This article presents Philip Morris International (PMI)’s total market share and market share breakdown 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.
Philip Morris International is transitioning away from its legacy cigarette business and is helping smokers to do the shift, in the hope of delivering a less harmful and smoke-free future.
Readers who are interested in Philip Morris International’s cigarette and HTU sales volume may find the information in this article – PMI’s Cigarettes And HTUs Sales Volume By Country.
Without further ado, let’s head out to the following topics!
Total International Market Share
Market share definition – PMI’s total international market share is defined as cigarette and heated tobacco unit sales volume as a percentage of total industry cigarette and heated tobacco unit sales volume, according to PMI’s earnings releases.
Keep in mind that the market share data shown in the chart excludes that of China and the U.S.
All told, PMI’s total international market share averages 28% between 2018 and 2021 as shown in the chart above.
As of 2021, PMI’s total international market share declined slightly to 27.3%, a 0.4 percentage point lower than the prior year.
Overall, Philip Morris International has been able to maintain its dominance in the tobacco industry at nearly 1/3rd of the market share on a global scale.
Cigarettes And HTUs Market Share
Market share definition – Market share is defined as the total sales volume for cigarettes or HTUs as a percentage of the total estimated sales volume for cigarettes and HTUs, according to PMI’s earnings releases.
As mentioned, Philip Morris International also markets and sells HTUs or heated tobacco units apart from cigarettes.
HTU is a type of non-combustible consumable that is specifically designed and can only work on PMI’s proprietary IQOS blade.
That said, PMI’s international market share for cigarettes total 23.8% in 2021, a drop of 0.9 percentage points from 2020 or as much as 3.3 percentage points from 2017.
Since 2017, Philip Morris International’s worldwide market share for cigarettes has been on a steady decline and the 2021 figure was a record low for the company in the last 5 years.
In contrast, PMI’s international market share for heated tobacco units has slowly crept higher, reaching 3.5% in fiscal 2021, a record high in the last 5 years.
While HTU sales have grown significantly in recent years, they were still comparatively small with respect to that of cigarettes in terms of market share and sales volume.
European Union Market Share
PMI has a substantial market share in several countries in the European Union and they include France, Germany, Italy, Poland and Spain.
As seen in the chart above, PMI’s total market share in Italy was the highest at more than 50% and the figure came in at 53% in 2021.
On the other hand, PMI’s total market share was the lowest in Spain, clocking in at only 31.1% in 2021.
Philip Morris International has gained a significant market share in Germany since 2017, notably from 37.2% reported in 2017 to 38.6% reported in 2021, representing a 1.4 percentage point increase in the last 5 years.
On a side note, PMI shipped a total volume of 183 billion cigarettes and HTUs in the European Union region in 2020, making the EU the largest market by sales volume for the company.
In short, PMI has been able to maintain its market share in the European Union in the last 5 years from 2017 to 2021.
Eastern Europe Market Share
Philip Morris International’s biggest market in Eastern Europe is Russia as shown in the chart above.
Moreover, PMI has managed to grow its market share in Russia in the last 5 years from 27.8% reported in 2017 to 31.7% reported in 2021, a 3.9 percentage point growth since 2017.
In 2020 alone, PMI shipped 93 billion cigarettes and 21 billion HTUs in Eastern Europe based on the information from this article, PMI’s Cigarettes And HTUs Sales Volume.
Therefore, PMI’s combined cigarette and HTU sales in Eastern Europe totaled as much as 114 billion units in 2020, the 3rd-highest figure among all regions in the world.
Middle East & Africa Market Share
Saudi Arabia and Turkey are the 2 largest markets for Philip Morris International in the Middle East and Africa regions.
That said, Philip Morris International’s total market share in Saudi Arabia increase significantly in 2021 to 41.6%, a 1.6 percentage point higher than the prior year.
Similarly, PMI’s total market share in Turkey also rose to 44.8% in 2021 from 41.3% reported in 2020.
South & Southeast Asia Market Share
In South and Southeast Asia, Philip Morris International has a significant market share in this region.
For example, PMI’s total market share in Indonesia averaged around 30% in the last 5 years but the figure declined slightly to 28.0% in 2021.
PMI has an even higher market share in the Philippines, notably at 70% on average.
In 2021, PMI’s total market share in the Philippines decreased to 62%, a new low since 2017.
In terms of cigarette volume, PMI shipped nearly 145 billion units in the South & Southeast Asia region.
However, Philip Morris International had a considerably low HTU sales volume in this region, reporting only 36 million units in 2020.
East Asia Market Share
Philip Morris International has a significant market share in East Asia, including Australia, South Korea and Japan.
In particular, PMI had been gaining market share in Japan, notably from 32.1% reported in 2017 to 38.5% reported in 2021.
On the other hand, PMI’s combined cigarette and HTU market share in Australia was nearly flat between 2017 and 2021.
In 2021, PMI’s total market share in Australia reached 32.3%, a rise of massive 2.4 percentage points from the prior year.
Similarly, there was a decline in market share in South Korea since 2018 and the figure reached only 19.7% in 2021, a decline of 1 percentage point year over year.
Latin America Market Share
Philip Morris International reported the market share data only for Argentina and Mexico in the Latin America region.
As seen in the chart, PMI’s market share in Argentina declined significantly to 55.1% in 2021 from the prior year of 61%, nearly a 6 percentage points decline.
Similarly, PMI’s total market share in Mexico also decreased to 63.7% in 2020 from 67.1% reported in 2019.
However, this figure increased to 64% as of 2021.
While PMI had reported a significant decline in market share in Latin America, the company’s market share in this region was still one of the highest among all regions in the world.
Moreover, PMI shipped 64 billion cigarettes in Latin America in 2020 and only 0.45 billion HTUs in the same year.
On a global basis, PMI’s worldwide market share, excluding China and the U.S., dipped slightly in 2021 to 27.3%, the lowest figure since 2017.
When we looked at the breakdown of PMI’s total market share, the cigarette market share declined the most, at 0.9 percentage points year-over-year or 3.3 percentage points from 2017, to only 23.8% in 2021.
In contrast, Philip Morris International has managed to gain market share for heated tobacco units or HTUs, from 0.8% in 2017 to 3.5% in 2021, representing a gain of 2.7 percentage points in the last 5 years.
Moreover, PMI’s market share by country shows that the company’s results slipped the most in the Middle East and Latin America regions.
For example, PMI’s combined market share of cigarettes and HTUs in Argentina dipped as much as 6 percentage points year-on-year in 2021 to only 55%.
Philip Morris International experienced a similar market share decline in Saudi Arabia and Turkey, to only 41.6% and 44.8% in 2021, respectively.
References and Credits
1. All financial numbers in this article were obtained and referenced from PMI’s quarterly and annual 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
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