According to U.S. News, Philip Morris International is preparing to launch the IQOS heated tobacco device in Austin, Texas. The city will be a test market for Philip Morris International’s return to the U.S. after the company settled an intellectual property dispute with British American Tobacco Plc, removing a major obstacle to selling the product in the U.S. that prompted the International Trade Commission to ban it in the U.S. Import IQOS.
According to U.S. News, LinkedIn job ads show that Philip Morris International plans to launch the product in Austin. The ads were posted this month and include positions such as field sales representatives, regional managers and retail sales consultants.
Philip Morris International previously announced plans to launch IQOS in four cities in two states in the United States, starting with one city in the second quarter, and then launch IQOS on a larger scale in 2025. However, the company did not release details.
The United States will be an important market for IQOS. Euromonitor estimates total U.S. nicotine sales, excluding nicotine replacement therapies, at $143.6 billion in 2022. Cigarettes account for the majority of sales, but Euromonitor International predicts that the value of cigarettes will fall by 30% by 2027, while the value of alternative smoking products such as vapes and nicotine pouches will increase by 36% during the same period. Philip Morris International believes that by 2030, IQOS can account for 10% of the number of tobacco and heated tobacco units in the United States.
Investors are watching to see whether Philip Morris International can create a heated tobacco market in the United States, where vapes dominate. Brett Cooper, managing partner and analyst at equity research firm Consumer Edge, said Texas provides an important test market because of its broad demographics. He noted that cities as diverse as Austin, Houston and Dallas offer a broad range of consumers.
Texas has relatively low tobacco taxes, with the excise tax rate on a pack of cigarettes being $1.41 in September 2023, according to the U.S. Centers for Disease Control and Prevention.
In January this year, Texas introduced new vape laws that prohibit the use of products that resemble food products, or contain symbols or celebrities targeted at minors, or products that depict cartoon characters.
As an vape company that focuses on quality and innovation, Guutuu vape is also paying close attention to this news and expresses concern about Philip Morris International’s move to launch heated tobacco equipment in the US market.
Texas provides an important test market for Philip Morris International due to its broad demographics. Different cities such as Austin, Houston and Dallas have a broad consumer base, which provides opportunities for the promotion of IQOS.
However, it is worth noting that in January this year, Texas enacted new vape laws that prohibit the use of packaging designs that resemble food products, as well as products that contain symbols targeted at minors, images of celebrities, or depictions of cartoon characters . The implementation of this law may have a certain impact on Philip Morris International’s promotion strategy in the Texas market.
In short, Guutuu vape pays close attention to the launch of Philip Morris International’s IQOS heated tobacco device in Texas. As an enterprise that focuses on health and innovation, Guutuu vape hopes that Philip Morris International can create a successful heated tobacco market in the US market and provide consumers with more choices with safe and healthy vape products. They will continue to monitor relevant developments and look forward to seeing more innovation and compliance measures implemented in the vape industry to meet changing market needs and consumer health concerns.
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