Competition Weighs on Investor Sentiment
Investors have been watching competitors, including British American Tobacco, which has been expanding its presence in nicotine pouches. The added pressure has raised questions about how long Zyn can maintain its rapid growth and pricing strength.
Shares initially dipped in early trading after the forecast, then recovered and were up about 2% later in the session, suggesting the market sees resilience in the company’s strategy.
Industry analysts say the new targets offer reassurance that smoke-free products can offset slowing cigarette sales across many markets.
IQOS and Other Smoke-Free Products in Focus
Philip Morris continues to invest heavily in heated tobacco devices such as IQOS. These products are central to the company’s push away from combustible cigarettes.
Still, some regions present challenges. In Japan, one of IQOS’s largest markets, higher taxes and price increases could limit growth and weigh on shipment volumes this year.
Despite those headwinds, the company said it reached its 2024–2026 performance goals a year early and has set new targets through 2028. Management expects shipment volumes for smoke-free products to grow at high single-digit to low-teen rates over the coming years.
