Early 2022 has seen major tobacco companies reporting their 2021 financial results and showing their intentions to investors.
The impressive performance of novel nicotine products has been central in the slides presented. It seems that a global reduced risk nicotine revolution is well underway.
Philip Morris International (PMI) posted positive numbers for the year, estimating that the total number of users of its signature heated tobacco product, IQOS, has now reached approximately 21.2 million, of which 15.3 million have switched away from smoking entirely. The American tobacco company Altria reported that sales of non-combustible products rose from 16 percent to 24 percent of the U.S. tobacco market from 2016 to 2021.
British American Tobacco saw revenue from its new nicotine products category rise by 42.4 percent in 2021 to £2.05 billion, primarily thanks to sales of nicotine pouches. It is projecting £5 billion revenue in new categories by 2025, and 50 million consumers of non-combustible products by 2030.
Japan Tobacco International said it hopes to prioritize heated tobacco and is predicting it will recoup its R&D investment on reduced risk products (RRP) by 2027. Its CEO Masamichi Terabatake declared that “[e]xpansion of our presence in the RRP category is utmost priority.”
Martin Cullip – Taxpayers Protection Alliance – 2022-04-04.
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