PMI reports strong smoke-free growth: 39 per cent of 2024 revenue from alternatives, 38.6 million users reached
April 3, 2025
Philip Morris International (PMI) has marked a milestone year in its shift away from cigarettes, with smoke-free products accounting for 39 per cent of total net revenues in 2024 and reaching an estimated 38.6 million adult users globally.
The figures were revealed in the company’s sixth annual Integrated Report, which highlights both financial performance and sustainability progress over the past decade.
Key achievements include six markets where smoke-free alternatives now contribute over 75 per cent of net revenues – up from three in 2023 – and a cumulative investment exceeding $14 billion (£10.6bn) in smoke-free innovation since 2008. Operational strides were also noted, with 61 per cent of PMI’s manufacturing facilities now carbon-neutral, up from 43 per cent the previous year.
“Our 2024 Integrated Report celebrates a milestone year that marked the 10th anniversary of the commercialisation of IQOS, VEEV and ZYN and our journey toward achieving one of the most ambitious business transformations in modern history,” said Jacek Olczak, PMI’s chief executive.
“By the end of 2024, our efforts to expand access to smoke-free products allowed us to reach an estimated 38.6 million adult users, with the products available in 95 markets, demonstrating our deep commitment to sustainability and business transformation.”
The report underscores PMI’s dual focus on profitability and responsible business practices. Emmanuel Babeau, chief financial officer, noted that competing in traditional tobacco while driving its decline is a “necessary phase” in the company’s evolution.
“Our smoke-free business accounted for approximately 39 per cent of PMI’s total net revenues for the full year 2024, with an acceleration in top- and bottom-line growth,” Babeau said. “Our integrated approach – linking financial success with positive impact – positions us well to continue investing in the future.”
PMI reported progress in ethical sourcing, with 99 per cent of contracted tobacco farmers now earning a living income (up from 96 per cent in 2023) and child labour prevalence dropping to 0.01 per cent among suppliers (from 0.1 per cent). Additionally, 99 per cent of shipment volumes were covered by youth access prevention programmes in indirect retail channels.
On environmental efforts, the company published its first pre-certified environmental product declarations for IQOS ILUMA devices and expanded human rights impact assessments to 10 high-risk countries.
“Our Sustainability Index has proven instrumental in ensuring our ambitions are balanced and our metrics are objective, while our enhanced nonfinancial data governance helps us report with precision and consistency,” Jennifer Motles, chief sustainability officer, said.
