Philip Morris International has suspended the launch of new tobacco products and related investments in Spain pending clarity on regulatory regulations from the Ministry of Health. PMI said that until the regulatory framework is unclear, despite long-term planning for the Spanish market, it will not launch products that could be affected.
Femo International: Will Suspend Investment in New Tobacco Products in Spain
According to Cinco Dias on February 22. PMI halted the launch of new tobacco products and related investments in Spain, pending a royal decree issued by the Ministry of Health.
Marco Hannappel, vice president of International Europe Southwest, said in an interview:
- “Until the regulatory framework is clear, we can’t think about investing and launching goods that could die.”
This includes control of two major markets, Italy and Spain. He admitted he was interested in launching ZYN nicotine packs in Spain.
- “Offering Spanish consumers all the alternatives in our portfolio is how we will achieve a smoke-free future.” But it’s not on the table because of the regulatory discussions that are going on right now.”
In December 2024, the Spanish Ministry of Health concluded public hearings accepting proposals for reforming Royal Decree 579/2017, introducing regulations regulating nicotine packs. Spain has already adjusted its regulations in line with EU directives, harmonizing the legislation on heated tobacco with that on traditional cigarettes, banning flavorings, and requiring health warnings on packaging.
Holding off on investments due to regulatory uncertainty in Spain
Hannapel said the regulation of heated tobacco products in Spain should not simply treat them the same as traditional cigarettes. He points out that it cannot be assumed that everything is the same and that everything has the same recipe. Heated tobacco products do not exist in Belgium because it equates them with Marlboro cigarettes. Countries such as Japan, Greece, Italy, and Portugal have promoted the development of heated tobacco products through reasonable regulatory frameworks and tax policies.
According to financial data released by Philip Morris International at the end of 2024, the sales volume of heated tobacco commodities in Spain increased by 18.7% year-on-year, while the sales volume of traditional tobacco decreased by 3%. Even so, the market share of conventional tobacco is still nearly 10 times that of heated tobacco. Hannapel said that the Spanish-heated tobacco market has developed rapidly in the past two years, and there is still a lot of potential in the future.
Italy’s tobacco sales model is similar to Spain’s, with sales through specialty tobacco stores and restrictions on advertising, but its laws and regulations do not explicitly equate heated tobacco with traditional tobacco. The Anti-smoking plan, approved by Spain’s Health ministry last year, states that heated tobacco products seek to attract consumers by highlighting their low harm compared to traditional tobacco.
Philip Morris International has set a goal that 66% of its sales will come from non-conventional tobacco products by 2030. By the end of 2024, the share is 40%, while the European market is higher. Hannapel believes that Europe will be the first region to meet the 2030 target, but he also stressed that there are significant regulatory differences among the 27 EU member states.
