), is working to expand its reach and influence in the Philippines, with ambitions of a future where traditional cigarettes “will belong to museums.”

Dave Gomez, director of communications at PMFTC Inc., the Philippine affiliate of PMI, told The STAR that IQOS has already captured a 3.8-percent share of the country’s tobacco user market as of second quarter.

“The growth is there. Smokers are beginning to be aware of IQOS and the benefits that it’s a better alternative than continuing to smoke,” Gomez said. “So we’re very happy with the positive trend in the Philippines among smokers who desire to switch to a better alternative.”

PMFTC launched IQOS in June 2020 in Metro Manila. It has since expanded its presence nationwide, offering smoke-free alternatives and encouraging adult smokers to quit traditional cigarettes.

Globally, over 19.7 million smokers in 90 countries abandoned cigarettes completely for heated tobacco.

According to Gomez, the main advantage of using IQOS is that it produces no smoke, no ash and has less smell, eliminating the typical tobacco odor.

“Based on several scientific studies and research from well-renowned medical institutions, smoke-free products like IQOS emit around 90 to 95 percent less of the toxic chemicals that are present in cigarette smoke. So it’s really significantly less harmful than continuing using cigarettes,” he said.

However, there were key challenges in introducing the product to the market. This includes the need to raise awareness within a regulatory framework that limits direct communication with consumers.

Under current Philippine vaping and smoking laws, it is illegal to sell or distribute cigarettes, vape devices and accessories to individuals under 21 years old. Additionally, all advertising, promotions and sponsorships for these products are prohibited.

Gomez said that as a tobacco company, IQOS Philippines must abide by the Tobacco Regulation Act of 2003 and the newer Vape Law, which restrict promotional activities to adult smokers in controlled environments like point-of-sale areas.

“It’s similar to any other market. The primary challenge is awareness of the product and educating our consumers,” he said. “But let me be clear, we do not communicate to non-smokers and to minors. We only communicate to current smokers about IQOS.”

To increase consumer awareness, IQOS employs an omni-channel approach, reaching consumers where legally permissible. It is also crucial to understand their barriers and pain points in using the product.

Moving forward, Gomez said IQOS Philippines is committed to its vision of delivering a “smoke-free Philippines.”

“It’s not a question of if it will happen, it’s now a question of when it will happen. But we will get there. We will reach the time, hopefully soon, when cigarettes will belong to museums,” he said.

He also said that PMFTC would continue to innovate products based on the latest science and technology and meet evolving consumer needs and regulatory standards.

“I see smoke-free products really replacing the cigarettes in the Philippines in the future. And that would be life-changing to the millions of Filipino smokers in the country,” he said.

With a growing market share and supportive regulations, IQOS Philippines finds itself in a relatively favorable position. Gomez said that the Vape Law, passed by Congress, established a regulatory structure that provides the company with operational predictability.

“We’re actually very happy with our lawmakers. The Vape Law provides the regulatory structure for us to introduce our product in the market, for us to communicate to our consumers, and at the same time, protect minors and protect non-smokers from these labor products,” he said.

“We welcome regulation. Regulation is much better than a ban,” he added.

Celebrating 10 years of IQOS in Tokyo

As part of their global commitment to a smoke-free future, PMI launches IQOS Together X in Tokyo Japan. This initiative celebrates 10 years of empowering over 30 million adult smokers — 72 percent of whom have fully transitioned to IQOS.

Stefano Volpetti, PMI president smoke-free inhaled products and chief consumer officer, said PMI is delivering a multi-category portfolio of better alternatives to cigarettes for avid smokers that do not quit.

“From our first launches in 2014, our smoke-free products are now available in 90 markets around the world. We are on track to reach 100 markets by 2025,” he said.

“From less than one percent in 2015, our revenue from PMI’s smoke-free products had grown to account for nearly 40 percent of total net revenue in recent quarters,” Volpetti said.

Shea Lih Goh, president at Philip Morris Japan Ltd, said it is an honor to host the IQOS Together X global event in Japan as it is the birthplace of IQOS in 2014.

“Japan has been leading the delivery of a smoke-free future for the last decade and we are honored to welcome adult consumers from Japan and from markets around the world,” she said.

Goh also said that the heat-not-burn category now represents 40 percent of Japan’s total tobacco market. More than 8.5 million Japanese smokers have chosen IQOS, indicating that one in three smokers now use IQOS in Japan.

In a press conference, PMI announced a collaboration with Grammy-nominated DJ and producer Steve Aoki, who also performed at the event.

Aoki’s dedication to music and art aligns seamlessly with IQOS’s commitment to a smoke-free future, positioning this collaboration as a symbol of shared progress and innovation. “I find IQOS’s vision to be progressive, innovative and, actually, really inspiring,” he said.