How focusing on consumers adds business value
By investing in research and development, we stay at the forefront of science and technology, delivering advanced products that meet changing consumer needs. Our approach centers on advancing the science of nicotine, tobacco harm reduction, and tackling limited public understanding that can slow progress.
Helping adult smokers switch to smoke-free products, while maintaining strict marketing standards and guarding against underage access, builds trust and safeguards our market access in a shifting regulatory landscape.
As we expand in the smoke-free sector, we open new revenue streams that support transformation and long-term growth. Higher net revenues and gross margins per unit from these products reflect our investment in science, innovation, and brand-building, and provide an attractive return on these investments, which we redeploy to drive further growth in the smoke-free category, where the opportunity to switch further adult smokers remains very substantial. Diversifying our portfolio with more smoke-free products and wellness solutions puts consumers first, helps manage market risks, and creates new growth opportunities. Preventing illicit trade also protects consumers and the integrity of our brands.
Why is ‘Consumers’ a strategic priority?
Strategic approach
Our approach is rooted in science and innovation, the commercialization of high-quality products, and responsible marketing and sales practices, all designed to accelerate the shift away from cigarettes and reduce the harm of smoking for adult smokers.
Making cigarettes obsolete and maximizing access to smoke-free products
Every facet of our business is aligned with the goal of expanding access for legal-age users to scientifically validated smoke-free products, aiming to replace cigarettes. We focus on scientific research, continuous innovation, transparency, and high standards of reliability.
Reducing harm from cigarette smoking depends not just on having less harmful alternatives to cigarettes, but also on encouraging their broad adoption among legal-age smokers. That’s why we work tirelessly to raise awareness, ensure availability, and keep smoke-free products affordable, while robustly preventing underage access. Advocacy and partnerships help us to collaborate in shaping regulations that make better choices accessible to more people.
Our responsible marketing and sales practices are designed to target our products’ intended audience (adults who smoke or use nicotine products), with safeguards end-to-end. We also combat illicit trade and support enforcement by working closely with law enforcement.
Beyond smoke-free
Looking ahead, our focus is on driving growth in our smoke-free business and longer-term expansion into adjacent growth avenues through PMI’s Wellness unit, Aspeya. Our venture capital arm, PM Equity Partner Sàrl, takes minority strategic investments in innovative companies to support our smoke-free vision and beyond nicotine objectives.
We are actively seeking ways to reduce plastic in our heat-not-burn consumables, which is the product with the highest use of plastic after cigarettes in our consumables portfolio. We also run take-back programs to help consumers return used consumables so that waste management is responsible when feasible. As our portfolio evolves, we plan to conduct assessment of disposal practices to create effective strategies for end-of-life management.
Our policies
These publicly available documents are complemented by additional internal policies, including [PMI U.S. Marketing Code for Smoke-Free Products], PMI Product Quality and Compliance Policy and PMI Know Your Customer and Anti Diversion Policy, PMI External Communications and Engagement policy, Aspeya-specific policies, as well as internal guidelines and standards to guide operational activities.
2030+ aspirations
Smoke-free consumables
- Be a substantially smoke-free business by 2030, with smoke-free-related net revenues representing over two-thirds of our total annual net revenues globally.
- In around 60 of our markets, have over half of their total net revenues derived from smoke-free by the end of 2030. Of these markets, we aim for around 40 to derive more than 75 percent of their net revenues from smoke-free and around 20 to derive between 50 and 75 percent of their net revenues from smoke-free.
Responsible marketing and commercialization
- Ensure that all sales orders made via our online direct retail channels (either e-commerce or customer service centers) undergo technology-based mandatory age-verification by 2030, where technology is available.*
- Reach and sustain as of 2026 a success rate of at least 95 percent of our Challenge 30 mystery shopper program across all PMI International’s markets which have a brand retail presence.*
- Continue to implement our youth access prevention program in indirect retail across markets representing at least 90 percent of our total shipment volume throughout 2030.
- Continue to subject all new taste dimension flavors for our products to a comprehensive evaluation before they are made available commercially.*
We will begin reporting performance toward newly established targets (marked with an asterisk) in our next annual Value Report and will provide methodological details in our Non-financial KPI hub.
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Piloting age verification solutions to strengthen youth access prevention in Austria
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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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