PMI Market Share For Marlboro And Other Cigarette Brands

Market share. Pixabay Image.

Philip Morris International (PMI) is one of the world’s leading tobacco companies. PMI develops, markets and sells not only cigarettes but also smoke-free products such as the IQOS blade and the associated heated tobacco units or HTUs.

Despite being a highly successful cigarette company, PMI is replacing its legacy cigarette business with a new category of smoke-free products, hoping to help smokers to transition to less harmful products.

While PMI is betting its future on emerging non-combustible products, the company is still pretty much a cigarette company.

As seen in this article, Philip Morris International revenue by product category, PMI’s cigarette sales still accounted for 64% of the company’s total revenue as of 2023. The encouraging news is that this ratio has been on the decline since 2017.

Therefore, PMI still primarily relies on its legacy cigarette business for revenue and profit, which also pays for the generous cash dividends yielding over 5%.

All said, this article looks at Philip Morris International (PMI)’s top cigarette brands by market share.

Let’s look at the numbers!

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Definitions

To help readers understand the content better, the following terms and glossaries have been provided.

Market Share: Market share for cigarettes is defined as PMI’s cigarette in-market sales volume as a percentage of total industry cigarette sales volume, excluding China and the U.S., including cigarillos in Japan.

In-Market Sales: In-market sales, or “IMS,” is defined as sales to the retail channel, depending on the market and distribution model.

Marlboro: Marlboro is a brand of cigarettes that was originally marketed as a woman’s cigarette before becoming associated with masculinity, primarily through marketing campaigns in the mid-20th century. It is one of the best-selling cigarette brands in the world, known for its distinctive red and white packaging.

The brand was introduced in 1924 and is owned by Philip Morris USA in the United States, and Philip Morris International outside the U.S.

Marlboro has utilized various advertising campaigns over the years, most notably the Marlboro Man, which depicted rugged men in various settings, contributing to the brand’s image of rugged individualism.

L&M: The brand name “L&M” stands for Liggett & Myers, its original manufacturer, highlighting the brand’s historical roots. Introduced by Liggett & Myers Tobacco Company in 1953, L&M was among the pioneering brands to incorporate filters in their cigarettes during the 1950s, marking a significant innovation in the tobacco industry at the time.

The brand has been recognized for enhancing the smoking experience through various innovations, particularly in the design of its filters and the blend of tobacco used. These efforts aim to provide a smoother smoking experience for consumers.

L&M offers a diverse range of product varieties to suit different consumer preferences, including options like full-flavour (red), light (blue), ultra-light (silver), and menthol versions. Over the years, L&M has established itself as a brand that values tradition and innovation in the competitive tobacco market.

Chesterfield: Chesterfield is a cigarette brand owned and manufactured by Philip Morris International (PMI). Historically, Chesterfield was one of the most popular cigarette brands in the United States and has been around since the late 19th century.

The brand has undergone various changes over the years, including modifications to its blend and packaging. Today, Chesterfield is available in several varieties, including full flavor, lights, and menthol, catering to different preferences of smokers around the world.

PMI continues to market Chesterfield in many countries, maintaining its legacy as a longstanding, recognizable brand in the tobacco industry.

Philip Morris: Philip Morris cigarettes are a product of Philip Morris International (PMI), a prominent international tobacco company with a presence in over 180 countries. Named after the company’s founder, these cigarettes are recognized for their distinctive blend of tobacco and have been a key offering in PMI’s brand portfolio for many years.

Parliament: Philip Morris International’s “Parliament” refers to a brand of cigarettes produced by Philip Morris International (PMI), a leading international tobacco company. Introduced in 1931, Parliament cigarettes are known for their distinctive recessed paper filter and premium tobacco quality.

The brand has been marketed worldwide and enjoys popularity in various countries. It is positioned as a premium cigarette brand and is available in several varieties, including full flavor, lights, and menthol.

Bond Street: Bond Street is a cigarette brand owned and manufactured by Philip Morris International (PMI). Named after a famous London street, Bond Street cigarettes have been on the market since 1902. They are known for their broad range of variants including different strengths, lengths, and flavors, catering to various preferences among smokers.

Over the years, Bond Street has established itself as a globally recognized brand in many countries worldwide. The brand has evolved with time, introducing new and innovative products to meet changing consumer tastes and regulatory standards.

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How Does Philip Morris International Grow Its Market Share?

