Philip Morris Market Share By Country And By Region

Market share. Pixabay Image.

This article presents Philip Morris International (PMI)’s total market share and market share breakdown by region as well as 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 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 – Philip Morris Cigarette And HTU Sales Volume By Region.

Without further ado, let’s head out to the following topics!

International Market Share

PMI’s total worldwide market share (click to enlarge)

Market share definition – PMI’s 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 the company’s earnings releases.

Keep in mind that the market share data shown in the chart above excludes that of China and the U.S.

All told, Philip Morris’ international market share averages 28% between 2018 and 2022 as shown in the chart above.

As of 2022, Philip Morris’ international market share increased slightly to 27.6%, a 0.3 percentage point higher over 2021.

However, on a long-term basis, Philip Morris’ worldwide market share has declined slightly from 28% reported in 2017 to 27.6% reported in 2022.

Overall, Philip Morris International has been able to maintain its dominance in the tobacco industry at nearly one-third of the global market share.

Cigarettes And HTUs Market Share

PMI’s worldwide market share for cigarettes and HTUs (click to enlarge)

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 the company’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 Philip Morris’ proprietary IQOS blade.

That said, Philip Morris’ market share for cigarettes on a global basis totaled 23.6% in 2022, a drop of 0.2 percentage points from 2021 or as much as 3.5 percentage points from 2017.

Since 2017, Philip Morris’ worldwide market share for cigarettes has been on a steady decline and the 2022 figure was a record low for the company in the last 6 years.

In contrast, Philip Morris’ international market share for heated tobacco units or HTU has slowly increased, reaching 4.1% as of fiscal 2022, a record high in the last 6 years.

Since 2017, Philip Morris’ market share for HTU has increased considerably, up by an impressive 3.3 percentage points over the last 6 years.

While HTU sales have grown significantly in recent years, they were still comparatively small with respect to cigarettes in terms of market share, and sales revenue.

Market Share By Region

PMI’s market share by region (click to enlarge)

The market share by region data shown in the chart above includes the sales of cigarettes and HTUs.

That said, Philip Morris’ market share was the highest in the European Union among all regions in the world, topping 40% as of 2022.

More importantly, this figure has been on the rise since 2017, growing steadily from 38.3% reported in 2017 to the 40% market share reported in 2022.

On the other hand, the Americas region took the second spot with a market share coming in at 35% as of 2022.

Unlike its European Union counterpart, Philip Morris’ market share in the Americas region has been on a decline since 2017, down roughly 4 percentage points over the last 6 years.

Philip Morris had the lowest market share in the South & Southeast Asia region, reportedly at only 19% as of 2022.

This market share result also has been on a decline, down roughly 4 percentage points since 2017.

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

For example, Philip Morris has managed to grow its market share in Eastern Europe from 27% to 30% between 2017 and 2022.

Similarly, Philip Morris’ market share has gained from 25% to 27% in the East Asia & Australia region over the last 6 years.

European Union Market Share

PMI’s European Union market share (click to enlarge)

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

As seen in the chart above, Philip Morris’ total market share in Italy was among the highest at more than 50%.

As of 2022, Philip Morris’ total market share in Italy has increased to 54%, a record high since 2017.

On the other hand, Philip Morris had the lowest market share in Spain, clocking in only 30% as of 2022.

In Germany, Philip Morris’ market share also has been on the rise, growing from 37.2% reported in 2017 to an impressive 40% reported in 2022, a rise of 3 percentage points in the last 6 years.

Similarly, Philip Morris’ market share in France has been roughly flat over the past 6 years, hovering around 43% while its market position in Poland has gone slightly lower to 39% in 2022.

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 position in the European Union region in the last 6 years from 2017 to 2022.

Eastern Europe Market Share

PMI’s Eastern Europe market share (click to enlarge)

Philip Morris had the biggest market in Russia in the Eastern Europe region.

As seen, Philip Morris managed to maintain its market position in Russia at 31% of the market share as of 2022, a seemingly impressive result.

In addition, Philip Morris’ market share in Russia has been on the rise, growing from 27.8% reported in 2017 to 31.1% reported in 2022, roughly a 3 percentage points growth since 2017.

Despite the ongoing war in Ukraine, Philip Morris’ market share in Russia does not seem to deteriorate much.

Instead, it has been able to maintain a market share of roughly 31% in 2022 when the war started.

Middle East & Africa Market Share

PMI’s Middle East and Africa market share (click to enlarge)

Egypt, Saudi Arabia, and Turkey are the 3 largest markets for Philip Morris International in the Middle East and Africa region.

That said, Philip Morris International’s total market share in Saudi Arabia totaled 41.6% in 2021, a 1.6 percentage point higher than the prior year.

