Philip Morris International (PM) Consumer Analyst Group of New York Conference (CAGNY) 2026 summary

Transformation progress and strategic direction

• Over 40% of revenues and gross profit now come from smoke-free products, with presence in 106 markets, surpassing previous targets.

• Three out of four regions have exceeded 50% revenue from smoke-free products, representing 75% of operating income.

• Ambitious goal set for 2/3 of revenues from smoke-free products by 2030, with strong momentum in key markets.

• Rapid market share gains in new markets like Taiwan, doubling nicotine market share within a year.

• The executive team highlighted a multicategory approach to address evolving consumer preferences and deliver superior shareholder returns.

Market trends, regulatory environment, and consumer adoption

• Markets with smoke-free products see cigarette volume declines five times faster than those without; some restricted markets show rising cigarette sales.

• Regulatory and fiscal policies are increasingly favorable, with more science-based, pragmatic discussions on nicotine and product standards.

• Over 40 markets have recognized tobacco harm reduction as a guiding principle, with increasing regulatory and fiscal differentiation for SFPs.

• Large countries like India, Turkey, Brazil, and Vietnam remain closed to smoke-free products but are expected to open as global momentum builds.

• Only about 20% of the global nicotine market is smoke-free, but double-digit growth continues as consumer awareness and trial rates rise.

Innovation, infrastructure, and portfolio management

• Significant investment in R&D and commercial spend is focused on smoke-free products, with 1.5 million points of sale and over 7,600 IQOS stores and partners.

• Infrastructure built for IQOS now supports other brands like ZYN and VEEV with minimal incremental cost.

• Continuous innovation across SFPs includes new technologies and product launches in heated tobacco, e-vapor, and nicotine pouches.

• Marlboro maintains record international market share, supporting the transition by leveraging existing infrastructure.

• High consumer registration rates support multicategory growth.