Philip Morris International (PM) 23rd annual dbAccess Global Consumer Conference summary

Strategic and regulatory updates

• Guidance was adjusted for currency fluctuations, but underlying business outlook for the year remains unchanged.

• Recent FDA guidelines are seen as positive, aligning regulatory and company perspectives for oral nicotine products.

• ZYN ULTRA shipments began this week in the U.S., with new strengths and flavors, and a pricing strategy to address market share pressure.

• The oral nicotine pouch category is still in early stages, with significant growth potential, especially in the U.S.

• Regulatory clarity is expected to reduce illicit market share and support legal product growth.

Product and market performance

• ZYN faces market share pressure due to premium pricing and competitive product lineups, prompting price adjustments.

• Oral nicotine pouches are growing 20–30% annually in the U.S., with potential for acceleration depending on consumer adoption.

• IQOS maintains strong market share in Japan despite excise tax increases and heightened competition.

• IQOS brand strength is attributed to consistent global execution and premium positioning.

• Multi-category strategy leverages synergies between heat-not-burn, vape, and oral products for consumer flexibility.

Innovation and international expansion

• Innovation is key for category growth, with product differentiation strongest in heat-not-burn, followed by vape and oral.

• ZYN is present in over 30 markets, leveraging infrastructure built for IQOS and adapting to local consumer habits.

• Early adopters drive initial growth in new markets, but long-term success depends on broader consumer acceptance.

• IQOS brand is extendable to other product categories, supporting cross-category growth.

• European growth is attributed to organizational learning and consumer-centric strategies, despite regulatory setbacks in some countries.