These six trends shape how we understand the operating environment we navigate, the risks we must mitigate, and the opportunities we can capture. Each trend presents both challenges and pathways for differentiation as we accelerate our transformation toward a smoke-free future, expand into wellness, and build resilience across our global operations.
Wellness evolution
Wellness evolution
The wellness economy is experiencing unprecedented growth as consumer preferences pivot toward holistic health optimization and environmentally conscious choices. This shift encompasses mental resilience, physical performance, proactive healthcare management, and nutrition science integration, alongside a growing demand for products and practices that minimize environmental impact. Consumer behavior is fundamentally changing: people are increasingly seeking better choices that serve both personal well-being and planetary health, rejecting trade-offs between the two. Forward-thinking companies are strategically realigning their value propositions and product portfolios to capitalize on this convergence of health consciousness and environmental responsibility, with targeted offerings across demographic segments that integrate sustainability into wellness. Furthermore, consumer attraction and retention strategies now demand robust wellness infrastructure, particularly as workplace modalities diversify across in-office, remote, and hybrid frameworks. Companies that leverage this trend as a competitive differentiator are positioned to capture market share while simultaneously enhancing workforce productivity, engagement metrics, and environmental stewardship.
Capitals impacted
Strategic priority
- Consumers
- Our Workforce
Natural capital preservation
Natural capital preservation
Intensifying environmental factors including climate volatility, extreme weather patterns, ecosystem degradation, nature loss, and resource scarcity present material business risks beyond traditional supply chain vulnerabilities. These macro-level disruptions directly impact enterprise value through operational continuity challenges, resource availability constraints, and the reliability of supply chains, capital markets, and consumer demand. Companies are accelerating the transition toward carbon-efficient solutions, renewable energy integration, and natural capital preservation. Forward-thinking organizations are leveraging these market signals to implement resource-efficient design principles, circular economy frameworks, and closed-loop systems throughout their product life cycle management, creating differentiation while optimizing cost structures. The shift toward circular economy initiatives that prioritize waste reduction, material recovery, and product life extension are becoming essential business practices rather than aspirational goals. Companies that proactively integrate these environmental imperatives are demonstrating enhanced risk management capabilities while building long-term resilience.
Capitals impacted
Strategic priority
- Circularity
- Climate
- Nature
Human capital development
Human capital development
The future of work is being fundamentally reshaped by technological disruption, demographic shifts, and evolving workforce expectations. Market leaders recognize that sustainable competitive advantage depends on strategic investments in upskilling and reskilling to ensure workforces remain fit for purpose amid rapid change. Organizations must address critical trends including youth unemployment, talent retention challenges, and the need for continuous learning cultures. Workplace well-being (physical, mental, and financial) has emerged as a direct driver of productivity, engagement, and innovation capacity. Company culture serves as the foundation for maximizing human capital potential, creating environments where diverse talent thrives and organizational values translate into collective action. Top-performing organizations embed talent development into long-term value creation strategies, implementing frameworks that encompass workforce planning, leadership pipelines, and cultural initiatives that foster belonging and purpose.
Capitals impacted
 |  |  |  |  |  |
Strategic priority
- Our workforce
- Workers in our value chain
Trust erosion
Trust erosion
The proliferation of disinformation and misinformation through social media and fragmented information channels is fundamentally undermining stakeholder confidence and creating unprecedented reputation risks for organizations. In this environment, trust has become the foundational currency for maintaining social license to operate. Companies without trust cannot secure the relationships, partnerships, and community acceptance essential for business continuity. This authenticity is not merely reputational, it is operational. Many of the most pressing challenges facing businesses today, from climate action to supply chain transformation, require multi stakeholder collaboration that cannot exist without trust as its foundation. Organizations must invest in building trust through verifiable actions, independent verification, proactive disclosure, and genuine dialogue that acknowledges both progress and setbacks. Companies that successfully navigate this landscape embed trust-building into governance frameworks, ensure leadership accountability for stakeholder relationships, and recognize that trust, once lost, is extraordinarily difficult to rebuild.
Capitals impacted
 | | | | | |
Strategic priority
- Our Workforce
Artificial intelligence (AI) integration
Artificial intelligence (AI) integration
The integration of advanced technologies is fundamentally reshaping market dynamics and competitive positioning. Forward-looking enterprises are leveraging AI-driven automation and digital transformation to enhance operational visibility, optimize resource allocation, and accelerate product development cycles. These capabilities represent critical differentiators in mature markets while creating new monetization pathways through data-driven business models. Organizations that successfully incorporate AI into core business functions are positioned to capture significant efficiency gains while simultaneously addressing emerging compliance requirements around data stewardship, cybersecurity risk management, and transparency. Success in this environment demands deliberate investment in both technological infrastructure and human capital reskilling and upskilling to maximize competitive advantage.
Capitals impacted
Strategic priority
- Our Workforce
Geopolitical fragmentation
Geopolitical fragmentation
The evolving global operating environment is characterized by increasing geopolitical complexity, shifting stakeholder expectations across markets, and the emergence of regional blocs with divergent regulatory frameworks. Organizations face heightened compliance demands requiring verifiable transparency throughout value chains and comprehensive disclosure spanning multiple jurisdictions. These developments coincide with an information ecosystem where trust capital has become a measurable asset with direct implications for a company's credibility, brand equity, and ability to maintain market access. Supply chain vulnerabilities are amplified by geopolitical tensions, trade policy shifts, resource nationalism, and regulatory fragmentation across regions. Companies are being forced to redesign global value chains through regionalization strategies, supplier diversification, and enhanced risk management to navigate tariffs, sanctions, and restricted access to critical materials. This fragmentation demands that organizations build geopolitical capabilities to anticipate disruptions, maintain operational continuity across volatile markets, and adapt business models to function effectively within an increasingly multipolar world where regulatory harmonization can no longer be assumed.
Capitals impacted
Strategic priority
- Workers in our value chain
- Nature
- Climate
Capitals
Human
Natural
Manufactured
Social
Intellectual
Financial
This online content about our Value Report should be read in conjunction with PMI’s Value Report 2025. This report includes metrics that are subject to uncertainties due to inherent limitations in the nature and methods for data collection and measurement. The precision of different collection and measurement techniques may also vary. This report includes data or information obtained from external sources or third parties. Unless otherwise indicated, the data contained herein cover our operations worldwide for the full calendar year 2025 or reflect the status as of December 31, 2025. Where not specified, data comes from PMI financials, nonfinancials, or estimates.
Unless explicitly stated, the data, information, and aspirations in this report do not incorporate PMI’s Wellness unit, Aspeya. Regarding the Swedish Match acquisition, completed late 2022, unless otherwise indicated, this report includes information pertaining to its sustainability performance. Please also refer to "About this report" on page 3 of the PMI’s Value Report 2025 for more information. Aspirational targets and goals do not constitute financial projections, and achievement of future results is subject to risks, uncertainties and inaccurate assumptions, as outlined in our forward-looking and cautionary statements on page 142. In PMI’s Value Report 2025 and in related communications, the terms “materiality,” “material,” and similar terms are defined in the referenced sustainability standards and are not meant to correspond to the concept of materiality under the U.S. securities laws and/or disclosures required by the U.S. Securities and Exchange Commission.
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