Philip Morris International (PMI), the world’s largest tobacco company, is actively developing affordable smoke-free products aimed at offering alternatives to current smokers in Africa, according to a senior executive from the multinational corporation based in the US.

At the company’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, emphasized the potential within Africa’s emerging smoke-free market, particularly its sensitivity to pricing.

“Africa plays a crucial role, and we are committed to creating smoke-free products as options for African smokers,” he stated.

However, he acknowledged that the pricing for PMI’s smoke-free products remains prohibitive for many consumers across the continent.

“Initially, the smoke-free products we introduced were premium devices offered at premium prices. Although we have seen success in specific economies, in many countries within my region, only 5-10% of consumers can afford them,” he noted.

In response to this cost barrier in Africa and other developing markets, PMI is innovating more economical smoke-free solutions, de Wilde shared.

“We are refining our heat-not-burn technology and are testing a new, simpler device that caters to medium and low price points. Additionally, we have products in the e-cigarette category. This could potentially emerge as one of the most successful smoke-free alternatives in developing markets,” he explained.

Marlboro’s Vision for a Smoke-Free Future

Since 2016, PMI, which holds a range of leading global cigarette brands, including Marlboro outside the US and Canada, has vowed to substitute traditional cigarettes in its markets with smoke-free options. The company has invested over $12.5 billion in smoke-free research and development since 2008, with the goal of having these products account for two-thirds of its total revenue by 2030.

Among its smoke-free innovations is the flagship IQOS, a heated tobacco device that generates a nicotine-containing aerosol without igniting the tobacco. Furthermore, PMI’s acquisition of Swedish Match in 2022 has further expanded its smoke-free portfolio, which de Wilde claims is capturing consumer interest in developing economies.

In its third-quarter earnings report, smoke-free products constituted 38% of total net revenues, with nearly 40 billion units shipped across 92 markets. Additionally, PMI claimed a 24.2% share of the international cigarette market for the third quarter, with shipments of 163.2 billion cigarette units, reflecting a 1.3% increase compared to the previous year.

The World Health Organization (WHO) estimates that approximately 1.3 billion people worldwide smoke cigarettes. Despite the well-documented health risks linked to smoking, the US Centers for Disease Control and Prevention (CDC) indicates that fewer than one in ten adult smokers manage to quit each year.

The number of tobacco smokers in Africa surged from an estimated 52 million in 2000 to 66 million in 2015, with forecasts suggesting a rise 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 tobacco smoker numbers are anticipated to climb.

Engaging with Skeptical Regulators

Despite the hopeful market opportunities for PMI’s smoke-free products in Africa, the regulatory and policy landscapes throughout the continent remain intricate and challenging. Each nation has established its own stance on tobacco regulations, leading to a disjointed environment.

Additionally, some policymakers display reluctance towards smoke-free alternatives, often categorizing them alongside traditional cigarettes.

“In Africa and certain developing regions, we see that governments are restricting these products even before they are launched into the market,” de Wilde states.

Even when products receive approval, obstacles remain regarding regulators’ understanding of smoke-free items, he adds.

“Regulators have not yet adopted a holistic harm reduction viewpoint; often, they allow these items to move into the market but treat them as if they were cigarettes.”

Building credibility with regulators involves informing them about smoke-free products, de Wilde asserts.

“We frequently encounter skeptics who claim that there is no scientific basis or independent research. This is misleading. Such individuals should take the time to review the publicly available scientific evidence,” he contends.

“Eleven independent state agencies have assessed our scientific data, including the FDA (Food and Drug Administration) in the US, which granted modified risk tobacco product authorization.”

The UK’s National Health Service recognizes that using e-cigarettes is “not entirely without risk, but it carries significantly lower risk than smoking traditional cigarettes…E-cigarettes do not emit tar or carbon monoxide, two of the most harmful components of tobacco smoke. Although the liquid and vapor contain some harmful chemicals also found in cigarette smoke, they are present 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 crucial element in gaining the trust of African regulators is to clarify that these products are not geared towards attracting new users but are designed for existing smokers, aiming to reduce their health risks.

“These offerings are aimed at current smokers. When we engage with regulators and they understand the extent of the smoking population we are addressing, they generally become more receptive,” he explained.

Raising awareness among both authorities and consumers is vital for motivating African smokers to transition to alternatives, de Wilde insists, underlining the necessity for eased marketing restrictions on smoke-free products, which should not be treated like traditional cigarettes.

“Educating the public is the first step. We can contribute, but authorities must play a role too. When people become aware of the harms associated with smoking, they should also learn about the new alternatives available.”

“To make sure individuals are informed about these alternatives, we need adequate marketing liberties to connect with them, provide them with product trials, and follow up over the course of a few weeks,” he concludes.