Philip Morris International (PMI) employs various strategies to grow its cigarette market share and maintain its position in the tobacco industry. Here are several key approaches:

1. **Product Innovation**: PMI invests in research and development to introduce innovative products that meet changing consumer preferences and regulatory standards. This includes traditional cigarettes and potentially reduced-risk products like heated tobacco units.

2. **Diversification**: Beyond traditional cigarettes, PMI diversifies its product portfolio to include non-combustible alternatives such as IQOS, a heat-not-burn product. This diversification helps the company attract a broader range of consumers, including those interested in alternatives to conventional smoking.

3. **Marketing and Branding**: Effective marketing and branding strategies are crucial. PMI uses various channels to promote its products while adhering to regulatory requirements. The company has a strong brand portfolio, including Bond Street, leverages its brand equity to retain and attract customers.

4. **Global Expansion**: Expanding into new markets is another key strategy. PMI operates worldwide and seeks to enter or expand its presence in emerging markets with growth potential.

5. **Regulatory Navigation**: Navigating the regulatory environment effectively is crucial for tobacco companies. PMI engages with policymakers and regulatory bodies to shape the regulatory landscape and ensure its products comply with local and international laws.

6. **Sustainability and Corporate Responsibility**: Addressing societal concerns, PMI also focuses on sustainability and corporate responsibility efforts. This includes initiatives aimed at reducing the environmental impact of its operations and supporting community development, which can improve its public image and foster goodwill among consumers and regulators.

7. **Consumer Insights**: Understanding consumer behavior and preferences allows PMI to effectively tailor its products and marketing strategies. The company invests in market research to gain insights into consumer trends and adapt its offerings accordingly.

By leveraging these strategies, PMI aims to sustain and grow its market share in the highly competitive tobacco industry.

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Marlboro Market Share

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The definition of how Philip Morris International (PMI)’s market share is calculated is available here: market share. You may find more information about PMI’s Marlboro brand here: Marlboro.

PMI’s Marlboro brand has achieved an impressive 9.8% market share globally as of the end of the fiscal year 2023. This indicates that Marlboro’s competitive position worldwide is quite strong, as its market share has remained relatively stable since 2018.

The average global market share for Marlboro measured 9.7% between 2021 and 2023.

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L&M, Chesterfield, Philip Morris, Parliament, And Bond Street Market Share

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The definition of how Philip Morris International (PMI)’s market share is calculated is available here: market share.

You may find more information about PMI’s other top cigarette brands here: L&M, Chesterfield, Philip Morris, Parliament, and Bond Street.

PMI’s other top cigarette brands that have strong market position are L&M, Chesterfield, Philip Morris, Parliament, and Bond Street. Bond Street has dropped off the chart since 2020 due to the decrease in global market share to less than 1%.

As of 2021, L&M cigarettes held a 3.4% global market share, a 0.3% decrease from 2020. This puts L&M in second place behind Marlboro in terms of worldwide market share. The average market share for L&M measured around 3.5% between 2019 and 2021.

Coming behind L&M was Chesterfield which captured the third place as one of PMI’s top cigarette brands with a competitive market position. As of 2021, Chesterfield held a 2.3% global market share, a 0.1% increase from 2020. On average, the market share for Chesterfield was 2.2% between 2019 and 2021.

Within PMI’s portfolio, Philip Morris and Parliament ranked fourth and fifth, respectively, in terms of global market share, obtaining a market share of 1.7% each in 2021. The average market share for Philip Morris and Parliament was 1.8% and 1.5%, respectively, between 2019 and 2021.

PMI had a worldwide market share of just 1.1% in 2019 for Bond Street. This cigarette brand was among the lowest in terms of global market share within the tobacco maker’s porfolio.

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Conclusion

Marlboro is Philip Morris International’s flagship cigarette brand, with a global market share reaching nearly 10% as of 2023.

PMI’s market share for other cigarette brands ranged from 1% to 3%. Other cigarette brands that have a competitive global market position include L&M, Chesterfield, Philip Morris, and Parliament.

Bond Street held only about 1% of market share worldwide as of 2019, and possibly less going forward, as the brand has dropped off the chart since 2020.

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References and Credits

1. All numbers presented in this article were obtained and referenced from Philip Morris International’s quarterly and annual statements, earnings releases, earnings slides, investor presentations, etc., which are available in PMI’s Reports And Filings.

2. Featured images in this article are obtained free and are used without any attribution from the following links: Pixabay

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Disclosure

The content in this article is for informational purposes only and is neither a recommendation nor a piece of financial advice to purchase a stock.

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