Philip Morris International recently released its 2021 annual report, and shipments of heat-not-burn products in 2021 will reach 95 billion, accounting for 29.1% of revenue.
By the end of 2021, the number of IQOS users has reached 21.2 million, followed by British American Tobacco (the total number of consumers of BAT heat not burn products has reached 18.3 million).
It is worth noting that Philip Morris International mentioned in its annual report the significant growth brought about by IQOS ILUMA:
In the Japanese market, since the launch of the product in August last year, more than 20% of the user base has achieved product switching, and more than 20% of the sales targets are new users. High-quality user experience, stronger reliability, and the advantages of no cleaning have significantly improved user conversion rates, retention rates, and promotion scores, and TEREA sticks have also become the fastest-growing product in the smoke-free category in Japan;
In the Swiss market, more than 1/3 of IQOS ILUMA products are sold to new users, and TEREA sticks accounted for 1/3 of the company’s heat-not-burn pod sales within 2 months of launch, driving the company’s heating and non-burning pods in Switzerland. The market share of non-combustible products increased from 6% in September last year to 8% in December.
Such a rapid growth rate is enough to prove the market popularity of IQOS ILUMA and heatsticks.