Description

Philip Morris: IQOS ILUMA U.S. Launch Could Be A Game-Changer—But How Big Is The Opportunity?

Philip Morris International Inc. reported financial results for 2025 that reflect continued structural shifts in the tobacco industry, with sustained growth in smoke-free products alongside a stable combustible tobacco business. The company’s smoke-free portfolio grew volumes by 12.8%, led primarily by IQOS heat-not-burn products, which increased shipments and in-market sales by approximately 11%, including strong double-digit growth in key markets such as Italy and Taiwan. Other smoke-free categories including nicotine pouches under the ZYN brand and the e-vapor segment with VEEV also showed significant volume growth, with ZYN shipments rising 36% and VEEV more than doubling internationally. From a geographic perspective, smoke-free revenues exceeded 41% of total net revenues, driven by expansion to 106 markets and adoption of multi-category strategies in 52 of these. The U.S. market remains a notable opportunity, with ZYN pouch shipments up 37% despite supply constraints and regulatory challenges.