Key Points
- PMI held Technovation 2026 in Buenos Aires on October 7–8, showcasing smoke-free products and research on Latin American markets.
- PMI Chief Global Growth Officer Stefano Volpetti said smoke-free products represented more than 7% of the Mexico City market, although the company has not disclosed the full calculation methodology.
- Argentina repealed its heated tobacco ban in May 2026 and introduced product registration requirements, while prohibiting prefilled disposable vapes and limiting nicotine pouches to 8 mg per pouch.
- A PMI-commissioned Povaddo survey found that only 8% of respondents across four Latin American countries were familiar with nicotine pouches. A separate KPMG study estimated 77 billion illicit cigarettes consumed across 11 Latin American and Canadian markets in 2025, with associated tax revenue losses of $8.5 billion.
2FirstsOctober 13, 2026
Philip Morris International (PMI) showcased its IQOS heated tobacco systems and nicotine pouch products at Technovation 2026 in Buenos Aires on October 7–8, presenting research on consumer attitudes, regulation and illicit cigarette trade across Latin America. At the event, PMI Chief Global Growth Officer Stefano Volpetti said smoke-free products accounted for more than 7% of the Mexico City market, while Argentine media reported that nicotine pouches were being sold in Mendoza province.
The two-day event was held at Origami in Buenos Aires. According to PMI's official agenda, discussions covered smoke-free product development, consumer behavior, regulatory policy, commercial innovation and illicit cigarette trade. Speakers included PMI President for Latin America and Canada Can Kuterdem and Chief Global Growth Officer Stefano Volpetti.
Argentina Lifts Heated Tobacco Ban, Introduces Registration Rules as Nicotine Pouches Reach Mendoza Retailers
Argentine newspaper Diario UNO reported on October 7 that PMI presented heated tobacco devices and nicotine pouches at Technovation.
According to the report, nicotine pouches were available at retail outlets in Mendoza province for approximately ARS 5,500, while heated tobacco devices were priced from around $20.
PMI's smoke-free portfolio includes IQOS heated tobacco systems and ZYN nicotine pouches.
Argentina's Ministry of Health published Resolution 549/2026 on May 4, repealing a 2023 ban on heated tobacco products and introducing registration, commercialization and regulatory requirements for tobacco and nicotine products.
The new framework covers e-cigarette devices and liquids, heated tobacco devices and sticks, and nicotine pouches.
Under the resolution, nicotine pouches may contain no more than 8 mg of nicotine per pouch. They must use tobacco-derived nicotine rather than synthetic nicotine or nicotine analogues, with permitted flavors limited to menthol and tobacco.
For e-cigarettes, the regulation prohibits the import and sale of single-use devices containing prefilled e-liquid. It also requires e-liquid nicotine concentrations to remain below 20 mg/ml, limits tank capacity to 2 ml and permits only tobacco flavor.
Heated tobacco sticks are also restricted to tobacco flavor.
In July, the Health Ministry issued Resolution 796/2026, extending the implementation period for the registration system by up to 180 days.
Products must meet applicable registration and technical requirements before commercialization. Public reports have not identified the specific brands, models or registration records of the nicotine pouches reportedly sold in Mendoza.
PMI Says Smoke-Free Market Share in Mexico City Exceeds 7%
PMI Chief Global Growth Officer Stefano Volpetti said smoke-free products now account for more than 7% of the Mexico City market during the Technovation event.
According to an October 9 report by SDP Noticias, Volpetti said the category had increased its market penetration from much lower levels four to five years earlier.
Mexican newspapers El Financiero and El Economista also reported on market developments during the event.
Volpetti identified Mexico as an important Latin American market for PMI and discussed the company's IQOS heated tobacco systems and ZYN nicotine pouches.
He said regulatory frameworks, product pricing and consumer access to information were among the factors influencing smoke-free product development.
Volpetti also compared Mexico's regulatory approach with that of countries including Italy. He argued that Mexico's restrictions on vaping had affected consumer perceptions of different product categories and could contribute to illicit market activity.
PMI has not provided a full methodology for the more-than-7% Mexico City estimate, including the precise product categories, measurement period and market-share denominator.
PMI Survey Finds Only 8% Familiar With Nicotine Pouches Across Four Latin American Countries
PMI also presented results from a consumer survey conducted on its behalf by research firm Povaddo.
The survey was conducted from April 6 to 13, 2026, among 2,009 adults aged 18 and older in Mexico, Colombia, Costa Rica and Panama.
Interviews were conducted online in Mexico and Colombia, and through a combination of online and face-to-face methods in Costa Rica and Panama. Results were weighted by age, gender and tobacco or nicotine product use.
Across the four countries, the survey found that:
83% of respondents believed nicotine itself causes cancer.
92% believed different tobacco and nicotine products pose the same level of harm to users.
Only 10% were familiar with heated tobacco products and 8% with nicotine pouches.
80% supported providing smoke-free product choices and related information to adults who might otherwise continue smoking.
79% supported tax policies differentiating products according to their relative risk levels.
The survey also found that 86% of respondents believed higher cigarette taxes and restrictions alone would not be sufficient to address smoking.
Among adults who exclusively smoked cigarettes, 74% said accurate information at the point of sale would make them more likely to consider smoke-free products, compared with 57% who cited lower prices.
The results measure respondents' reported beliefs and preferences rather than actual purchasing or switching behavior. The survey was commissioned by PMI.
KPMG Estimates 9.2 Billion Illicit Cigarettes Consumed in Mexico, Representing 23.3% of Market
Illicit cigarette trade was another subject discussed at Technovation.
A KPMG study commissioned by Philip Morris Products S.A. and completed in April 2026 estimated that approximately 77 billion illicit cigarettes were consumed across 11 markets in Latin America and Canada in 2025, accounting for 31.9% of total cigarette consumption.
The proportion exceeded the estimated global average of 15% cited in the study.
KPMG estimated associated tax revenue losses across the 11 markets at approximately $8.5 billion.
In Mexico, illicit cigarette consumption reached an estimated 9.2 billion sticks, representing 23.3% of total cigarette consumption of approximately 39.4 billion sticks. Estimated tax losses totaled $1.314 billion.
Argentina recorded an estimated 3.87 billion illicit cigarettes, representing 10.7% of cigarette consumption, with associated tax losses of approximately $332 million.
The study also estimated illicit cigarette consumption shares of 88.8% in Panama, 83.6% in Ecuador and 57.9% in Chile.
The research was commissioned by Philip Morris Products S.A. and covered 11 markets, including Canada. Its figures are modeled estimates rather than confirmed government seizure totals or recorded fiscal losses.
Smoke-Free Products Generate 42% of PMI's Q2 Net Revenues, With Two-Thirds Target for 2030
According to PMI's official disclosures, its smoke-free products were available in 109 markets worldwide as of June 2026.
PMI estimated that more than 43 million legal-age adults worldwide used its smoke-free products as of the end of 2025.
Smoke-free products accounted for approximately 42% of PMI's global net revenues in the second quarter of 2026.
The company said it had invested more than $16 billion since 2008 in smoke-free product development, scientific assessment and commercialization.
PMI also reported that approximately 77% of its commercial research and development resources and 99.7% of its R&D expenditures were directed toward smoke-free products in 2025.
The company aims for smoke-free products to generate two-thirds of its total net revenues by 2030.
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