Philip Morris International Market Share Breakdown

Market share. Pixabay Image.

This article presents Philip Morris International (PMI)’s global market share and market share breakdown by region and by country.

Philip Morris International is a world-leading tobacco company and owns some of the world’s top cigarette brands such as Marlboro, L&M, Chesterfield, Philip Morris and Parliament.

Apart from cigarettes, PMI also markets and sells non-combustible tobacco products, including the IQOS blade and the respective consumables, such as the HTUs or heated tobacco units.

Meanwhile, PMI is shifting away from its traditional cigarette business to support smokers in transitioning to a less harmful and smoke-free future.

Investors interested in PMI’s cigarette and HTU sales volume may find more information on this page – Philip Morris cigarette and HTU sales by region.

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Definitions

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

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

Cigarette Market Share: Market share for cigarettes is defined as the in-market sales volume for cigarettes as a percentage of the total estimated industry sales volume for cigarettes and HTUs. For Japan, the total estimated industry sales volume also includes cigarillos.

HTU Market Share: Market share for HTUs is defined as the in-market sales volume for HTUs as a percentage of the total estimated industry sales volume for cigarettes and HTUs. For Japan, the total estimated industry sales volume also includes cigarillos.

Cigarette Over Cigarette Market Share: Cigarette over cigarette market share 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.

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Marlboro Cigarette Over Cigarette Market Share: Marlboro cigarette over cigarette market share is defined as Marlboro’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.

Heated Tobacco Units (HTU): HTU is the term PMI uses to refer to heated tobacco consumables, which include BLENDS, DELIA, HEETS, HEETS Creations, HEETS Dimensions (defined collectively as “HEETS”), Marlboro HeatSticks, SENTIA, TEREA, TEREA CRAFTED, and TEREA Dimensions, as well as the KT&G licensed brands, Fiit and Miix (outside of South Korea). HTU’s also include zero tobacco heat-not-burn consumables (LEVIA).

IQOS Devices: IQOS heat-not-burn devices are precisely controlled heating devices into which a specially designed and proprietary tobacco units are inserted and heated to generate an aerosol.

Reduced-risk Products (RRPs): Reduced-risk products (“RRPs”) is the term PMI uses to refer to products that present, are likely to present, or have the potential to present less risk of harm to smokers who switch to these products versus continuing smoking.

PMI has a range of RRPs in various stages of development, scientific assessment and commercialization. PMI’s RRPs are smoke-free products that contain and generate far lower quantities of harmful and potentially harmful constituents than those found in cigarette smoke.

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

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How Does Philip Morris International Distribute Its Products

Philip Morris International tailors its distribution and sales strategies according to the characteristics of each market.

The company uses different methods simultaneously, including direct sales and distribution, distribution through independent distributors, exclusive zonified distribution, distribution through national or regional wholesalers, and its own e-commerce and retail infrastructure.

They have dedicated multicategory product distributors assigned to exclusive territories within a market, and they also have their brand retail infrastructure for their RRPs and accessories for sales to consumers.

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Total Market Share

PMI’s total market share

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The definition of PMI’s total market share is available here: total market share.

Philip Morris International’s total or worldwide market share climbed to 28.3% in fiscal 2023 from 27.6% in fiscal 2022.

Since 2021, PMI’s total market share has increased by 1 percentage point. However, between 2017 and 2023, PMI’s worldwide market share has remained relatively flat at 28%.

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Cigarette And HTU Market Share

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The definitions of cigarette and HTU market share are available here: cigarette market share and HTU market share. HTU definition is available here: HTU.

Philip Morris International had a worldwide market share of 23.7% for cigarettes in fiscal 2023, roughly in line with the 2022 result.

On a long-term basis, PMI’s international market share for cigarettes has slightly declined, from 27.1% in 2017 to 23.7% in the latest result.

On the other hand, Philip Morris International’s worldwide market share for heated tobacco units or HTUs has steadily risen, reaching 4.7% as of fiscal 2023, a record high since 2017.

Although PMI’s HTU market share has grown, it remains small compared to cigarettes. However, it is a positive step towards a smoke-free future for the company.

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Cigarette Over Cigarette Market Share

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The definition of cigarette over cigarette market share is available here: cigarette over cigarette market share.

If we look at only the industry sales volume of cigarettes excluding the HTUs, Philip Morris International had a worldwide market share of 25.2% for cigarettes in fiscal 2023. This figure was in line with the 2022 result but had slightly increased from 24.8% in 2021.

On a long-term basis, PMI’s global cigarette over cigarette market share has decreased from 27.4% in 2017 to 25.2% in the latest result.

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Marlboro Cigarette Over Cigarette Market Share

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The definition of Marlboro cigarette over cigarette market share is available here: Marlboro cigarette over cigarette market share.

