Philip Morris International Inc. (PM) is a leading international tobacco company, with products sold in over 180 countries around the world. The company is an offshoot of Philip Morris USA, which is owned by Altria Group, Inc. Philip Morris International became an independent company in 2008. The separation was designed to allow the company to focus on the international cigarette business, leaving Altria to operate the domestic tobacco business along with its diversified business lines.
PM is best known for its Marlboro brand, which is the top-selling international cigarette and holds a significant global market share. Apart from Marlboro, PM's leading cigarette brands include Parliament, L&M, and Chesterfield. However, PM International has in recent years been investing heavily in smokeless products and product innovation in response to declining global cigarette volumes.
In recent years, PM has become a leading player in the global smoke-free product market, with the introduction of its heat-not-burn product, IQOS. The IQOS system heats tobacco rather than burning it, reducing users' exposure to harmful chemicals. This product reflects PM’s ambition to move toward a smoke-free future and its commitment to developing reduced-risk products (RRPs).
The company, based in New York, United States, with operations based in Lausanne, Switzerland, has more than 71,000 employees worldwide. For more than a decade, PM has been named among the top-ranking companies in the CDP's Climate Performance Leadership Index, recognizing its efforts to cut emissions, mitigate climate risks, and develop a low-carbon economy.
However, PM’s business operations and products also attract a good amount of criticism. The World Health Organization (WHO) and numerous health advocacy groups have criticized PM for promoting smoking behavior, especially among teenagers and young adults, and have called for stricter regulation of its marketing practices.
Despite the criticism, Philip Morris International remains a dominant player in the tobacco industry worldwide and continues to invest in innovations that can reduce the harm associated with smoking. Its financial performance suggests that its strategy of diversifying into smoke-free products is paying off, demonstrating resilience amidst the global decline in cigarette volumes. As of 2021, PM boasts a sizable $130 billion market capitalization and over $76 billion in annual sales revenue. As such, Philip Morris International continues to shape the global tobacco and nicotine product landscape.