(MENAFN- Daily News Egypt) Philip Morris is accelerating its shift toward a smoke-free future in Egypt, backed by strategic investments, scientific innovation, and a strong focus on sustainability. The company is introducing alternative products, expanding its local operations, and committing to environmental sustainability goals as part of its long-term vision.

Contents

• Science and Innovation at the Core
• Growing Revenues from Smoke-Free Products
• From Japan to Egypt: Global Rollout of Alternatives
• Manufacturing and Tax Commitments in Egypt
• Addressing Health Concerns
• Regulatory Cooperation and Public Awareness
• Green Initiatives and Recycling Programmes
• Egypt and the Levant: A Regional Growth Hub

Daily News Egypt sat down with Ali Nevzat Karaman, Managing Director of Philip Morris Egypt & Levant, to explore the company's strategy, its expansion of smoke-free products, and how its research-driven approach is reshaping the industry.

Science and Innovation at the Core

Karaman explained that Philip Morris International (PMI)'s extensive scientific research has been the driving force behind the development of smoke-free products. Since 2008, the company has invested $14bn, with continued annual spending dedicated to scientific advancement.

“We have a dedicated research centre and laboratories in Neuchâtel, Switzerland,” he said,“to ensure the development and delivery of products that offer adult consumers a more suitable experience, one that can convince them to quit traditional cigarettes and switch to better alternatives that reduce the risks associated with smoking.”

PMI has gone through multiple phases of research and development in its pursuit of alternatives that carry reduced risk compared to traditional smoking. Karaman stressed that the company is genuinely committed to a smoke-free future, not for promotional purposes, but as part of a strategic roadmap to eventually end cigarette sales.

“The near-term goal,” he explained,“is for two-thirds of the company's net revenues to come from smoke-free products by 2030.”

Growing Revenues from Smoke-Free Products

The company's transformation is already underway. By the end of December 2024, 39% of PMI's net revenues came from smoke-free products across three main categories: heated tobacco (IQOS), nicotine pouches (ZYN), and e-vapor products (VEEV).

By the end of the second quarter of 2025, these categories accounted for 41% of the group's total revenues, surpassing even Marlboro cigarette sales. PMI's smoke-free products are now sold in 97 markets, and the company estimates they are used by more than 41 million legal-age consumers worldwide, many of whom have quit or significantly reduced their cigarette consumption.

Karaman added that PMI now invests 78% of its commercial spending in smoke-free products and directs 99% of its research and development expenditure to these alternatives.“Our strategy,” he said,“is to help every adult smoker quit traditional cigarettes and switch to scientifically substantiated alternatives that are considered better than smoking cigarettes.”

From Japan to Egypt: Global Rollout of Alternatives

Philip Morris began its smoke-free journey 15 years ago, launching its first alternative products commercially 11 years ago. Japan was the first market to introduce these products, marking the start of PMI's global transformation.

“Today, the group operates in 97 markets,” Karaman noted,“offering smoke-free alternatives to millions of adult consumers.”

Egypt joined this list in September 2021, when PMI introduced IQOS to the local market. The company has since launched successive versions, most recently unveiling the IQOS Iluma i in June 2025.

“The Iluma i was designed with enhanced features to better meet customer needs,” Karaman explained,“providing adult smokers with a more advanced alternative to traditional smoking.”

Since its launch, IQOS has gained traction in Greater Urban Cairo, where 7.5% of adult smokers in urban areas have switched to heated tobacco.

Manufacturing and Tax Commitments in Egypt

Karaman highlighted Philip Morris Misr's role as one of the largest and most compliant international taxpayers in Egypt.

On the manufacturing front, he explained that the Eastern Company had previously produced PMI products on its behalf. In 2022, however, PMI-through its indirect ownership in the United Tobacco Company (UTC)-obtained a license to manufacture both traditional and e-cigarettes in Egypt. This made it the second authorised tobacco manufacturer in the country.

“The license allowed us to manufacture our products locally through UTC,” Karaman said.“Today, the factory's total production capacity is fully utilised for our combustibles business. The licensing deal itself was valued at $450m.”

Looking ahead, Karaman disclosed that PMI is committed to expanding in the Egyptian market, capitalising on its growing consumer base and investment-friendly environment. The company is also working to increase the local content of its products in line with government initiatives.

Currently, PMI does not export products manufactured in Egypt, focusing instead on ensuring premium quality and advancing sustainability goals in the domestic market. Today, its smoke-free alternatives are offered in Cairo, Alexandria, and nine additional governorates across the country.

Addressing Health Concerns

Responding to claims that heated tobacco is as harmful as smoking, Karaman explained the difference.

“Lighting a cigarette produces smoke, which is the primary cause of smoking-related diseases. Heated tobacco eliminates burning and instead produces an aerosol, which is fundamentally different. This process reduces harmful substances. However, it is not risk-free and still contains nicotine, which is addictive.”

He pointed to the U.S. Food and Drug Administration (FDA), which in 2020 authorised PMI's IQOS Tobacco Heating System (THS) as a Modified Risk Tobacco Product (MRTP). The FDA's decision found that IQOS could promote public health by reducing exposure to harmful chemicals compared to cigarettes.

“This was a historic opportunity for public health,” Karaman stressed.“It demonstrated that IQOS is fundamentally different from combustible cigarettes and represents a better choice for adults who would otherwise continue smoking.”

Regulatory Cooperation and Public Awareness

Karaman further underlined that PMI operates under strict regulatory frameworks in Egypt and that approval to commercialise smoke-free products was based on scientific evaluation and expert discussions.

“Continuous collaboration with government bodies is essential,” he said,“to raise awareness about why smoke-free alternatives are a better choice compared to smoking, while reminding consumers that quitting altogether remains the best decision.”

Green Initiatives and Recycling Programmes

Sustainability has become a central part of PMI's operations. Karaman explained that waste from devices is repurposed and recycled, while some components of tobacco sticks are reused as fertiliser for farmers.

He also highlighted the Consumables TakeBack recycling programme, which enables consumers to return used heated tobacco sticks in a special pouch. These are collected at Philip Morris outlets, and participants receive reward points redeemable for accessories or tobacco products.

“Our goal is to reduce environmental impact while also engaging consumers in sustainable practices,” he said.

Egypt and the Levant: A Regional Growth Hub

Karaman concluded by emphasising the strategic importance of Egypt and the Levant cluster in PMI's global transformation.

“The region is at the forefront of our transition,” he said.“We have a clear plan to continue investing in research and development, with the aim of offering advanced smoke-free and nicotine products tailored to our markets.”

He reiterated that PMI's mission is to introduce alternatives that successfully encourage adult smokers to leave behind traditional cigarettes, thereby contributing positively to both public health and the environment.

“Our goal,” Karaman concluded,“is to reduce the risks faced by adult smokers. Science has proven that the main source of harm is combustion, which produces around 6,000 chemical substances. Eliminating burning fundamentally changes the equation.”

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