Marlboro is a brand of cigarette owned by Philip Morris International. It is one of the most popular cigarette brands worldwide and is known for its distinctive packaging and rugged cowboy imagery in its advertisements.

That said, Philip Morris International’s worldwide market share for its Marlboro cigarette reached 9.8% as of fiscal 2023. This figure was consistent with the previous year’s result but slightly increased from 9.4% in 2020.

On a long-term basis, PMI’s global market share for Marlboro has remained relatively flat at 9.8%.

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Market Share By Region (Legacy)

PMI’s market share by region (legacy)

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The definition of PMI’s market share of a specific region is available here: total market share.

This section is a legacy report by PMI. In 2022, PMI announced a change in the company’s regional structure: from six to four regions. The reporting of the new regional structure took effect in 2023. Market share data based on the new regional structure are available here: market share by region (new).

Philip Morris International had the highest market share in the European Union than any other region, topping 39.5% in 2022.

The market share of the Americas region came to 34.8% in 2022, a significant decrease of over five percentage points from 39.6% in 2017.

For the South & Southeast Asia region, PMI had a market share of 19.4% in 2022, the lowest among all regions under comparison. This figure marked a decline of 4 percentage points from 23.1% in 2017.

Although market share has decreased in several regions in the past several years, it is not the case in regions such as Eastern Europe, Middle East & Africa, and East Asia & Australia.

For example, PMI’s market share in Eastern Europe has risen from 26.7% in 2017 to 29.8% in 2022, while the figure for the Middle East & Africa region reached 24.7% as of 2022, an increase of 1 percentage point from 2017.

Similarly, Philip Morris International’s market share has gained from 25.4% to 27.3% in the East Asia & Australia region between 2017 and 2022.

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Market Share By Region (New)

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The definition of PMI’s market share of a specific region is available here: total market share. This section presents the new reporting based on PMI’s announced new regional structure.

Philip Morris International’s total market share in Europe reached 39.4% in 2023, roughly in line with the 2022 result. Philip Morris International’s total market share of 39% in Europe was among the highest for all regions under comparison.

The market share number for the Americas region came to 33.7% as of 2023, down one percentage point from 2022. PMI had the second highest market share in the Americas region compared to all other regions under comparison.

For the EA, AU and PMI DF regions, the market share number landed at 30.0% as of 2023, the third-highest among all regions under comparison. This figure marked an increase of 1.3 percentage points from 28.7% in 2022.

PMI’s total market share in the SSEA, CIS & MEA region gained by nearly one percentage point in 2023 over 2022 to reach 23.4%.

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Total Market Share In France, Germany, Italy, Poland, And Spain

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The definition of PMI’s market share of a specific country is available here: total market share.

Philip Morris International has substantial market shares in several European countries, such as France, Germany, Italy, Poland and Spain.

For example, PMI’s total market share in Italy is the highest among all European countries under comparison. The company’s market share figure in this country reached 53.9% as of 2023, an all-time high over the last seven years.

On the other hand, Philip Morris International has one of the lowest market shares in Spain, clocking only 29.3% in fiscal 2023.

In Germany, the figure came to 39% as of 2023, while it reached 42.5% and 41.8% in France and Poland, respectively, in the same period.

In short, PMI’s competitive positions in these European countries have been relatively solid in the last seven years, from 2017 to 2023.

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Total Market Share In Russia

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The definition of PMI’s market share of a specific country is available here: total market share.

Philip Morris International has one of the highest market shares in Russia in Eastern Europe. The market share figure in this country has increased to 31.8% as of 2023 from 27.8% in 2017.

Despite the ongoing war in Ukraine, PMI’s market share in Russia remains unaffected. In fact, the company has been able to maintain a strong market position in Russia since the war started in 2022.

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Total Market Share In Saudi Arabia, Turkey, And Egypt

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The definition of PMI’s market share of a specific country is available here: total market share.

Egypt, Saudi Arabia, and Turkey are some of the largest markets for Philip Morris International in the Middle East and Africa.

Philip Morris International has the highest market share in Turkey among all countries under companies in the Middle East and Africa. The company’s market share figure in Turkey has increased significantly to 50.5% as of 2023 from 41.3% in 2020, a rise of nearly ten percentage points in three years.

PMI’s market share in Saudi Arabia came to 41.6% in 2021, a 1.6 percentage point higher than the prior year. PMI has stopped publishing the market share data for Saudi Arabia since 2022. A significant trend is that PMI’s market share in this country has significantly decreased since 2017.

Philip Morris International had a market share of 32.8% in Egypt, the lowest among all countries in the Middle East under comparison.

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Total Market Share In Indonesia And Philippines

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The definition of PMI’s market share of a specific country is available here: total market share.

In South and Southeast Asia, Philip Morris International has a significant market share in countries such as Indonesia and the Philippines.

