From Investing.com: 2024-04-29 01:11:11

Philip Morris International (PMI) aims to launch its heated tobacco device IQOS in the competitive U.S. market, targeting a 10% share of total cigarette and heated tobacco volumes within five years. With a successful global track record, PMI believes it can replicate its IQOS success in the U.S., potentially tapping into a $20 billion profit pool.

PMI’s IQOS device heats tobacco sticks without burning them, aiming to attract smokers looking for healthier alternatives. With an estimated 2.8 million U.S. users needed to achieve its market share goal by 2030, PMI faces competition from vaping but remains confident in IQOS’ appeal to American smokers based on its success in other markets.

Despite limited potential seen by rivals like British American Tobacco, analysts and investors believe PMI has an opportunity to succeed in the U.S. market with IQOS. PMI’s strategic approach to pricing, marketing, and sales channels will be crucial in cultivating a consumer base in a market dominated by traditional cigarettes and vaping products.



Read more at Investing.com: Analysis-Philip Morris faces key test with US heated tobacco push By Reuters