Key Takeaways：
· Regulatory edge: PMI calls the Philippines’ regulatory environment “very progressive,” with potential to become an export hub for smoke-free products.
· Factory shift: Philippine facilities are being fully converted to produce heated tobacco (HnB) products.
· Large market: With about 16 million smokers, PMI plans to introduce more affordably priced smoke-free products.
2Firsts, October 11, 2025 — Citing The Philippine Star, Philip Morris International (PMI) says that, given the Philippines’ “highly forward-looking” regulatory system and investor-friendly climate, the company is considering building the country into an export hub for its science-based smoke-free products.
The Philippines Could Become a Major PMI Smoke-Free Production Base
PMI CEO Jacek Olczak said the company has not built new cigarette factories over the past decade, instead converting some existing plants—including one in the Philippines—into production bases for smoke-free products.
Christos Kiritsis, PMI’s VP for smoke-free products across South Asia, Southeast Asia, the CIS, the Middle East, and Africa, noted that the Philippines is among the few countries with a comprehensive regulatory framework for smoke-free products. Its “very progressive” system creates favorable conditions for investment and exports. He added that beyond its investment appeal, the Philippines has a large domestic market that is crucial to PMI’s future plans.
Doubling Down on Smoke-Free: $14 Billion Invested Globally
In the Philippine market, PMI currently offers multiple smoke-free alternatives, including the heated tobacco product IQOS and ZYN nicotine pouches, giving legal-age consumers options to consume nicotine without combustion.
Olczak said PMI has invested about $14 billion over the past decade in the R&D and commercialization of smoke-free products, which now account for 41% of the company’s global net revenues. He revealed PMI is developing a next-generation IQOS, improved nicotine pouches, and new vaping devices, and will continue to expand investment.
Philippine Facilities Under Full Conversion
PMI and its local affiliate PMFTC Inc. operate a 1.2-hectare plant in Tanauan, Batangas, opened last year and now dedicated to producing specialized sticks for smoke-free products. Olczak said the company emphasizes employee retraining during the transition to ensure staff can remain engaged in smoke-free production as cigarette operations wind down.
Serving 16 Million Smokers: Expanding More Affordable Options
Kiritsis noted there are still about 16 million smokers in the Philippines. PMI plans to launch more price-competitive smoke-free products locally to broaden market coverage. He said PMI’s second-generation HnB device Bonds—previously piloted in the Philippines—could return, aimed primarily at Asian consumers at price points closer to cigarettes, and, according to PMI, capable of reducing harmful constituents by about 95%.
As of mid-year, among roughly 1 billion smokers worldwide, approximately 41 million adults use PMI’s smoke-free products.
We welcome news tips, article submissions, interview requests, or comments on this piece.
Please contact us at info@2firsts.com, or reach out to Alan Zhao, CEO of 2Firsts, on LinkedIn
Notice
1. This article is intended solely for professional research purposes related to industry, technology, and policy. Any references to brands or products are made purely for objective description and do not constitute any form of endorsement, recommendation, or promotion by 2Firsts.
2. The use of nicotine-containing products — including, but not limited to, cigarettes, e-cigarettes, nicotine pouchand heated tobacco products — carries significant health risks. Users are responsible for complying with all applicable laws and regulations in their respective jurisdictions.
3. This article is not intended to serve as the basis for any investment decisions or financial advice. 2Firsts assumes no direct or indirect liability for any inaccuracies or errors in the content.
4. Access to this article is strictly prohibited for individuals below the legal age in their jurisdiction.
Copyright
This article is either an original work created by 2Firsts or a reproduction from third-party sources with proper attribution. All copyrights and usage rights belong to 2Firsts or the original content provider. Unauthorized reproduction, distribution, or any other form of unauthorized use by any individual or organization is strictly prohibited. Violators will be held legally accountable.
For copyright-related inquiries, please contact: info@2firsts.com
AI Assistance Disclaimer
This article may have been enhanced using AI tools to improve translation and editorial efficiency. However, due to technical limitations, inaccuracies may occur. Readers are encouraged to refer to the cited sources for the most accurate information.
We welcome any corrections or feedback. Please contact us at: info@2firsts.com