For example, PMI’s total market share in Indonesia averaged 28.4% between 2021 and 2023, while the average market share in the Philippines was 59.2% during the same period.

In fiscal 2023, the total market share came to 28.6% and 55.4% in Indonesia and the Philippines, respectively.

A significant trend is that PMI’s market share in the South and Southeast Asia region has significantly decreased over the last seven years.

For example, the total market share in Indonesia has decreased by nearly five percentage points since 2017, while the Philippines has experienced a 13 percentage points decline during the same period.

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Total Market Share In Australia, Japan, And South Korea

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The definition of PMI’s market share of a specific country is available here: total market share.

Philip Morris International has substantial market shares in East Asian countries such as Australia, South Korea, and Japan.

As of 2023, PMI holds the highest market share in Japan at 39.6% compared to other countries in the region. Over the last three years, PMI has gained a significant market share in Japan, increasing by four percentage points in two years.

On the other hand, Philip Morris International’s combined cigarette and HTU market share in Australia was slightly below Japan’s, reportedly at 34.8% as of 2023. Similar to Japan, the company’s market share in Australia has also risen considerably over the last few years.

Philip Morris International’s market share of 19.5% in South Korea was among the lowest in the East Asia region. Although PMI has gained considerable market shares in other East Asian countries, its result in South Korea has remained relatively flat.

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Total Market Share In Argentina And Mexico

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The definition of PMI’s market share of a specific country is available here: total market share.

Philip Morris International’s combined cigarette and HTU market share in Argentina and Mexico was 61.9% and 63.1%, respectively, in fiscal 2023.

These market share figures are some of the highest in the world, indicating PMI’s solid competitive position in countries in South America.

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HTU Market Share In France, Germany, Italy, Poland, And Spain

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The definition of PMI’s HTU market share of a specific country is available here: HTU market share. The definition of PMI’s HTU is available here: HTU.

Philip Morris International has a relatively low HTU market share in Europe. For example, the company has less than 10% of the market share for heated tobacco units in most European countries except Italy.

In Italy, PMI’s HTU market share has increased to 17.3% as of 2023, a significant gain since 2017.

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HTU Market Share In Russia

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The definition of PMI’s HTU market share of a specific country is available here: HTU market share. The definition of PMI’s HTU is available here: HTU.

Philip Morris International’s HTU market share in Russia arrived at 8% as of 2023, the highest figure ever measured and a gain of 8 percentage points since 2017.

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HTU Market Share In Saudi Arabia, Turkey, And Egypt

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The definition of PMI’s HTU market share of a specific country is available here: HTU market share. The definition of PMI’s HTU is available here: HTU.

Philip Morris International’s HTU market share in the Middle East appears extremely low. The company has zero HTU market share in Turkey, while Egypt’s figure reached 1.7% in fiscal 2023.

PMI has stopped reporting its market share in Saudi Arabia since 2022. In fiscal 2021, its HTU market share in this country was 1.0%.

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HTU Market Share In Indonesia And Philippines

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The definition of PMI’s HTU market share of a specific country is available here: HTU market share. The definition of PMI’s HTU is available here: HTU.

In South & Southeast Asia, Philip Morris International has zero HTU market share in countries such as Indonesia and the Philippines.

The good news is that the company’s market share in the Philippines has slightly increased in recent years, reaching 0.5% as of 2023.

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HTU Market Share In Australia, Japan, And South Korea

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The definition of PMI’s HTU market share of a specific country is available here: HTU market share. The definition of PMI’s HTU is available here: HTU.

Although PMI’s HTU market share is low in most Asian countries, it differs in Japan and South Korea. The company has substantial market shares in Japan and South Korea, as shown in the chart above.

As of 2023, PMI’s HTU market share in Japan rose to 26.7% from 21.3% in 2021, while it was 7.1% in South Korea during the same period, also a relatively high market share number.

However, Philip Morris International has no market share for HTU in Australia.

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HTU Market Share In Argentina And Mexico

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The definition of PMI’s HTU market share of a specific country is available here: HTU market share. The definition of PMI’s HTU is available here: HTU.

Philip Morris International has zero market share for HTU in South America. However, its HTU market share in Mexico has slightly climbed in recent years, reaching 0.5% as of 2023, while the figure has remained zero in Argentina.

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Conclusion

Philip Morris International’s total market share for cigarettes and HTUs has remained strong globally. However, we saw some dips in market share for cigarettes, while the figure for HTUs has steadily climbed.

In the majority of regions and countries where Philip Morris International operates, the company has a market share of at least one-third. These solid results were contributed mainly by cigarettes because PMI’s market share for HTU has remained low.

Therefore, PMI still has a long way to go in transitioning to a smoke-free future.

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References and Credits

1. All financial numbers presented in this article were obtained and referenced from PMI’s quarterly and annual statements, investor presentations, press releases, conference calls, scripts, 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

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