The world’s largest tobacco company Philip Morris International (PMI) is developing a line of low-cost smokeless products for the African market. This was stated by Frederick de Wilde, President of PMI in the region of South and Southeast Asia, CIS, Middle East and Africa, during a speech at the Technovation event in Abu Dhabi, African.Business reports.
According to him, the company’s premium smokeless products, such as IQOS, are currently only available to 5-10% of consumers in the region due to the high price. To solve this problem, PMI is testing a new simple device aimed at the middle and low price segments.
“Africa plays an important role in our strategy, and we are committed to offering an alternative to local smokers,” said de Wilde.
According to the WHO, the number of smokers in Africa could increase from 66 million in 2015 to 84 million in 2025. PMI sees this as a potential growth area, although it faces regulatory challenges – some African countries ban smokeless products before they enter the market.
PMI plans to generate two-thirds of its revenue from smokeless products by 2030. The company has already invested more than $12.5 billion in the development of such alternatives to traditional cigarettes.