STAMFORD, CONN. -- Jacek Olczak, Chief Executive Officer of Philip Morris International Inc. (NYSE: PM), outlined the need for common-sense regulations in the consumer goods sector while addressing global leaders at Semafor’s annual World Economy Summit in Washington, D.C., on April 25, 2025. Olczak emphasized the sector’s potential for innovation-led growth despite the volatile economic environment. He stressed, however, that without appropriate regulation and policy frameworks to enable scientific evaluation and consumer access, promising breakthroughs—such as innovations in wellness, food, and personal care products—could become missed opportunities.

While addressing the tobacco and nicotine industry specifically, Olczak stated, “Disparities in nicotine regulation are creating a global divide with profound health and economic impacts. 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% or higher.”

Today, more than 190 million smokers[1] in more than 20 markets—nearly 20% of smokers globally—have no legal access to smoke-free products, while cigarettes—the most harmful way to consume nicotine—are available on the market. In many countries that explicitly prohibit smoke-free products—including Turkey and Brazil—smoking rate declines are stubbornly slower. In 2022, smoking prevalence in Turkey remained over 30%, 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.

Conversely, many countries that have embraced smoke-free products—including the United States, 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%, 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. Japan could eliminate cigarettes entirely within a few years leading the way in Asia, and with greater support from governments and regulatory bodies the entire world could follow.

“Innovation needs to be accessible and impactful. 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% 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,” Olczak said while attending Semafor’s World Economy Summit.

As PMI continues to innovate and lead the way to a smoke-free future, it calls on policymakers worldwide to adopt pragmatic regulatory approaches—moving beyond outdated policies to prioritize the health and well-being of adult smokers, in their interest and the interest of public health.

Philip Morris International: A Global Smoke-Free Champion

Philip Morris International is a leading international consumer goods company, actively delivering a smoke-free future and evolving its portfolio for the long term to include products outside of the tobacco and nicotine sector. The company’s current product portfolio primarily consists of cigarettes and smoke-free products, including heat-not-burn, nicotine pouch, and e-vapor products. As of December 31, 2024, PMI’s smoke-free products were available for sale in 95 markets, and PMI estimates they were used by 38.6 million adults around the world. The smoke-free business accounted for 42% of PMI’s first-quarter 2025 total net revenues. Since 2008, PMI has invested over $14 billion to develop, scientifically substantiate, and commercialize innovative smoke-free products for adults who would otherwise continue to smoke, with the goal of completely ending the sale of cigarettes. This includes the building of world-class scientific assessment capabilities, notably in the areas of pre-clinical systems toxicology, clinical and behavioral research, as well as post-market studies. Following a robust science-based review, the U.S. Food and Drug Administration has authorized the marketing of Swedish Match’s General snus and ZYN nicotine pouches and versions of PMI’s IQOS devices and consumables - the first-ever such authorizations in their respective categories. Versions of IQOS devices and consumables and General snus also obtained the first-ever Modified Risk Tobacco Product authorizations from the FDA. With a strong foundation and significant expertise in life sciences, PMI has a long-term ambition to expand into wellness and healthcare areas and aims to enhance life through the delivery of seamless health experiences. References to “PMI”, “we”, “our”, and “us” mean Philip Morris International Inc., and its subsidiaries.