Top Takeaways:
- PMFTC targets double-digit growth for IQOS in 2025, aiming to expand beyond 150,000 current users in the Philippines.
- Consumer education is key, according to PMFTC President Gijs de Best, who emphasizes the health benefits of heating versus burning tobacco.
- Local production ramps up, with a ₱8.8 billion (US$150 million) plant in Batangas now manufacturing IQOS and other smoke-free products domestically.
PMFTC Inc., the Philippine affiliate of Philip Morris International (PMI), is aiming for double-digit growth in its IQOS heated tobacco product this year, as the company expands its smoke-free footprint in one of Southeast Asia’s most dynamic nicotine markets.
Since launching IQOS in the Philippines in 2020, PMFTC has grown its user base to approximately 150,000, according to company president Gijs de Best. Speaking in a recent interview, de Best said the company is now focused on accelerating adoption by addressing public misconceptions about nicotine and promoting the health benefits of non-combustible alternatives.
“People don’t understand what the problem is related to smoking,” de Best said. “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.”
PMFTC launched IQOS during the COVID-19 pandemic, a time when in-person promotions were limited and the product gained traction primarily through word-of-mouth. The company is now investing in broader marketing and outreach efforts.
The push is backed by local manufacturing. In 2024, PMI inaugurated an ₱8.8 billion (US$150 million) production facility in Tanauan, Batangas, dedicated to the manufacture of IQOS devices and related heated tobacco products. The factory, one of the first of its kind in the region, is expected to reduce import reliance and improve supply chain efficiency.
The Philippines is one of 96 global markets where PMI has introduced IQOS. Within the region, Indonesia currently represents the largest market for the device.
PMFTC’s expansion comes amid broader shifts in the nicotine industry, with global tobacco firms accelerating investments in smoke-free products to offset declining cigarette volumes. In the Philippines, the Department of Health continues to express caution toward alternative nicotine products, though regulatory frameworks for heated tobacco are already in place.
De Best said the company remains committed to working with regulators to ensure responsible growth of the category.
“We believe that providing adult smokers with scientifically substantiated alternatives is key to reducing the harm caused by smoking,” he said.
PMFTC did not disclose specific sales targets but emphasized that it sees significant growth potential in the Philippines as awareness of smoke-free products increases.
