October 30, 2025 | 12:00am
MILAN — Philip Morris International (PMI) has marked a major milestone in its transformation journey, with its flagship smoke-free product, IQOS, surpassing $10 billion in annual net revenues in 2024 – less than a decade after its launch.
Speaking here at the unveiling of the limited edition IQOS Iluma i, designed by Italian entrepreneur and visionary Stefano Seletti, PMI president for heated tobacco products Oggie Kapetanovic highlighted the challenges and achievements behind building a purpose-driven brand in one of the world’s most heavily regulated industries.
“Our smoke-free products, such as IQOS, are fundamentally different from cigarettes,” Kapetanovic said. “They have the potential to bring meaningful benefits to public health and society at large. But helping people understand this – educating them about the science and technology – requires tremendous effort and years of commitment,” he said.
Since its debut, IQOS has positioned itself as a cornerstone of PMI’s strategy to shift away from traditional cigarettes. The brand’s rapid rise to a $10 billion benchmark puts it in a rare company, outpacing global tech giants like Amazon and Tesla in the speed with which it reached that level of revenue, the executive said.
In the Philippines, IQOS was launched by Philip Morris Fortune Tobacco Co., PMI’s local affiliate, in 2020. Since then, it has expanded its presence nationwide, offering smoke-free alternatives to adult smokers. Today there are about 150,000 IQOS users in the Philippines.
Smoke-free business accounted for approximately 41 percent of PMI’s total net revenues in the third quarter.
In the fourth quarter of 2023, IQOS replaced Marlboro cigarettes as its leading brand, marking a historic stride toward becoming a company that no longer sells cigarettes.
PMI attributes this growth to a combination of cutting-edge technology, consumer-centric design and a sustained focus on harm reduction.
“IQOS has redefined innovation within our sector,” Kapetanovic said. “It shows our ability to compete at the forefront of global transformation, even in one of the most regulated industries in the world,” he added.
Beyond the commercial success, PMI continues to leverage cultural and creative collaborations to expand awareness of its smoke-free vision. The brand has participated in major events such as Milan Design Week, and forged partnerships with global creatives including American DJ and record producer Steve Aoki in Japan and design powerhouse Seletti in Italy.
“Events like Milan Design Week bring together the most forward-thinking creators,” Kapetanovic said. “Seeing how people engage with us — how curious and open they are — makes me proud. It shows that the real transformation is already happening.”
As PMI deepens its shift toward a smoke-free future, the company sees IQOS not just as a product, but as a symbol of technological and social change — aiming to help millions of adult smokers switch to better alternatives.
PMI estimates that more than 41 million adults around the world use the company’s smoke-free products.