Forty-Three Million Users in 109 MarketsWide moat

Philip Morris International (PM) — moat facet

More than 43 million people use PMI's smoke-free products, and in 27 countries those products are already most of its revenue.

The smoke-free business is no longer a pilot. PMI estimated more than 43 million adult consumers of its smoke-free products at the end of 2025, up by around 4.5 million in a year1. The products were sold in 106 markets at the end of 20252 and 109 by the end of June 20263, against about 170 markets for its cigarettes4.

Smoke-free net revenues by former region, 2025 ($M)Europe8,127EA, AU and duty-free4,217Americas2,691SSEA, CIS and MEA1,818PMI Form 10-K FY2025, revenue by product category and region
Europe and East Asia carry the franchise.

In a growing number of countries the transition is past the halfway mark. Smoke-free products were more than half of PMI's net revenues in 27 markets in 2025 and more than 75% in eight5. In three of its four former regions they exceeded half of net revenues in the fourth quarter of 20256.

Geography shows where the franchise is built. Of 2025 smoke-free revenue, Europe contributed $8,127 million, East Asia, Australia and duty-free $4,217 million, the Americas $2,691 million and South and South-East Asia, the CIS, the Middle East and Africa $1,818 million7. Europe and East Asia are the base; much of the developing world is still cigarette country.

A user base of 43 million is a moat of its own. Each of those consumers owns a device, uses a PMI consumable every day, and has already made the hardest decision, to leave cigarettes. They are far less likely to return to a cigarette than a smoker is to switch in the first place.

The count of users is the number to test the moat against: growth of about 4.5 million a year is what PMI delivered in 20258. A year adding well under half that would say the easy switchers have been converted.

Moat trajectory: Widening

Users up about 4.5 million in 2025; markets 106 to 109.

The number that tests this moat
Reported
Markets where PMI smoke-free products are sold
109 (June 2026), from 106 at end-2025

The reach of the franchise; stalling launches would cap the user base.

Source: PMI Q2 2026 results release ↗
⚠ Threats to the moat
⚠ THREAT 01
Markets Where Smoke-Free Is Blocked
Heated tobacco is banned in markets selling more than 440 billion cigarettes a year, including India, Turkey, Brazil and Vietnam.
References
  1. ReportedPMI estimated more than 43 million adult consumers of its smoke-free products at the end of 2025, up by around 4.5 million in a year.
    Philip Morris International fourth-quarter and full-year 2025 results release, Form 8-K exhibit 99.1 - smoke-free share of revenue and gross profit, 2026 guidance and 2026-2028 targets. — FY2025 · publ. 6 February 2026 · source ↗
  2. ReportedThe products were sold in 106 markets at the end of 2025 and 109 by the end of June 2026, against about 170 markets for its cigarettes.
    Philip Morris International Form 10-K for fiscal 2025 - Item 1 business: markets, products, competitors, market shares, shipments and employees. — FY2025 · publ. 6 February 2026 · source ↗
  3. ReportedThe products were sold in 106 markets at the end of 2025 and 109 by the end of June 2026, against about 170 markets for its cigarettes.
    Philip Morris International second-quarter 2026 results release, Form 8-K exhibit 99.1 - volumes, shares, ZYN and 2026 guidance - shipment volumes, market shares, IQOS, ZYN and Japan. — Q2 2026 · publ. 22 July 2026 · source ↗
  4. ReportedThe products were sold in 106 markets at the end of 2025 and 109 by the end of June 2026, against about 170 markets for its cigarettes.
    Philip Morris International Form 10-K for fiscal 2025 - Item 1 business: markets, products, competitors, market shares, shipments and employees. — FY2025 · publ. 6 February 2026 · source ↗
  5. ReportedSmoke-free products were more than half of PMI's net revenues in 27 markets in 2025 and more than 75% in eight.
    Philip Morris International fourth-quarter and full-year 2025 results release, Form 8-K exhibit 99.1 - smoke-free share of revenue and gross profit, 2026 guidance and 2026-2028 targets. — FY2025 · publ. 6 February 2026 · source ↗
  6. ReportedIn three of its four former regions they exceeded half of net revenues in the fourth quarter of 2025.
    Philip Morris International fourth-quarter and full-year 2025 results release, Form 8-K exhibit 99.1 - smoke-free share of revenue and gross profit, 2026 guidance and 2026-2028 targets. — FY2025 · publ. 6 February 2026 · source ↗
  7. ReportedOf 2025 smoke-free revenue, Europe contributed $8,127 million, East Asia, Australia and duty-free $4,217 million, the Americas $2,691 million and South and South-East Asia, the CIS, the Middle East and Africa $1,818 million.
    Philip Morris International Form 10-K for fiscal 2025 - segment note, product categories, customers and related parties. — FY2025 · publ. 6 February 2026 · source ↗
  8. ReportedThe count of users is the number to test the moat against: growth of about 4.5 million a year is what PMI delivered in 2025.
    Philip Morris International fourth-quarter and full-year 2025 results release, Form 8-K exhibit 99.1 - smoke-free share of revenue and gross profit, 2026 guidance and 2026-2028 targets. — FY2025 · publ. 6 February 2026 · source ↗
Sources
Generated September 26, 2026