Coldiretti and Philip Morris tobacco partnership

The long-term supply chain agreement between Coldiretti and Philip Morris Italia continues to shape the Italian tobacco sector, particularly in the Veneto region. The partnership, renewed in 2024 for another decade, involves planned investments of up to 1 billion euros through 2034 to modernize production. In Veneto, the collaboration accounts for more than 60% of regional tobacco production, supporting approximately 9,100 jobs and generating 55.8 million euros in annual added value.

This partnership operates amidst a structural transformation of the Italian smoking products market. A 2026 report by Logista and Fondazione Tor Vergata highlights a significant shift in consumer habits: traditional products like cigarettes and cigars, which accounted for 85% of distributed volumes in 2019, fell to approximately 70% by 2025. This decline is being offset by the rise of next-generation non-combustion products, such as heated tobacco, which reached nearly 20% of distributed volumes in 2025.

Despite the decrease in traditional volumes, the total market value has grown from 18.5 billion euros in 2019 to nearly 22 billion euros in 2025, a trend driven largely by an 11% increase in prices. The sector remains a vital economic pillar, with Logista moving over 80 million kilograms of products annually and contributing approximately 15 billion euros in excise duties to the treasury.

While the direct relationship between farmers and the multinational has ‘eliminated supply chain waste,’ industry observers and Italian officials have raised concerns regarding EU regulatory changes. Vice Minister Valentino Valentini and Undersecretary Claudio Durigon have specifically warned that certain ‘ideological’ EU policies could inadvertently drive consumers toward illegal markets rather than supporting the transition toward innovative products.