DailySun
Philip Morris International (PMI), the largest tobacco company in the world, is making strides in developing affordable smoke-free products designed to provide alternatives for current smokers in Africa, according to a senior executive from the US multinational.
At the firm’s Technovation event in Abu Dhabi, Frederic de Wilde, PMI’s president for South and Southeast Asia, the Commonwealth of Independent States, the Middle East, and Africa, underscored the emerging smoke-free market in Africa, which is price-sensitive.
“Africa undoubtedly holds a crucial position, and we are committed to creating smoke-free alternatives for African smokers,” he stated.
However, he recognized that the cost of PMI’s smoke-free products remains prohibitive for many consumers within the continent.
“Initially, the smoke-free products we introduced were premium devices with premium pricing. While we have achieved success in certain economies, in many countries within my region, only 5-10% of consumers can afford them,” he elaborated.
To address this cost issue in Africa and comparable developing markets, PMI is actively working on more affordable smoke-free options, de Wilde revealed.
“We are innovating in heat-not-burn technology and are currently testing a new, simpler device targeted at medium and low price segments. We also have products in the e-cigarette category. This could potentially be among the biggest successes in smoke-free alternatives in developing regions,” he remarked.
Marlboro’s Vision for a Smoke-Free Future
Since 2016, PMI, which boasts a portfolio of leading global cigarette brands like Marlboro outside the US and Canada, has committed to replacing traditional cigarettes in its markets with smoke-free products. The company has invested over $12.5 billion in research and development for smoke-free alternatives since 2008, aiming for these products to account for two-thirds of its total revenue by 2030.
Among its smoke-free offerings is IQOS, a heated tobacco device that creates a nicotine-containing aerosol without burning tobacco. Furthermore, PMI’s acquisition of Swedish Match in 2022 has further enhanced its smoke-free portfolio, which de Wilde claims is attracting interest among consumers in developing economies.
In the company’s third-quarter earnings report, smoke-free products constituted 38% of total net revenues, with nearly 40 billion units shipped across 92 markets. Meanwhile, PMI captured 24.2% of the international cigarette market for the third quarter, with shipments totaling 163.2 billion cigarette units, reflecting a 1.3% increase compared to the same period last year.
The World Health Organization (WHO) estimates that approximately 1.3 billion people smoke cigarettes globally. Despite the well-documented health risks linked to smoking, the US Centers for Disease Control and Prevention (CDC) reports that fewer than one in ten adult smokers succeed in quitting each year.
The number of tobacco smokers in Africa has risen from an estimated 52 million in 2000 to 66 million in 2015, with forecasts suggesting an increase to 84 million by 2025, according to a 2022 study published in the British Medical Journal. This trend positions the region as one of the few globally where the number of tobacco smokers is anticipated to grow.
Engaging with Skeptical Regulators
Despite the optimistic market outlook for PMI’s smoke-free products in Africa, the regulatory and policy frameworks across the continent are intricate and challenging. Each country has established its own approach to tobacco regulations, resulting in a fragmented environment.
Moreover, some policymakers show reluctance toward smoke-free alternatives, often classifying them alongside traditional cigarettes.
“In Africa and several developing regions, we notice that governments are banning these products even before they reach the market,” de Wilde remarked.
Even when these products are permitted, misconceptions about the nature of smoke-free items persist among regulators, he noted.
“Authorities have not yet adopted a comprehensive harm reduction perspective in their regulations; they tend to allow these products into the market but treat them as if they were cigarettes.”
Building trust with regulators necessitates educating them about smoke-free products, according to de Wilde.
“We often come across skeptics who claim there is no scientific foundation or independent research. This is inaccurate. Those individuals should spend time reviewing the publicly accessible scientific data,” he asserted.
“Eleven independent state authorities have evaluated our scientific findings, including the FDA (Food and Drug Administration) in the US, which has granted modified risk tobacco product authorization.”
The UK’s National Health Service recognizes that using e-cigarettes is “not entirely risk-free but poses a significantly lower risk than smoking traditional cigarettes… E-cigarettes do not produce tar or carbon monoxide, two of the most harmful components of tobacco smoke. While the liquid and vapor contain some harmful chemicals found in cigarette smoke, they are at significantly lower levels.”
Nonetheless, the NHS cautions that “the long-term risks of vaping remain unclear.”
New Offerings for Current Smokers
De Wilde stresses that a key element in earning the trust of African regulators is to emphasize that these products target existing smokers rather than aiming to attract new users, with a focus on reducing health risks.
“These new offerings are aimed at current smokers. When we communicate with regulators and they understand the scale of the smoking population we are addressing, they generally become more receptive,” he clarified.
Enhancing awareness among both authorities and consumers is vital for encouraging African smokers to switch to alternatives, de Wilde contends, highlighting the need for eased marketing restrictions on smoke-free products, which should not be treated like traditional cigarettes.
“Informing the public is the first step. We can do our part, but authorities must assist as well. When people realize the harms caused by smoking, they should also be informed about the new alternatives available.”
“To ensure individuals are educated about these alternatives, we require adequate marketing freedom to engage with them, allow them to try the products, and follow up over several weeks,” he concluded.
