Jacek Olczak, Chief Executive Officer of Philip Morris International (PMI), underlined the need for commonsense regulations in the consumer goods sector at the Semafor World Economy Summit in Washington, D.C.
This includes countering misinformation, outdated biases, and policymakers’ inability to keep up with rapid technological advances—all of which threaten to obstruct the progress innovation can deliver.
He emphasized the sector’s potential for innovation-led growth despite the volatile economic environment and the challenges innovators face due to regulatory disparities.
However, Mr. Olczak warned promising breakthroughs in areas such as wellness, food, and personal care products, could become missed opportunities without appropriate regulation and policy frameworks that enable scientific evaluation and consumer access.
At PMI, we’ve seen an international divide in attitudes toward tobacco harm reduction, preventing millions of adult smokers access to science-based smoke-free products in countries that have banned them.
“Disparities in nicotine regulation are creating a global divide with profound health and economic impacts,” Mr. Olczak told the audience at the event on April 25, 2025.
“Some countries that have prohibited smoke-free products are seeing higher smoking rates persist, while many of those whose policies encourage smokers to make better choices are advancing away from cigarettes more quickly.
“As a result, we are already starting to see nations where smoking has significantly declined while others unnecessarily continue to experience smoking rates of 20, 30 percent or higher.”
Smoking rates falling in many countries where smoke-free products are available
Today, more than 190 million smokersi in over 20 markets—nearly 20 percent of smokers globally—have no legal access to smoke-free products. Conversely, cigarettes—the most harmful way to consume nicotine—are available in all markets.
In many countries that explicitly prohibit smoke-free products—including Türkiye and Brazil—smoking rate declines are stubbornly slower or even flat. In 2022, smoking prevalence in Türkiye remained at over 30 percent—essentially unchanged since 2014. This stagnation persists despite the introduction of advertising bans, high excise taxes, plain packaging, and a complete flavor ban on cigarettes.
By stark contrast, many countries that have embraced smoke-free products—including the U.S., Sweden, Japan, and New Zealand—have seen correlating declines in cigarette sales and smoking rates.
Specifically, Sweden is about to achieve “smoke-free” status (as defined by the World Health Organization), with smoking prevalence currently at 5.3 percent—the lowest in Europe.
This is largely attributable to the long-running availability of snus as a less harmful alternative to cigarettes, in conjunction with traditional tobacco control measures.
Japan has also seen a significant reduction in cigarette smoking over the last decade, with this accelerated decline attributed to the nationwide introduction of heated tobacco products in 2015, stable quitting rates, and record-low initiation rates among non-smokers and youth.
Leading the way in Asia, Japan could eliminate cigarettes entirely within a few years and, with greater support from governments and regulatory bodies, the entire world could follow.
Policies must keep pace with innovation
At the World Economy Summit, Mr. Olczak highlighted the innovation at the heart of PMI’s drive to help move adult smokers move permanently away from cigarettes.
“Innovation needs to be accessible and impactful,” he said.
“At PMI, we have invested heavily, innovated continually, and transformed our business model to replace cigarettes with better, smoke-free alternatives, which as of Q1 2025 represent 42 percent of our global net revenues—up from zero a decade ago.
“It is imperative that countries worldwide adopt policy frameworks that keep pace with these innovations to deliver on the promise of progress.”
As we continue to innovate on our journey to deliver a smoke-free future, we’re calling on policymakers worldwide to adopt pragmatic regulatory approaches.
It’s time to put aside outdated prejudices and policies in favor of prioritizing the well-being of adult smokers—and seizing the monumental public health opportunity a world without cigarettes presents.