Similarly, PMI’s total market share in Turkey also soared to 44.8% in 2021 from 41.3% reported in 2020.

Philip Morris’ market share in Turkey was even higher in 2022, reportedly at 48%, a record figure since 2017.

Philip Morris’ market share was the lowest in Egypt among the 3 countries in the Middle East, only at 22.2% as of 2022.

A trend worth pointing out is the decreasing market share in Saudi Arabia over the last 6 years.

As seen, the figure has decreased from 45% reported in 2017 to only 42% as of 2022.

On the other hand, Philip Morris’ market share in Turkey has been relatively intact, indicating the resilient market position of the company in this region.

South & Southeast Asia Market Share

PMI’s South and Southeast Asia market share (click to enlarge)

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 6 years but the figure declined slightly to 28.0% as of 2022.

Philip Morris has an even higher market share in the Philippines, notably at 65% on average.

In 2022, PMI’s total market share in the Philippines decreased to 62%, one of the record lows since 2017.

In terms of cigarette volume, PMI shipped nearly 144 billion units in the South & Southeast Asia region in 2022.

However, Philip Morris International had a considerably low HTU sales volume in this region, delivering only 469 million units in 2022.

Despite the relatively high market share in this region, Philip Morris’ market share in South & Southeast Asia has been on a decline, driven primarily by the decline in cigarette sales over the years.

Smoke-free products such as HTU sales in the South & Southeast Asia region have been relatively small compared to other regions in the world.

East Asia Market Share

PMI’s East Asia market share (click to enlarge)

Philip Morris International has a significant market share in countries located in East Asia such as Australia, South Korea, and Japan.

In particular, Philip Morris’ market share in Japan had been one of the highest in this region, reportedly at 38% as of 2022.

On the other hand, Philip Morris’ combined cigarette and HTU market share in Australia was slightly below that of Japan, reportedly at 33.4% as of 2022.

Philip Morris had the lowest market share in South Korea in the East Asia region, only at 19% as of 2022.

A notable trend worth pointing out is the growing market share in most countries in the East Asia region.

For example, Philip Morris’s market share in Australia has grown from 30.6% reported in 2017 to 33.4% reported in 2022, a rise of about 3 percentage points over the last 6 years.

Similarly, there was a significant jump in market share in Japan between 2021 and 2022.

However, Philip Morris’ market share in South Korea had declined considerably since 2018, with the latest figure reported in 2020 totaling only 19.2%, a record low since 2017.

Americas Market Share

PMI’s Latin America market share (click to enlarge)

Philip Morris presents the market share results of only 2 countries under the Americas region and they are Argentina and Mexico.

That said, PMI’s market share in Argentina declined significantly in 2022, tumbling from 66.3% reported in 2021 to 63.8% reported in 2022.

Despite the decline, Philip Morris still commands a high market share in Argentina which was over 60% as of 2022.

This market share figure is quite significant considering that there are only a limited number of countries in the world whose market share has exceeded 60% for the company.

Similarly, Philip Morris also had a significant market share in Mexico, topping a massive 65% as of 2022, and was up 1 percentage point from 2021.

However, this figure has declined from the historical high of 68% reported in 2018.

While Philip Morris’ market share in the Americas region has declined in recent years, it was still one of the highest among all regions in the world.

In terms of sales volume, Philip Morris shipped 66 billion cigarettes in the Americas region in 2022 but only 532 million HTUs in this region during the same year.

Therefore, Philip Morris’ market share decline in both Argentina and Mexico was most likely driven by the decline in cigarette sales in these countries.

Conclusion

On a global basis, Philip Morris’ worldwide market share, excluding China and the U.S., went higher slightly in 2022 to 27.6%, up 0.3 percentage points from 2021 but was down more than 1 percentage point from 2017.

When we looked at the breakdown of Philip Morris’ total market share, the cigarette market share declined the most, at 0.2 percentage points year-over-year, or 3.5 percentage points from 2017 to only 23.6% as of 2022.

In contrast, Philip Morris International has managed to gain market share for heated tobacco units, or HTUs, from 0.8% reported in 2017 to 4.1% reported in 2022, representing a gain of more than 3 percentage points in the last 6 years.

Moreover, Philip Morris’ market share by country shows that the company’s results slipped the most in the South & Southeast Asia and Americas regions over the last 6 years.

For example, Philip Morris’ combined market share of cigarettes and HTUs in Argentina dipped 3 percentage points year-on-year in 2022 to 63.8%.

Philip Morris International experienced a similar market share decline in Indonesia and the Philippines, down more than 5 percentage points over the last 6 years for both countries, to only 28% and 62% as of 2022, 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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