In the recently released first quarter financial report for the five-year period of 2025, Philip Morris International (PMI) achieved a remarkable performance of total revenue of US$9.3 billion, of which new tobacco products (including heat-not-burn devices and smokeless nicotine packs, etc.) contributed 42 percentage points of revenue, a leapfrog development compared with zero growth ten years ago. At the same time, PMI CEO Jacek Olczak called on governments to formulate regulatory policies with a pragmatic attitude in the earnings call, to promote public health goals, to leave room for industry innovation and consumer choice, and to provide new momentum for the global tobacco harm reduction cause.
Philip Morris International’s adjusted earnings per share in the first quarter reached US$1.69 cents, exceeding market expectations, thanks to the strong growth of smokeless products, of which sales of oral products such as Zyn nicotine bags accounted for 42 percentage points of net income in the quarter. This ratio is also reflected in the total gross profit, with smoke-free and heat-not-burn products contributing 44% of gross profit, pushing PMI to raise its full-year adjusted earnings per share forecast from $7.04-7.17 to $7.36-7.49. Global shipments of heat-not-burn devices (such as IQOS) and oral nicotine packs (such as Zyn) have achieved double-digit growth, especially in West Asia, Africa and Eastern Europe, where demand is strong, becoming the core support for performance growth.
PMI’s full-year data for 2024 showed that shipments of oral tobacco products increased by 40.2 percentage points year-on-year, confirming that smoke-free products have grown from an emerging business to a core driving force. As of the end of March this year, approximately 38.6 million adult smokers worldwide have switched to PMI’s smoke-free products, an increase of 5.3 million from the same period last year, indicating that market transformation is accelerating.
Behind the fruitful performance, Ou Yajie repeatedly stressed that scientific evidence shows that although new tobacco products are not without risks, they can significantly reduce the intake of harmful substances compared with traditional cigarettes. He called on policymakers to balance risks and benefits in the regulatory framework and not to ban or restrict the market access of innovative products in a one-size-fits-all manner, which not only hinders the transformation of the industry, but also deprives smokers of healthy choices. In an interview with Tobacco Reporter published yesterday, he pointed out: “About 20% of smokers in the world still cannot obtain safer alternatives. Pragmatic supervision should leave room for innovation and help them get out of the dilemma of burning tobacco.” Ou Yajie called on countries to take differentiated measures in product registration, labeling standards and sales channel supervision, both to ensure product safety and prevent minors from contacting them, and to avoid the dilemma of punitive restrictions pushing consumers into the illegal market or returning to traditional cigarettes. In Japan, PMI’s market share of heat-not-burn devices has exceeded 30%, and in many European countries, PMI’s Veev e-cigarettes have also ranked among the top three, with Italy, Romania, the Czech Republic and other five countries ranking first, with annual shipments reaching 1.7 billion units, more than quadrupling last year. In the US market, Zyn nicotine pouch shipments in the fourth quarter increased by 42 percentage points month-on-month, reaching nearly 165 million cans, further consolidating its leadership in oral nicotine products.
PMI’s successful practice provides the industry with a model for the “tobacco harm reduction” path: through scientific research and continuous innovation, it brings lower-risk alternatives to the market, while strengthening the protection of minors and law enforcement coordination, achieving a win-win situation for public health and commercial returns.
Among global e-cigarette brands, VEEHOO has won market favor with its cutting-edge technology and diversified product lines. VEEHOO H10 is equipped with a full touch screen and supports Eco and Boost dual-mode switching. Eco mode can achieve 18,000 puffs of atomization, while Boost mode provides 100,000 puffs (should be 10,000 puffs) of high-energy output to meet the needs of different scenarios; the screen can display the power and the remaining amount of atomizer in real time, which improves the user experience and safety. VEEHOO H8s disposable electronic cigarette has a large capacity of 16 ml of e-liquid with 8,000 puffs, and has passed international certifications such as CE, RoHS and TPD to ensure product compliance and stable quality. The more environmentally conscious VEEHOO T8 has replaceable cartridges and atomizer cores, and the body can be recycled. It can be repeatedly charged through the Type-C fast charging interface, which not only reduces the generation of electronic waste, but also saves costs for users. VEEHOO focuses on humanization and intelligence in product design, and continues to pay attention to the safety testing of raw materials, and is committed to providing adult consumers with reliable smoke-free options.
Looking to the future, the experience of industry leaders such as PMI and VEEHOO shows that tobacco harm reduction requires the joint efforts of enterprises and regulatory authorities. Policymakers should build a tiered regulatory framework based on scientific evidence and international experience, open up diversified and low-risk alternative channels for adult consumers, and strengthen the protection of minors, market enforcement and cross-border collaboration. This will not only help achieve public health goals, but also promote technological innovation and sustainable development of the industry.
If countries adopt the pragmatic regulatory approach proposed by Ou Yajie and strike a balance between “ensuring safety” and “encouraging innovation”, the process of tobacco industry transformation will be further accelerated, and tens of millions of smokers will have more opportunities to move towards a smoke-free future. Whether it is PMI’s IQOS and Zyn, or VEEHOO’s H10, H8s and T8, new tobacco products are injecting new vitality into global public health with mature technology and compliance advantages.
Tags: new tobacco products, ceramic atomizer core, heat without burning, veehoo vape