Recently, PMI a global tobacco giant, announced that it has halted the launch of new tobacco products and related investments in Spain, pending the promulgation of a royal decree by the Ministry of Health. This decree will address the regulation of nicotine pouches, one of the key products in which PMI has made significant investments as an alternative to new tobacco products.
In December 2024, the Spanish Ministry of Health concluded the public hearings for accepting proposals on reforming Royal Decree 579/2017, introducing relevant regulations for the supervision of nicotine pouches. Previously, Spain had adjusted its relevant regulations in accordance with EU directives, unifying the legislation for heated tobacco and traditional cigarettes, banning the addition of flavors and requiring health warnings on packaging.
The Current Situation and Projections of the Heated Tobacco Market in Spain
According to PMI's financial data released at the end of 2024, the sales volume of its heated tobacco products in Spain increased by 18.7% year - on - year, while the sales volume of traditional cigarettes decreased by 3%. Nevertheless, the market share of traditional cigarettes is still nearly 10 times that of heated tobacco.
The "Anti - Smoking Plan" approved by the Spanish Ministry of Health last year pointed out that heated tobacco products attempt to attract consumers by emphasizing their reduced harm compared to traditional cigarettes.
PMI's Global Strategy and Goals
PMI has set a goal that by 2030, 66% of its sales will come from alternatives to traditional cigarettes. By the end of 2024, this proportion had reached 40%. Hannes Pöhlmann said that although this proportion is higher in Europe and he believes that Europe will be the first region in the world to achieve the 2030 goal, he again emphasized the huge challenge posed by the significant differences in regulations among the 27 EU member states.
PMI announced its strategic transformation in 2015 to reduce its dependence on traditional cigarettes. In 2016, the company established a factory in Crespellano, Bologna, Italy, to produce Terea - brand heated tobacco products, supplying 50 countries worldwide, including across Europe and Japan. Since its operation, the company has invested 1.3 billion euros in the construction and development of this factory.
Source: Aibang Integrated Compilation
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