Tobacco Asia

42 tobaccoasia Issue 5, 2023 September / October Staff Report Amid the cacophony of complete bans, increas- ingly limiting regulations, and a decades-long stig- ma placed on combustible cigarettes, new tobacco products have been receiving more attention from tobacco companies, consumers, and the media. The spotlight appears to be shining brightly on products such as vapes, heated tobacco, and nico- tine pouches – so much so that at times it might seem that combustible cigarettes are going the way of the dodo and, as Philip Morris International (PMI) c.e.o. Jacek Olczak recently announced, be- long in museums as artifacts to be gazed upon. But perhaps that is not quite the case just yet. While a growing number of consumers in western countries may be turning to alternative tobacco products, there still remains a strong demand for good old combustible cigarettes. This may be partly because many smokers feel that the newer tobacco products simply do not give them the same experience as cigarettes, whether it be the mouth-feel, nicotine hit, or just the ritual of light- ing up a cigarette and smoking it. It could also be because in large swaths of the world outside the group of western countries and a few more west- ernized ones, smokers do not have access to these new products due to regulations, bans, or lack of availability. A quick glance at some financial results in 2022 shows that there is still demand for combustibles: PMI sold 621 billion cigarettes, with shipments increasing almost 5% in Africa and the Middle East, 2% in the Americas, and 1.5% in South and Southeast Asia; British American Tobacco (BAT) sold 605 billion sticks worldwide; Imperial Brands saw a 35 basis point improvement in aggregate market share in its top five markets after five year of consecutive decline; JT Group sold 519.4 bil- lion cigarettes with increased volume for various markets; KT&G maintained its #1 position in its domestic market with a 65.4% market share, in- creased its sales volume by 0.2%, and saw a 47.2% increase in full year revenue from overseas sales of Combustibles Not Burnt Out Yet Smokers around the world are still lighting up. Credit: geri-tech In 2022, Philip Morris sold 621 billion cigarettes, British American Tobacco sold 605 billion, and JTI sold 519 billion.

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