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 planning to replace 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 of 2022.
As seen in this article, Philip Morris cigarette and HTU shipment volume, PMI’s cigarette sales still account for nearly 90% of the company’s total sales volume as of 2022.
Therefore, PMI is still counting primarily on its legacy cigarette business for sales and revenues, and also, the cash dividends for shareholders.
In this article, we are going to look at Philip Morris International (PMI)’s top cigarette brands by market share.
Without further ado, let’s head out to the following topics!
Top Cigarette Brands By Market Share
International cigarette market share is defined as in-market sales volume as a percentage of total industry cigarette sales volume, excluding China and the U.S., including cigarillos in Japan, according to PMI’s annual report.
As shown in the chart above, Philip Morris International owned 6 out of the world’s top 15 international cigarette brands by market share between 2018 and 2022.
The top 6 cigarette brands owned by PMI are Marlboro, L&M, Chesterfield, Philip Morris, Parliament, and Bond Street.
However, Bond Street dropped off the chart in 2020 at less than 1% of the international cigarette market share.
Despite the setback in 2020, Philip Morris still owned 5 out of the world’s top 15 international cigarette brands by market share after 2020.
In 2022, Philip Morris’ Marlboro topped the chart at nearly 10% of the worldwide market share, the largest among all cigarette brands owned by the company.
Since 2018, Philip Morris’ cigarette market share for Marlboro has been close to 10% on a global basis.
While Marlboro’s market share has marginally declined in 2021, it still managed to maintain a consistent market share above 9% and the number reported in 2022 has even ticked higher to 9.8%, illustrating the strong brand power of the Marlboro cigarette.
Similarly, Philip Morris’ L&M came in at a 3.4% global cigarette market share as of 2021, a decline of 0.3 percentage points from 2020.
Since 2018, PMI’s L&M cigarette brand has slowly expanded its global market share, reaching a new high of 3.7% in 2020.
However, this figure has slightly dipped to 3.4% in 2021.
Philip Morris International’s Chesterfield took the 3rd spot with a global market share coming in at 2.3% as of 2021.
Philip Morris and Parliament were the 4th and 5th highest brands in terms of global market share, at 1.7% reported in 2021.
A trend worth pointing out is the declining market share for the Parliament cigarette brand since 2018 which reached a record low of only 1.4% in 2020.
Fortunately, this figure reversed to 1.7% in 2021, a record high in the past 4 years.
Similarly, a declining trend also happened for Bond Street in 2018 in which the market share hovered around 1.1% as of 2019.
As a result, Bond Street has dropped off the chart since 2020 as one of Philip Morris’ top 15 cigarette brands in the world as the global market share has dwindled to less than 1%.
Since then, Bond Street has not been able to make a comeback to be one of Philip Morris’ top cigarette brands by market share.
In short, Philip Morris owned 5 out of 15 world’s top cigarette brands as of 2021 despite having Bond Street drop off the chart in 2020.
Here is a summary of PMI’s top 5 cigarette brands by market share in the world in 2021: Marlboro, 9.5%; L&M, 3.4%; Chesterfield, 2.3%; Philip Morris, 1.7%; and Parliament, 1.7%.
In 2022, the market share for Marlboro went marginally higher to 9.8% on a global basis, the highest among all cigarette brands owned by Philip Morris.
References and Credits
1. All numbers in this article were obtained and referenced from Philip Morris’ financial statements 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
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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