Our ambition starts with researching, developing, and commercializing less harmful alternatives to cigarettes for those adults who would otherwise continue to smoke, ultimately allowing us to phase out cigarettes and become an entirely smoke-free business. With an eye on the longer term, we are also laying down the foundation for a strong wellness business.
→
SOURCING
→
Transitioning from a mainly agricultural supply chain to an increasingly diversified one, including electronics manufacturing and nicotine supply
→
OPERATIONS
→
Reallocating R&D expenditure toward smoke-free product innovation and scientific capabilities, while reorienting manufacturing toward smoke-free products
→
COMMERCIALIZATION
→
Moving from B2B to a B2C consumer-centric model to commercialize smoke-free products
→
CONSUMERS & REVENUES
→
Shifting revenue source from majority cigarettes to majority smoke-free products while addressing the circularity of our products.
Notes: Unless otherwise stated, all metrics include Swedish Match, as well as Wellness business.
1 Data exclude Swedish Match.
2 Tobacco farmers whose tobacco is included in PMI packed products.
3 Data reflect the number of factories operated and owned by PMI at the end of the respective year. “Smoke-free products factories” is defined as manufacturing facilities producing heated tobacco units and/or oral nicotine products. The number of factories reported is based on location, i.e., if a facility is in one location, but has several physical areas (plants), the facility is counted as one.
4 For definition of available for sale, see [Glossary].
5 Excluding PMI Global Travel Retail. World Bank report issued in 2022 is used on a comparative basis for income level classification. For definition of low- and middle-income markets, see [Glossary].
6 Includes heated tobacco units, e-vapor unit equivalents, and oral smoke-free products in pouch or pouch equivalents, excluding snuff, snuff leaf, and U.S. chewing tobacco.
7 Combustible tobacco products volume includes cigarettes and other tobacco products expressed in cigarette equivalent units.
8 Total PMI smoke-free users is defined as the sum of total IQOS users, total oral smokeless users, and total e-vapor users of PMI products and considering poly-users across PMI's smoke-free product categories. For definitions, see [Glossary].
9 See PMI’s non-financial KPI hub for further details.
10 For definition of net revenues related to smoke-free, see [Glossary].
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.
Related articles
Value Report
We are committed to transparency and disclosure, and we show the progress we are making toward a world without cigarettes through our reporting.
Our value plan 2030+
Philip Morris International’s Value Plan 2030+ outlines its key ambitions and informs the journey toward its plan for 2030 and beyond.
Change in motion
5 min readFor more than a decade, PMI has pursued an industry-leading shift away from cigarettes—a transformation that goes far beyond product innovation to encompass how we allocate capital, engage stakeholders, and measure success.